Homeownership is the average American’s greatest chance to accumulate wealth.
One way to capitalize on that is to buy in a neighborhood that’s likely to appreciate in value dramatically. The classic example in Chattanooga is the Southside, where prices ballooned over a decade.
Here are the indicators a neighborhood really is “up and coming”:
The neighborhood is surrounded by other desirable locations like parks, hiking trails, shopping, etc.
Natural boundaries and a unique culture clearly define the neighborhood.
The neighborhood is friendly to pedestrians who like to walk and bike.
Eateries and other cultural venues are close by.
There is abundant evidence of restoration and/or new home building as you drive through the neighborhood.
Like most of the nation, Chattanooga is a seller's market. Inventory is low, prices are rising, and demand is still high. That means home buyers are on the lookout for the perfect home. And when it comes around, competition from other buyers can be fierce. Multiple offers, a bidding war, higher selling price…
To get the right home for the right price, smart buyers in a seller's market need to be ready to roll as soon as the ideal home hits the market.
Your mortgage rate determines what house you can comfortably buy. And, there’s one huge reason why you should buy a home now. We’ll say that again: we think you should buy as soon as possible.
But isn’t it a good idea to watch the market and let it play out? Isn’t patience a virtue? What’s the rush? Why now?
Because interest rate are near a 3-year low - and will go up in 2017.
True, that’s not the end of the world. But if you’re hoping to add a much-needed bedroom, expand your square footage, or move into a nicer neighborhood, today’s interest rate is in your favor.
Your ability to borrow is based (in large part) on the mortgage interest rate. Basically, your income allows you a larger loan at a 3.875% rate than it does at a 4.275% rate. That’s because the size of your loan must stay below a 45% debt-to-income (DTI) ratio.
That .5% difference can mean tens of thousands of dollars less buying power.
Even though rising home prices affect what home you can afford, rising interest rates may end up changing your plans even more. Today’s mortgage rates are probably the tail end of a very favorable lending environment.
Well-known lender Freddie Mac has forecast a hike in mortgage rates to 4.0% in 2017.
That’s why, if you’re planning to buy, now’s the time to start the process. Talk to Jim Lea’s Team about which mortgage lender we recommend, and we can help you get into the home that’s just right for you.
If you’re buying or selling a home, you probably already know about home inspections. At least, you know that they’re part of the process sometime. But the details may not be clear to you.
Either way – if you’re hiring an inspector to assess the home you’re buying, or if you’re a seller and want to know about problems you need to fix – here are the 5 things you need to know about home inspections