May 7, 2014 – St. George Utah real estate tips – your homes appreciation generally occurs on a regional basis. Based on the strength or weakness of the community’s economic vibrance and the public’s ability access institutional credit. When either of those things are missing, real estate appreciation can be incremental at best.
With home appreciation low, don’t buy in the St. George market if you don’t plan on staying a while.
With the greater St. George, Utah, area’s current real estate market still clawing its way back from the “Great recession” of 2007, and the closing costs of buying or selling a home remaining steady – it’s important that you commit to your purchase for at least a few years – or potentially risk the loss of some serious cash. Even in our up market. Should the market turn south for any reason, those losses could easily become exponential.
If you haven’t already started… Fix that FICO score.
After the lending institutions retracted many of their loan products that helped sink our market a few years back, they also made it much tougher to qualify for a home mortgage going forward. As such, since most purchases require a mortgage, it’s absolutely critical to clean up your credit history. With the help of websites like CreditKarma.com you can easily check to make sure your credit histories facts are correct – finding and quickly correcting any discrepancies in your credit report.
Be realistic in how much home you can afford.
The general rule of thumb for most home buyers is that they should try to constrain themselves to viewing homes that cost approximately 2 ½ times their annual salary. By using one of the many free online calculators, a potential homebuyer can easily, and more accurately, guesstimate their monthly income vs. overhead, and think about any unforeseen expenses that might ultimately affect how much home you can purchase.
This is a generality that applies to just about any real estate purchase, regardless of whether or not you have kids. Whenever a buyer purchases a home, its an investment. As such, the buyer needs to consider the next potential owners. Chances are, particularly in St. George… The next buyer might very well have kids. And purchasing a home in the area with a subpar school could be a deal killer in the future. Good schools ultimately lead to increased property values in the surrounding area.
If you’ve got 20% down that’s great, but it may not be necessary.
While the major lending institutions may balk at providing home mortgages to those with recent dings to their FICO score – there remains a plethora of other options. From government-backed programs to hard money lenders, there remains a variety of public and private options that, should you qualify, continue to offer reasonable interest rate on their mortgage products, while still requiring a minimum down payment.