5 Figures All San Fernando Valley House Hunters Should Know
When it comes to buying a San Fernando Valley house and putting a down payment in, there are five numbers that you must be familiar with. Experienced San Fernando Valley buyers know that buying and selling property is just a big numbers game. Here are the five figures you need to know to make sure your San Fernando Valley house buying experience is a positive one.
-
90% of homebuyers start their searches online
It’s hard to believe, but at least 90 percent of all homebuyers start their journey online. This is a great first step to take, and it will help you become more familiar with neighborhoods, the market, San Fernando Valley homes near you and the current climate without even leaving your couch.
Start looking at properties that interest you. Compare them to each other and to similar homes in other neighborhoods. Find out why some similar San Fernando Valley homes differ in price in the same area and try to get an idea of how far your money will go.
-
Expect five years of living in your San Fernando Valley house
If you don’t plan on living in your San Fernando Valley house for at least five years, then there’s no sense in buying a home. You usually won’t get a good return, and with all the moving and the high transition costs, you may lose money overall.
Although your mortgage will be somewhat paid off by then, you’ll still have to rehire a real estate agent, which will cost about 4 to 6 percent of your sale price and monthly costs. In short, this could eat away any value your home has appreciated over the last five years. Unless you’re in an extremely competitive market, it’s best to wait to buy if you’re going to move again soon.
-
Amount of time on market
If you know how long a house has been on the market, then you have an instant advantage over your seller. A home that has been sitting for so long usually has a good reason. There may be problems with the foundation, or it could be in need of other serious repairs. Homes that aren’t priced well tend to sit. The good ones get snatched up.
Even if the San Fernando Valley house has been on the market for a while, that doesn’t mean the home is no good. You just need to be cautious and get clarification that the repairs are merely cosmetic changes, not big repairs.
-
Expenses per month
When you calculate your mortgage, insurance and taxes, it’s a huge chunk of change coming out of your wallet every day. If you know what these numbers will be upfront, then you’ll have a better chance of buying a home that actually fits your budget, no guesswork involved.
-
No borrower’s debt above 43% of your total income
Last but certainly not least, this recent change in the housing market should not be forgotten. According to the “Qualified Loan” mortgage rules, the borrower’s debt can’t be more than 43 percent, which means all the monthly mortgage can’t be more than 43 percent of your income. There will be changes down the line, but this is to protect buyers from biting off more than they can chew.
Buying a San Fernando Valley house is no small task. You want to make sure you get a good deal and don’t overexert your bank account. Work with a good partner who can help you determine what’s best for you.