About 54% of the people own their homes in Arlington TX, as per the last census. If you are trying to improve this statistic and are ready to buy a home in the city, there are a few key steps you need to take. But before everything else, you need to make sure that you are making the right move. Buying instead of renting is almost always a good move, but only if you can afford the mortgage and understand the financial and responsibility commitments it requires. And if you can afford to wait, it’s best to buy in the right market, ideally when both prices and interest rates are down. But you also need to take your personal circumstances into account.
Key Steps To Buying A Home in Arlington TX
There are a few steps that almost all home buyers (at least the ones buying with a mortgage) have to take when buying a home in Arlington TX, or almost anywhere else in the state.
Get Your Finances in Order
Even if you are buying with a mortgage, you need to have (ideally) 22% to 25% of the property price in hand. The 20% is for a down payment, which is the standard rate for most private mortgages. You can get a mortgage with a smaller down payment, but that would require you to get mortgage insurance, which would increase your monthly payments. If you can get an FHA mortgage, you will need to put down just 3.5%. The rest of the amount is for closing costs. They are lower on average in Texas, but it’s a good idea to have a modest surplus. You should also have a healthy credit score to get the best mortgage rates.
Make A List of Needs and Wants
It’s important to have a clear idea of what you can and cannot compromise on in a home. If you are adamant about buying in a specific location within Arlington, you might need to compromise on size or cost. But if you are looking for more room within a small price window, you may need to be flexible in the neighborhood. This clarity can streamline the buying process.
Understand The Inventory
The bulk of housing units in Arlington are single-family homes (stand-alone structures). There are a handful of apartment buildings and a few multifamily structures that offer condos. There are also some townhouses. Most of the city’s current inventory is in Home Owner’s Associations (HOAs). These HOAs have to follow state and local laws, and if you are buying into them, you will need to follow their rules. Many HOAs also have a monthly fee that you will need to pay in addition to your mortgage. There are both pros and cons to buying an HOA, so look into them before making a decision.
Decide Whether To Buy With or Without A Real Estate Agent in Arlington TX
It’s possible and perfectly legal to buy a home without a real estate agent in Arlington TX, but it’s not as easy and not recommended for first-timers unless you are willing to put in the time and research to understand the market and process thoroughly. Also, it’s still a common practice that the seller pays the commission for a buyer’s agent (no “direct” burden on your pocket), so it just seems logical to have their experience on your side and their assistance in finding and closing on a property.
Get Pre-Approved
Getting pre-approved for a mortgage presents you as a serious buyer. It also gives you more clarity on how much you can spend on buying a home, i.e., how much mortgage you have approval for.
Shop Around
With all this criterion, you can short-list available homes and start narrowing down the best prospects. Thanks to virtual tours, you can look into many properties from the comfort of your home but it’s best to visit all the properties you are serious about. Things like noise, smells, and neighborhood environment are something you have to be there to see.
Make an Offer, Negotiate, and Close
Once you have chosen a property, make an offer. You can negotiate on price, the work you want the seller to do on the property before handing it over, and even on closing costs. You will need to get an appraisal (for mortgage lender) and inspection (to identify any major flaws in the property). A lawyer will also need to look into the title of the property.
Buying The Ideal Property
Buying the best property for your money may require significant effort and support (from a realtor), but it’s worth it since a home is perhaps the most significant investment of your life.
Choosing the right real estate agent in Arlington TX, like Eric Torres can be a gamechanger. He can help you find the ideal property (on your budget) by leveraging his comprehensive understanding of the market.