Your Guide to Home Buying: A Welcome Home Radio Recap
Welcome to the Welcome Home Radio Podcast, where we bring real estate and education together to help you make informed decisions for your family. In a recent episode, we were joined by Hector, a professional realtor with 26 years of experience, to answer some of the most common questions he gets from clients.
“Should I Buy a Home Right Now?”
This is the question on everyone’s mind, especially with fluctuating interest rates. Hector’s advice is clear: it’s always a good time to buy if your personal situation calls for it. Instead of focusing solely on the market, consider your life circumstances. Do you need more space for a growing family? Are you relocating for a new job? These factors are often more important than waiting for the “perfect” market conditions, which, as the hosts joked, is like waiting for the “perfect” golf shot—it’s never going to happen!
One of the key benefits of today’s market is that higher interest rates have led to more inventory and less competition. This means you’re less likely to get into a bidding war and have more room to negotiate with sellers. And while a higher rate might feel like a downside, you’re missing out on equity gains every month you wait. The average homeowner in the U.S. gains a significant amount of wealth over five years, and in Texas, that number is even higher. As Hector wisely put it, buying a home means you’re avoiding a “100% interest rate on rent,” which is money you never get back.
Pro-Tip: Even if you’re not ready to buy for several months, get pre-approved now. This helps you understand your financial standing and gives you time to resolve any potential issues.
“Should I Be Concerned About Foundation Issues?”
This is a common concern, particularly for those new to Texas. The simple answer from Hector and the team is yes, but it’s not the end of the world. The expansive clay soil in Texas, often referred to as “black gumbo,” is notorious for shifting, which can cause foundation movement.
However, foundation issues are common and often fixable. Here’s what you need to know:
- It’s not optional to check the foundation. It’s a crucial step in the home-buying process.
- Home inspections are key. Even on a new build, a professional inspection can identify potential issues.
- Watering your foundation is essential. To prevent soil from drying out and shifting, many homeowners in Texas water their home’s foundation, not just their yard. The team even joked about gifting soaker hoses to new clients!
- Poor drainage can be a major problem. Ensure that water is directed away from your home’s foundation with clear gutters and proper grading.
If a home has a history of foundation work, be sure to ask about the warranty and what was done. A good realtor will point out potential red flags and guide you through the process of getting a foundation engineer to verify the condition of the home.
“How Long Does It Take to Close on a Home?”
Unlike ordering from Amazon Prime, closing on a home is not an instant process. The timeline varies depending on a few factors:
- Cash vs. Loan: A cash purchase can close in as little as three to ten days, but a loan typically takes longer.
- Pre-approval Status: If you’re pre-approved, the process is much faster. A non-pre-approved buyer might be looking at 45 days.
- Appraisals, Inspections, and Title Work: These steps all take time and are necessary to ensure a smooth and proper transaction.
The average closing time for a loan is around 21 to 22 days. While some people might feel impatient, this time is necessary to ensure all the details are correct. One final consideration that can affect closing time is the Homeowners Association (HOA), or as it’s now more commonly referred to, the Property Owners Association (POA). These associations have rules and regulations designed to maintain property values, but they can sometimes add time to the closing process.
In the end, whether it’s a higher interest rate, a potential foundation issue, or the time it takes to close, every challenge can be navigated with the right information and a dedicated team.
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