If you’re currently renting a property and thinking about making the shift toward owning a home, there are a few things you should consider.
When you’re looking to get out of your lease and take advantage of the market, it’s best to start early. Talk to a lender and get that pre-approval process started as soon as possible. You want to find out exactly what your budget is going to be so that you know what you’ll be able to afford and what you will be comfortable spending. The key in any transaction is knowing your buying power.
If your lease is up in 30 days, you certainly can buy a property, but that is going to be a very challenging transaction on short notice, unless you’re paying cash. Get pre-approved early so that if you have any problems with your credit, you can get them fixed before you buy.
You may also need more time to save for a down payment. It’s best to start looking for homes at least 90 days prior to the end of your lease in order to allow yourself time to find and close on a home. Remember, a lot of things can come up during the buying process. Inventory in San Antonio is very low right now, so finding that perfect place may take longer than expected. Starting everything ahead of time will never hurt your transaction; it can only help.
You may be wondering when you should talk to your landlord about your decision to end your lease. Some landlords may allow you to break your lease early, while others may not be so generous. With rental rates increasing in the San Antonio market, it’s okay to move out – especially if you’ve been in the area a long time. We recommend talking with your landlord and checking your lease terms early. You’ll want to determine whether there is an early termination fee or if you’ll have to give notice within a certain timeframe. An open conversation with your landlord will really help the transaction go smoothly.
Finally, it’s never too early to talk to an agent about what the home buying process looks like. Your agent will help you figure out what your upfront costs, like your down payment, inspection and appraisal costs, are going to be. You should also discuss your timeframe. If you’re making this decision with someone else, it is important to have this discussion early on so that everybody involved in the transaction is on the same page.
If you have any questions regarding this or anything else, please give us a call or send us an email. We’d love to help you out!