Real estate searches for properties in smaller rural areas have surged. Many people are looking for a country escape and with the government offering stimulus checks of $1,200 per individual, that money can be put to good use if you’re one of those looking to buy your next property or even take advantage of the spring selling season. Here are some ways that money can be used towards your next property.
Pay Off Existing Debt. In order to get a good mortgage rate on your loan, you’ll obviously need a good credit score. If your score is below 700, it might be time to start paying off existing debts to give your credit a boost before applying for a loan.
Make Home Improvements. To get your home ready to sell, you might have to make improvements like replacing carpet, updating your bathroom or kitchen or repainting the walls. This will not only increase the appeal, but it can also increase your home’s value.
Make a Down Payment. You’ll want to put down as much as you can when purchasing a property. Most loans require a 20 percent down payment, but there are loans available that require as little as three percent.
Pay the Appraiser and Inspector. When you put in an offer on your dream home, you’ll want to get the home inspected and appraised before you close to make sure the home was priced fairly and to assess the risk of your investment. Most lenders require an appraisal in order to get approved for a loan. Expect to pay between $400-$600 for an appraisal and $250-$400 for an inspection.
Use it for Closing Costs. Closing costs are lender and third-party fees paid at the end of a real estate transaction. Closing costs for a home typically run between two and five percent of the total cost of the home. The buyer will normally pay for these costs, but you can also negotiate with the seller to pay half or even the full amount in some cases.
If you need help navigating the buying or selling process, contact one of our expert real estate professionals at United Country Real Estate. We have thousands of agents nationwide ready to assist. Visit www.UnitedCountry.com to find an office near you.