There are plenty of houses for sale in Zionsville, but what do you need to know before buying? How do you know if you’re ready to take that step? We will walk you through some essential factors to consider in this article. You’ll walk away feeling more prepared for what’s ahead and confident about the decisions you’ll make.
What to consider when buying in Zionsville
What’s your credit score?
Your credit score determines your ability to qualify for a mortgage and dictates what kind of interest rates you’ll qualify for. Perhaps you already have a strong credit score, or maybe it would benefit you to spend some time increasing your credit score before you look to buy. Your credit score matters because a higher credit score will impact your mortgage’s interest rate. On top of that, the loan type will vary depending on your score. If you need help parsing through all the options, reach out to a qualified Zionsville real estate agent.
What can you afford?
The best person to help you determine what you can afford will be your lender. It’s a good idea to consult with a lender as early in the process as possible. Many people say that the number one factor to consider when buying a home is monthly affordability, so a good first step is to look at your budget and figure out what sort of obligation you can meet on a monthly basis while still paying other bills and pursuing other financial goals.
How will you make a down payment?
There are multiple options for down payments — especially if you’re a first-time homebuyer. Many people buy houses using FHA loans which allow down payments as low as 3.5%. First-time homebuyers typically qualify for these loans, but FHA loans aren’t limited to individuals making their first home purchase. In some cases, people with high amounts of debt or lower credit scores may qualify for an FHA loan.
How much can you borrow?
This piece will likely have much to do with your existing debt and existing lines of credit. Your lender should be able to provide some clarity here as well.
What’s the local market like?
Currently, the housing market in Zionsville is somewhat competitive, meaning that it is experiencing a seller’s market. Last year, 36% of homes sold for an above-asking price, an 18.5% increase year-over-year. A good portion of homes receive multiple offers and go under contract in around one week. That said, Zionsville is slightly less competitive than the markets in nearby Indianapolis or Carmel.
Where do you want to live?
Rather than looking all over the city, you may want to focus on a specific part of town as you shop for a new home. What part of town you choose depends mainly on your preferred lifestyle and which amenities you want to be close to. Some of the factors to consider here are commuting distance from your workplace, driving time to your kids’ schools and other obligations, proximity to places of worship, and distance from your favorite grocery store.
What type of home do you want?
You’ll want to determine how much space you need, what kind of amenities you desire, and how much time you want to spend making improvements on the house once you move in. Some homeowners love to do DIY projects, while others prefer a move-in ready home. You may want to consider what your life looks like today and what your future life will be like. For example, if you and your spouse are considering starting a family shortly, you may want to imagine how your housing needs will change once you have a little one — or two — in your family.
What will you need to do before you move in?
Many homeowners and real estate agents recommend you get an inspection between the time you go under contract and the time of closing. This will show you if there are any concerns, structural or otherwise, about the condition of the house. In some cases, the inspection can happen during what’s called an “option” period, where you have the opportunity to back out of the purchase for a small fee. Some soon-to-be homeowners also like to have the house professionally cleaned before moving in.
What hidden fees might be involved?
Most people know purchasing a house will require a down payment. However, many homebuyers are surprised to learn about home insurance fees, escrow accounts, utility deposits, and HOA fees. You’ll want to take each of these into account as you plan your budget and try to understand what will be required of you financially to purchase your home.
Who will help you?
You're not alone if you're concerned about the amount to consider and plan before purchasing a home. Furthermore, it’s uncommon for anybody to go through the home-buying process alone. There is no shame in asking for help. We describe earlier in the article how a lender can help get the process started, but it's a real estate agent who will genuinely make the whole process smooth and successful for you. Taking the time to research and hire an expert in your area will be the most influential step you can take in your next real estate transaction.
With that in mind, after you’ve done some research and you’re ready to move forward in the buying process, please don’t hesitate to reach out to Zionsville Realtor® Cara Conde for expert guidance. Cara is an accomplished and successful agent and will help you determine which one of the Zionsville homes is best for you.
