Whether you're buying your forever home or looking for an investment property, buying a Washington home is a huge decision. Spokane is a beautiful town to live in. It's a green city with temperate winters and a mild climate. The population in Spokane has grown steadily since 2012 thanks to a solid job market. But buying a home in Spokane can be quite tricky. There are many things to think about before you buy, and it can take time to know where to start.
Overview of the Spokane housing market
The Spokane housing market is experiencing a minor renaissance. Currently, prices are up, sales are up, and inventory is down. Sellers are enjoying the increased demand and can ask more for their properties.
Buyers, on the other hand, are finding it a bit more challenging to find their dream home. The number of houses for sale has decreased significantly, and many available houses are either in need of some TLC or overpriced.
Buyers, on the other hand, are finding it a bit more challenging to find their dream home. The number of houses for sale has decreased significantly, and many available houses are either in need of some TLC or overpriced.
But still, you can find a house that meets your needs. Keep these tips in mind when looking for your ideal home or investment property in Spokane.
How to determine what you can afford
Once you determine what you're looking for, it's time to figure out what you can afford. For starters, mortgage lenders will look at your debt-to-income ratio to determine how much money you can borrow. Your debt-to-income ratio is your monthly debt payments divided by your gross monthly income. Lenders typically like to see a 36% or less ratio, but some loans are available for those with a higher ratio.
Your down payment will also affect how much you can afford. The more you can put down, the smaller your mortgage will be. And remember your closing costs; they can add another 2–5% to the price of your home.
When buying a home in Spokane, especially as an investment property, you may consider paying in cash rather than carrying a mortgage. However, a mortgage will free up your funds for future investments rather than waiting several months or years to recoup enough funds to reinvest. That’s why buying an investment property with a mortgage is a great idea.
What types of mortgage options are available in Spokane
There are a few different types of mortgages available in Spokane. The most common mortgage in Spokane is the 30-year fixed mortgage. This is a loan where the interest rate stays the same for 30 years, and you make equal monthly payments until it's paid off. You need strong credit to qualify for the lowest interest rate.
Another option is the 15-year fixed mortgage. With this loan, you'll pay off your mortgage in half the time, but your monthly payments will be higher.
If you're looking for a little more flexibility, there's the adjustable-rate mortgage (ARM). With this loan, the interest rate can change in the future depending on current market conditions. The type of mortgage that you may qualify for depends on the individual. Check out each mortgage's pros and cons and make an informed decision.
How to choose the best mortgage in Spokane
Choosing the best mortgage in Spokane can seem daunting, but it doesn't have to be. By comparing options and doing your research, you should be able to find the best mortgage in Spokane for your situation. Here are some things to consider when shopping around for a mortgage in Spokane.
Interest rate
The interest rate you get on your mortgage will significantly impact how much you pay over the life of the loan. Comparing rates from multiple lenders is a great way to find the best rate possible.
Loan type
Spokane offers a variety of loan types, such as fixed-rate mortgages, adjustable-rate mortgages, and zero-down payment mortgages. Each type has its advantages and disadvantages, so it's essential to weigh your options carefully before deciding which loan is best for you.
Down payment
The amount of money you can put down on a home will directly impact the size of the mortgage you can qualify for. Be sure to factor in the required down payment and any additional funds you can put towards a down payment.
Fees
Many lenders in Spokane charge various fees, such as origination, appraisal, or application fees. When shopping for the best deal, consider these in your loan comparison.
Shopping around
Feel free to shop for the best deal. Comparing offers from multiple lenders can help you find a great rate and terms that meet your needs.
Tips for securing financing and closing a deal
Buying a home in Spokane can be complex, and you must be informed before jumping in. Generally, getting pre-approved for a loan is wise before even looking at houses. Getting pre-approved will give you an idea of your overall budget while also helping you negotiate better terms with the seller.
You'll also want to research different mortgage lenders to determine the best fit — particularly if they have any special programs or discounts that may apply to you. It's important not to rush through this aspect, as doing your due diligence could save you considerable money over the years.
Considering Spokane housing is typically more affordable than other major US cities, closing costs may still be high. Your lender should be able to provide you with an estimate of what these will look like, so make sure you plan and factor this into your budget.
Considering Spokane housing is typically more affordable than other major US cities, closing costs may still be high. Your lender should be able to provide you with an estimate of what these will look like, so make sure you plan and factor this into your budget.
Buying a house in Spokane, Wash., can be an exciting and rewarding experience if you research ahead of time. Knowing what to look for in neighborhoods, understanding the costs associated with purchasing a home, having access to essential resources such as financing and real estate agents, and taking advantage of available incentives are all important considerations when considering buying a home in Spokane.
With the proper preparation and resources, anyone can enjoy their home-buying experience in this beautiful city. You’ll need an experienced real estate agent to help you make the most of your real estate purchase. Tanya Starkel with Avenue Stone Real Estate is an expert Spokane real estate agent and ready to help you with all your needs. Please feel free to research Tanya online and reach out when you’re ready to get started.
*Header Photo courtesy of Unsplash
