Austin’s housing market and economy is booming right now. Countless sources are naming Austin as one of the top places in the United States to live because of the high quality of life and strong economy. It is estimated that as many as 110 people move to Austin every day, which is making our housing market extremely competitive.
Another factor adding to the rising market is the limited number of available homes in the Austin area. Home builders significantly reduced their activity during the Recession, and now they are playing catch-up, trying to provide inventory to the 110 people that are moving to Austin every day, as well as the people that already live here.
Tips to buy a home in Austin right now:
- GET PREAPPROVED before you shop for homes. Find a lender first, and get fully preapproved. You must be able to prove you can qualify for that house by already having the preapproval lined up, or a realtor will not present an offer on your behalf (and the seller probably won’t accept an offer). The market is too competitive right now, and other pre-approved buyers are anxious to make an offer as well.
- Pick a lender that will help you close on time. Austin's housing market is moving quickly, and no one is waiting for anyone. Make sure your lender is ready to move forward closing the loan as soon as your offer is accepted.
- Improve your credit score. It is the key driver for your interest rate. A 680 credit score will pay as much as $28,000 more (over the life of the loan, assuming a 30-year term) for the same mortgage as someone with a 720 credit score. Improve your credit score before you get pre-approved to ensure you get the best interest rate possible.