Dreaming of owning South Lake Tahoe real estate? We don’t blame you! Living in a town that doubles as a year ‘round playground has some serious perks! Snow, sun, plenty of local events and close proximity to major cities gives us residents the best of both worlds. However, with prices on homes for sale in South Lake Tahoe increasing as well as interest rates, you may feel like you are being priced out of your dream of owning real estate in South Lake Tahoe. Don’t give up yet as there are plenty of ways to save! Check out these tips.
- Set a budget. This will help you sit down and take a long hard look at where you could cut back and where you are wasting money. While a $5 coffee here and there is no big deal, there are a lot of little costs that add up to a shocking amount. In order to fast track your goal of purchasing homes for sale in South Lake Tahoe, you will need to get serious about your budget. Figure out what you can cut out and what is necessary so you can better determine where to allocate your hard earned funds.
- Pay down other debt. Whether you start with the big ones or the small ones, pay down as much as you can so that when you go to get pre-approved for a loan, you get a better interest rate. This is actually one of the best ways you can get started before looking at homes for sale in South Lake Tahoe. Reducing your debt to income ratio is so helpful in the long run.
- Speaking of paying down your debt to income ratio, what if you don’t have any debt? Start building your credit history and keep it clean. Lenders & credit bureaus recommend using no more than 30% of the credit lent to you. So for those student loans, car payments are credit cards-keep your balance low and pay on time! Something to keep in mind for when you actually do get approved for a loan is to not open any big lines of credit until the real estate in South Lake Tahoe has actually closed. Any changes to your debt to income ratio will raise a red flag with your lender and can change your loan terms.
- If you are serious about buying South Lake Tahoe homes for sale, one of the best ways you can help speed up the process is to set up an automatic savings plan. Just select a realistic amount from every check that goes straight into savings with every check you get. You will automatically adjust to your new budget and you won’t even have to think about manually making deposits.
If you feel like you have been doing all these things but your down payment isn’t anywhere close to what is necessary to get you into homes for sale in South Lake Tahoe, you should probably set up an appointment with a lender. Your South Lake Tahoe realtor can recommend a credible one or you can ask to speak with someone at your banking institution. There are so many different programs available for loans that you may find out that you qualify for a mortgage that is perfect for you and would allow you to buy now. As always, your South Lake Tahoe realtor is a great resource for accurate information on all things South Lake Tahoe real estate! If you are looking for real estate in South Lake Tahoe, feel free to give us a call. We would be happy to help!