Date Archives: January 2021

Buying a house in Sioux Falls is a major investment and not something you should take lightly. People spend years saving for a down payment on their first home and up disappointed because they didn't take the time to understand what to look for in Sioux Falls reals estate.

If you're looking at Sioux Falls as the place to rest your weary head, then we've created a guide to help you find the perfect home for you and your family. You'll spend years in the house, so make sure you purchase something that lasts and is what you want.

How Is the Sioux Falls Housing Market?

The housing market throughout the country fluctuates with the economy, changes in the city, and much more. There are times when buying a home is more expensive or when there are more homes available on the market.

Sioux Falls is a beautiful place to live with regular new construction. This means there are more homes available than in other markets. New homes tend to cost more, but there is less chance of immediate problems down the road.

Before choosing your Sioux Falls neighborhood, consider the different neighborhoods. Do you want an older home that is less expensive, but has more character? Do you want a new, more expensive home, but gives you peace of mind about the future?

Does the area have access to highways or Interstates for your commute? Is the area growing, stable, or in decline? These are important questions to ask when buying a home.

Are You Ready for a House in Sioux Falls?

Before looking for a home, you should know if you're ready to make the commitment. Almost all home loans require at least a 10 percent down payment, but it could be as much as 20 percent. What monthly payment can you afford?

What's your credit score? Is it good enough to get you the best interest rates? If not, you might want to wait until you've improved your score. You should also check out several different banks and lenders to find the one that provides the best rates.

You can pre-qualify for a home loan, so when you begin your search in Sioux Falls, you'll know exactly how much you can buy.

How Big of a Home Do You Need?

Homes come in all shapes and sizes. Consider what size of a home you need not only for right now but for the future.

Are you married with three children? You'll need a larger home with 3-4 bedrooms and ideally a large yard and multiple bathrooms.

Are you single or living alone? A small one-bedroom could be perfect and if your situation changes in the future, you've already built up equity in the home.

If you're married, but without children, then do you plan on having them? Buy a house that fits your expected family size, so you're ready when the time comes.

Choosing a home that's too small makes life cramped ad cluttered but buying too much home costs you more money and leaves you with room you don't need.

Be Picky on Your Home

There's no hurry to purchase a home. Searching for a home can be a long process because you don't want to get something you end up not wanting. You've spent years saving for the down payment and you know what you like.

Take your time and choose the home that fits you best. If you find something great early on, don't give up looking. They may pressure you to put in a bid by saying there are others interested but be careful of high-pressure sales tactics.

This is the place you'll live for the best decade or two, so find something you know you'll love in 10 years.

Should I Choose a 15- or 30-year Mortgage?

For a long time, the 30-year mortgage was standard for home buying, but many people don't want to spend that much time paying for a home. That was a time when people spent their entire life in one place, but today people want to move after 15 years.

A shorter mortgage means you'll pay more each month, but you'll pay off the mortgage much faster and with less interest. You're also building equity in the home as well, which you can use for a home improvement loan or home equity line of credit.

Lenders want to persuade people to use the longer mortgages because they get more money, but if you can make the higher payment, then a shorter mortgage is best.

Listen to the Home Inspector

When you tour a home, you're seeing the finished product. You see the walls; kitchen appliances and it's all decked out to look its best. You don't see the wiring or how the basement floods when it rains. You're not trained to see the many ways a home can look great but hide major expenses in the near future.

A home inspector comes in and looks at everything in the home both inside and out. They provide a list of issues and you and the bank decide if those issues are worth fixing. If the inspector comes back with a bad report, then the bank may not approve the loan until the issues are fixed.

The owner may need to lower the price, so you can afford to fix the issues when you purchase the home. It's important to never decide to purchase a home until it's been fully inspected.

Find Your Perfect Sioux Falls Home

When you're ready to buy a house in Sioux Falls, follow these tips to find the perfect one for you and your family. Buying a home is a major milestone and you deserve it to fit all your present and future needs.

If you're interested in moving to the Sioux Falls area, then please find out how to find the best real estate agent for your home search.