3 Things to Know Before Buying or Selling

If your goal this year is to buy your first home, upgrade into your next home, or even get yourself positioned to make a move by 2027, there are three critical things you need to understand before taking that next step. Getting these right early can save you time, money, and stress later.

1. Know What You’re Comfortable Spending Each Month

The starting point isn’t the purchase price—it’s your monthly payment.

We look at your full housing payment, commonly referred to as PITI:

• Principal

• Interest

• Taxes

• Insurance

Once you know what monthly payment you’re comfortable with, we can work backward to determine the price range that actually makes sense for you here in the Austin market.

From there, you’ll want to evaluate:

• Do you like the location?

• Are you happy with the condition and style of the homes in that range?

If the answer is yes—great.
If not, you have two options: adjust the budget or adjust expectations. Knowing this upfront helps you make confident, informed decisions instead of reacting under pressure.

2. Understand Your Credit (and Improve It Early)

Your credit score plays a huge role in:

• The interest rate you qualify for

• The loan programs available to you

If your credit is too low, you may not qualify at all. But here’s something many people overlook: if you’re only 10–15 points away from a better rate, that’s absolutely worth addressing.

The key is timing. Credit improvements should be made months in advance, not when you’re already trying to buy or sell. A small increase in your score can translate into significant long-term savings.

3. Build Strong Reserves

Reserves are funds you have set aside outside of your normal monthly expenses. These typically include:

• Down payment or equity

• Closing costs

• Money for repairs or updates

• A financial cushion so you’re not stretched thin

Buyers need reserves to purchase with confidence.
Sellers need reserves to transition smoothly into their next home.

Having reserves gives you flexibility, peace of mind, and leverage—no matter which side of the transaction you’re on.

Let’s Talk About Your Next Move

Whether you’re buying, selling, or simply planning ahead, understanding these three factors puts you in control of your real estate journey.

For more real estate insights like this, follow our page. And if you have questions about your current or future goals, feel free to message us directly—we’d love to chat and help you plan your next move with confidence.