Financial Consider When Buying a House

A graduate of Tulane University, Eric Hymowitz owns and runs ROC Homes, a Houston-based company that manages the construction of private residences throughout Greater Houston. Since Eric Hymowitz founded ROC Homes, the core philosophy has not changed and remains to provide the local population with quality, affordable homes with desirable features.

When thinking of buying a house, there are many things to consider. Here are three financial factors to mull over.

1. Mortgage interest rates

To own a house requires putting down a substantial down payment. Rates across the US are low right now, and you can leverage the affordable borrowing rates to invest in a house through a smaller down payment.

2. Your debt-to-income ratio

A mortgage lender applies the debt-to-income formula to determine whether a prospective home can afford the monthly mortgage payments. Although the FHA has set the desirable debt to income ratio in the US at 43 percent, it’s not so much about the lender but more about how much you can manage to pay without undue stress.

3. The ancillary costs

It is not uncommon for a new homebuyer to like a house and yet fail to consider the costs associated with running it. Known as ancillary costs, they include items that may need replacing, such as the roof, gutters, the HVAC unit, and appliances.

Property Trends in the Houston Area

Eric Hymowitz studied business management at A.B. Freeman School of Business, Tulane University. He is the owner of ROC Homes, operating out of Houston. When he founded ROC Homes in 2002, Eric Hymowitz’s goal was to provide homebuyers with excellent and affordable homes in the Houston metro area.

The Houston area offers a diverse range of housing options to meet different needs. However, a hot property market like the Houston metro area can be frustrating for many homeowners, yet ideal for those looking to invest in single-family properties. Houston is a strong job market, especially for young families. Many are looking to rent as the local housing market is tight.

In 2020, the median home price in Houston went up by 6.2 percent to stand at ($260,212) from what was recorded in 2019. After recording a 13-month run of positive sales in Houston, August 2021 saw an improved inventory and prices moderating, although still higher than 2020. These trends were aided by strong buyer demand and an influx of new listings.

Reduction in Price of Building Materials

Eric Hymowitz runs a home construction company, ROC Homes, where he oversees the building of private residences in various neighborhoods in Greater Houston, Texas. As a real estate and construction professional, Eric Hymowitz is affiliated with the National Association of Home Builders (NAHB).

The NAHB is the largest network of home-building professionals in America. The organization aims to provide housing opportunities for everyone while striving to maintain professional success for its members. The organization also advocates for its members’ interests to the government at both state and federal levels.

In July 2021, the National Association of Home Builders was involved in a virtual discussion hosted by the presidency about the challenges facing the home building supply chain. The main challenge is the rise in the price of building materials resulting from the low supply. At the discussion, NAHB proposed that the lumber mill increased production to match the increase in demand.

The rise in the prices of home building materials had been evident for more than a year. In its capacity as an advocate of professional success for its members and economic growth, NAHB had been educating the government and the public on these high prices' effects on the economy. Leaders of the association appeared on major news outlets and had discussions with members of Congress, Cabinet leaders, and White House officials to reach a solution.