What can you do now to prepare for your 2018 home search? I have a few tips to share with you today.
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If you plan on buying a home in 2018, now is the perfect time for you to warm up for that house hunt so that you can hit the ground running in the new year.
From organizing your finances to finding the right real estate agent and mortgage lender, there is plenty to keep you busy. Here are a few things you can do now:
1. Check or know your credit score. Credit scores run from 300 to 850. The higher your score is, the better interest rate you will get. A lower interest rate can mean thousands of dollars in savings each year.
2. Don’t open up any new credit cards. First-time homebuyers often make this mistake. Even if opening a new card will get you a discount on that new TV, don’t do it just yet. Opening a new credit card can hurt your chances of getting a mortgage or the best possible interest rate, so please talk to us or your mortgage lender before opening a new line of credit.
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3. Ask for a financial gift this holiday season. Besides the mortgage loan, you will need a sizable amount of cash for the down payment, moving costs, closing costs, and repairs or updates.
Do not open up any new credit cards just yet.
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4. Interview potential real estate agents. Your neighbor, relative, or friend might be a real estate agent, and they may be a great fit for you. However, you owe it to yourself to look around and find an agent who is knowledgeable and can assist you in reaching your end goal of homeownership as soon as possible. If you need any recommendations, give us a call.
5. Keep tabs on interest rates. This is one thing a lot of buyers don’t keep up with. If you hear that interest rates are at historic lows or that they are on the rise, you should not assume that you will get the rock-bottom rate. Not everyone gets the same mortgage rate. It depends on your financial situation and your lender.
6. Find your mortgage lender. Before you start looking for a home, it’s very important that you find a lender. If you can’t buy a home right now, it makes no sense to find your dream home and then find out that it’s just out of reach. Talk to a mortgage lender first. We can refer you to some great lenders, or you can ask your bank for recommendations.
7. Get pre-approved. Give all of your financial information to your lender. It will be painful at first, but it will show the mortgage company that you are a well-qualified buyer and that you are going to be able to pay your mortgage on time, making you a low risk of foreclosure. You will need to bring your tax returns, W2s, bank statements, and information on any credit card loans, student loans, or auto loans you have.
If you have any questions or want to get started on all of this, give us a call or send us an email. We would love to help you reach your real estate goals in 2018.
