Start Your 2020 On The Right Path To Buying A Home
New Year’s Resolutions sometimes include losing weight, traveling more often, and getting certain crafts and projects done around the house. These are all great resolutions, but maybe it is time to think a little bit deeper with a resolution that lasts a lifetime. A resolution that will evolve over the next 10 years as you position you and your family better for retirement…buying a new home.
Buying a home is a new experience that will refresh your life with many joys. Whatever the reason, when it’s time to move, you just know. Coming to terms with investing in a home is a big decision and should be treated as such. With such a major life change, it’s only natural that more of the standard New Year’s Resolutions will fall into place as you adjust to your new lifestyle.
Being prepared ahead of time is the first step, so when you are ready to buy, you’re confident to make an offer. It’s never too early to start talking to your Realtor or Lender, and if you haven’t chosen either yet, fear not we have you covered. Understanding the true value of your lender and realtor is key to a smooth home purchase and will set you apart at the offer table with sellers. Whether you’re a first-time homebuyer or looking to upgrade/downsize, here are some helpful tips to turn this resolution into reality in 2020.
Start the Loan Pre-Approval Process Early
There’s nothing worse than spending months of research finding your dream home only to then realize it is out of your financial reach. Or not being happy with your loan terms because you didn’t plan ahead.
As a first-time homebuyer or even an experienced buyer, you may not realize how close you are to be able to purchase a new home. Maybe it’s your current job situation or a credit card that needs to be paid off, or you don’t have enough money saved up to put 20% down.
Every borrower and financial situation is unique and should be treated as such, so unless you have a background in home financing, it is best to rely on an expert with such a large purchase. Do yourself a favor and start the home loan process at least 30 days before you plan to start home shopping.
A reputable loan officer with experience like those on the YourWayLoan.com Team, can set you on the right path for buying a home. They will break down your entire financial picture and walk you through your best options. Not only does this information help you better understand the loan options you have available for you, but it also makes you more attractive to sellers and real estate agents.
Improve Your Credit Score Rating
To get the best mortgage rate, you will need to have a strong credit score. That’s not to say you will not be able to find a great rate that works for you and your financial situation, but a little extra work on your end never hurts.
When you work with a lender ahead of time, they can assess what current debts you have that are weighing down your borrowing power and develop a financial plan accordingly to improve your score.
If you’re young, it’s possible you’re new to credit, if you have any at all. If you are a buyer who has continued to watch this market and continued to pay rent, now might be a great time to take advantage of the low interest rates floating around.
For some buyers, you may be ready to start seeing see homes tomorrow and putting an offer this weekend. For others, it might be best to get your ducks in a row.
Separate Your Necessities From Your Wants
Shopping for homes can be fun at first, but can quickly become overwhelming, and honestly, you will probably start to get sidetracked with certain upgrades or features in every home you find.
Love the backyard? How about that double-sided fireplace? Maybe you’re a fan of the master tub with jets? Or maybe that kitchen is perfect for your inner chef? Just keep in mind that while all these things are lovely to have, are they truly a necessity when it comes to the foundation of the home itself?
Make a note of the items that are a priority to you such as the number of bedrooms and bathrooms, living within a reasonable commute to work or near public transportation, or maybe there is a certain school district or community environment that is important to you. Whatever those items are, take them into consideration before moving on to your wants based on your lifestyle.
Meet With Your Real Estate Agent
If you are searching for a home online, I am sure you have been contacted by more than one real estate agent, but when the time comes to tour homes (especially new construction), you will want to have a real estate agent by your side. By having a clear understanding of what you are looking for in your dream home, your agent can help set realistic expectations as you go find your dream home.
Once your necessities and expectations have been discussed, your real estate agent should set you up with a property alert to be notified of any new listings that match what you’re seeking. 15-Year+ Veteran, Sharon Seymour of the YourWayHome.com Team, sets up her clients with a buyer property alert through the YourWayHome.com website so they are notified of the latest listings as soon as they hit the market. With homes moving off the market in less than 10 days, it’s key to be on top of things.
The fun stage comes with you it’s time to visit homes that fit your price range and match up with what you are looking for in your dream home. On Day 1 of touring homes you may not be ready to make an offer, but the more houses you see, the better understanding you’ll have on the type of features and upgrades that should be standard in your price range.
Turn the “Maybe” Home Into the “Perfect” Home with a Renovation Loan
Seeing some homes while shopping that are almost perfect but not quite because of some needed repairs by the seller or outdated kitchen/bathrooms? You can easily include $30,000 in repairs and/or updates to turn that “maybe” home into the perfect home. You can qualify for this type of home loan just the same as a home loan without the renovation option.
An experienced realtor and lender can provide all the described free advice and valuable information. If you don’t have one, we can provide one to you. Let us know how we can help you achieve your home purchasing goals this year.