Buying a home in 2015? Start planning now!
Are you starting 2015 dreaming of buying a home? Buying a home is a huge decision, but it can be also be your best decision with the right amount of preparation. Commit to these New Year’s Resolutions to get yourself ready to make 2015 the year your dream becomes a reality.
1. Get to know yourself!
Buying a home (and taking out a home loan) isn’t something to take lightly, and the more you know about yourself, your family, and your home needs, the more likely you’ll be happy with your decision. Think about why you want to buy a home this year, why you want to live in the neighborhood you do, and what is truly important to have in your new home. Knowing the “why” and the “what” behind your desire to purchase a home in 2015 will help get you ready to buy smart!
2. Pretend You Have a Mortgage
If you currently rent or have a lower mortgage payment than you expect to have once you buy a new home, build a budget to reflect what your spending will look like once your new mortgage is factored in. Be sure to factor in the taxes, insurance and a little each month for home repair. Subtract your current housing payment from that number, and stash the difference away each month into a savings account. If this feels too tight financially, you might want to consider a less expensive house or reducing some of your existing monthly bills.
3. Save More Money
In order to get the best possible mortgage terms, most lenders suggest that you have a 20% down payment available. Even if this isn’t possible, the closer you are to this number, the better the loan rate you can qualify for. If you commit to the resolution above, this should be no problem! Even if you don’t use it all for your down payment, having extra savings for moving costs and furnishings will really help you get settled in.
4. Raise Your Credit Score
After checking your credit report, be sure to resolve any issue you can. Clean up any old debts that may still be haunting your credit score and eliminate ‘nuisance balances’ (small balances you have on a number of credit card accounts.) Don’t apply for any new credit accounts, and don’t close any existing credit accounts either. Both of these items can temporarily lower your credit score, and when you’re applying for a home loan, every point counts.
Put these New Year’s resolutions into practice to help you get ready for your new home purchase in 2015. Utilize the services of a professional and reputable real estate agent and mortgage lender to help you ensure that you’re committing to a home and a loan that you can manage!