We are back with our special, “Buying in the Roaring ‘20s!.” All about buying a home of your very own, in this brand new year.
Now, here’s a question – did you make any New Year’s resolutions? Well, if you’re buying a house in 2020 we have a special list just for you! Resolutions that will help you get into a home of your own…..and once you buy it, resolutions that will help you comfortably afford it, and even help make it more valuable, as time passes.
So let’s begin with resolutions designed to help you get into a home of your very own.
Resolution Number One: I will find a Realtor. A local market expert. A Realtor can help you discover wonderful homes in wonderful neighborhoods. And they can also help you get ready – to buy a home of your own. They can walk you through the process, and show you not only homes…but the paperwork involved, the down payment you might need, your closing costs, and other factors involved in the purchase. They can also connect you to several trusted mortgage lenders. That’s a big step. Which brings us to resolution number 2:
I will talk with mortgage lenders. And when you do – give them an honest picture of your finances. How much money you make, how much you have in savings, and how and how much debt you have. The lender can then help you determine what you can afford. That’s really important, because it will keep you focused on properties you can actually buy, rather that looking at places that are out of your reach. Also, shop around, and talk with two or three lenders before you decide which one to go with.
Resolution Number Three: I will Take good care of my credit. Make sure you examine your credit report carefully, to make sure everything on it is accurate. If you find a mistake, contact the credit reporting agencies, and get it fixed. And if your credit score is on the low side, determine why. And then step by step get that credit score up. Those steps could include paying your bills on time, paying down your credit balances as much as you can, and not taking on too much credit. That’s a red flag.
Resolution Number Four: I will make no big purchases while I’m getting ready to buy a house.
If you’re serious about buying a house, the last thing you should do is go out and buy a new car. Or a ton of brand new furniture. Because if you make those big purchases using credit, your debt to income ratio could slide, and that could make it tough to get a mortgage. And if you think hey I’ll just pay cash, think again. Because, A lender will want to see that you have Money in the Bank. And if you spend all that money, or a big chunk of it, you will once again be a less attractive candidate for a mortgage. So the best plan? Get the house first, and then look at your budget and see what you can reasonably afford to buy.
And resolution number 5? Save, save, save. Sock away every dollar you possibly can while I’m approaching my home purchase. You might consider a no spend month, in which you only pay for the necessities, and promise to buy nothing else. Also consider putting a percentage of your salary in a savings account using direct deposit. Experts say if you don’t see the money, you won’t be tempted to spend the money. Really lean into it. And you might be we good perfect. surprised it how much money you can save in a short amount of time.
So there you have it five New Year’s resolutions designed to help you get into a home of your very own. Five steps that are not really that difficult….but which could help get the house of your dreams, with a great mortgage, at a great rate.