If you are preparing to buy a home in the new year, there are seven ways you can prepare.
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1. Check your credit score. Your credit score is basically a numerical representation of your credit report. FICO credit scores range from 300 and 850. Having good credit is like gold when it comes to getting a mortgage. Those with credit higher than 740 will get the most competitive rates.
2. Do not open new credit cards. Opening up new lines of credit could damage your score, which would be detrimental to your overall purchasing power.
3. Consider asking for financial gifts for the holidays. Instead of requesting a tangible item, asking for a monetary gift could help you make progress toward your down payment and closing costs.
4. Start shopping for a real estate agent. Ideally, you should find someone who is knowledgeable and has experience in your area. You want someone who will work in your best interest and will be loyal to you.
5. Watch interest rates. Keeping an eye on trends pertaining to interest rates can help you stay on top of what’s going on in the market. Be sure to pay attention to government actions that may have an impact on rates.
6. Find a good mortgage lender. Your Realtor should be able to provide you with a good recommendation for lenders.
7. Get a pre-approval letter. This will demonstrate to any seller that you not only have the desire, but also the ability to purchase a home. When a market is trending toward sellers, demonstrating your qualifications as a buyer is very important.
Getting pre-approved will demonstrate to any seller that you not only have the desire, but also the ability to purchase a home.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
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