The New Year is the time for goal-setting and resolution-making. Some people decide that they are ready to be homeowners and buy their first home this year. If you are one of them, then you need to take action now.
Here are 4 New Year’s resolutions prospective homebuyers should make.
If you are planning to buy a house this year, then you should have saved enough money right now for your down payment.
Buying a house is a big financial decision. Just because you have saved enough money for the down payment, it doesn’t mean that you’re ready to buy a house. Remember, there are several fees that come with home buying. This includes home inspection fee, closing fee, home insurance fee, appraisal fee, moving fee etc. Make sure that you include these fees into your budget.
Check your credit
We know you’re excited to start house hunting. But there are a lot of things that need to be done before you start looking at houses. Checking your credit report is one of them.
Your credit score can impact several areas in your life, including your ability to buy a house. Lenders will use it as a determining factor whether or not you get approved for a mortgage. Checking your credit report ahead of time will give you an idea what kind of shape your credit score is in.
Get a copy of your credit report and check it for any errors or discrepancies. If you find any errors, do not hesitate to dispute them with the credit bureau.
Improve credit score
Improving your credit score takes time. If you are planning to buy a house in the near future, it is important to take steps as early as now to improve it.
If you have a lot of debt, try paying down your balances and make sure to pay your bills on time. Pay off credit cards with small balances. The smaller your debt to income ratio, the better it is for your credit rating.
Know what you want
Most people would start the buying process by visiting dozens of houses. House hunting can be fun. However, you first need to know what you want before you go out there and start looking at houses.
Sit down with your spouse and discuss what features you want in a house. How big of a house do you need? How many rooms do you need? Do you want a house with an updated kitchen? Do you prefer a house that is near your office? Make a list of features you want and discuss it with your real estate agent.