The year 2014 has come to an end, It is time for a new beginning. It is the Time for welcoming new ideas which we can be implemented in 2015. As a potential home-buyer, what are your plans? Do you want to make important changes within yourself before buying a home? What should you do to experience a hassle-free home-buying experience? Let us begin with some New Year Resolutions which might be very much helpful for the new home buyers.
1. Credit Score boost up – Your credit score is the most important deciding factor while applying for a mortgage. So, At first oder your credit reports & check it carefully. If you find out any errors, communicate with the credit union for rectification asap. The next thing is to list up your old debts & pay them off.
Apart from that, it is good to avoid big pricey commodities. These includes assets such as building, furnitures or cars. These big purchases will generate larger debt & had a bad impact on your credit.
2. Save for down-payment – Very simple…most of the lenders will ask you to put 20% of your mortgage loan as down-payment. If you can’t put it, you’ll have to take the burden of PMI (Private mortgage insurance). Those who want to avoid this extra expense, try to start reducing optional expenses from the beginning of the year to save more. For example, reducing $50 from laundry bill will save your $600 a year.
3. Select a professional agent – It’ll take time to select a suitable real estate agent for you. But you can’t ignore the importance of a great agent. A professional agent can avail you the perfect home at it’s best price. But there’s mush possibility that you’ll encounter with a unreliable agent who will totally spoil the milk.So, you must choose a buyer’s agent who can provide sufficient proof of his expertise. Few recent testimonials from his previous clients can ensure his professionalism & sincereness towards the deal. Be sure to verify those references to be sure about they are genuine.
4. Get pre-approval – You will be totally ready when you come to know some major details about getting a mortgage loan. First you’ll need to research on the differences between conventional and unconventional loans. After comparing the terms & conditions, you can choose the right mortgage loan option. In addition of that, you must also need to know your payment capacity i.e.. how much you can afford to pay as monthly payments apart from your other costs.
5. Searching for a suitable home - Potential home buyers must do enough research before opting for a home. Don’t wait until you’re getting pre – approved. You can start from getting details in your neighborhood. Online real estate websites would be another popular method to find a huge number of homes as per your choice. The property must be chosen as according to facilities & traveling options.
Once you’re ready to shop for your dream home, you’ll get various new options & a better perspective to select homes according to your need. Try to follow those above given points as a new year resolution. If you are really thinking seriously to obtain a good home within your budget, prepare yourself & your finances.