Home Builders Association of Dayton
The new year will soon be upon us, and you’ve decided: 2019 will be the year you’re going to purchase a new home. Whether you are a first-time buyer or a move-up buyer, the sooner you start preparing, the better. By following these simple tips, you’ll feel confident and ready to get out there and find the perfect home for your needs. time to write down what you need in a new home will save you a ton of time in the long run.
Instead of sorting through listing after listing, you can narrow them down significantly – and decrease your stress level – by knowing what your must-haves are. It’s equally important to be smart about prioritizing your list and keeping an open mind, especially when it comes to the smaller
Credit requirements have become stricter in recent years, making it challenging for some buyers to find home loans. Having a favorable credit score can make a huge difference in getting approved for a loan. Even if you think nothing has changed on your credit report, it’s smart to check anyway. Federal law allows you to get a free copy of your credit report every 12 months, and it’s smart to do so to be sure all information is correct and up to date. A site like AnnualCreditReport.com can assist.
Make sure you are not being unfairly penalized for old debts, which can sometimes linger on credit reports. Borrowers with scores in the low 600s and even high 500s can still find lenders who will qualify them, but ideally you should strive for scores in the mid-to upper 700s to land the best rate. Also, refrain from opening any new credit cards in the months leading up to your purchase. This can be particularly tempting around the holidays, but it could hurt your chances of getting a mortgage considerably.
Don’t let your maximum loan approval amount dictate what your home-buying budget should be. You are the best and only judge of what you can safely, realistically afford. Many experts advise that your total monthly home expenses should not exceed more than one-third of your gross monthly income. Don’t forget to determine how much you’ll need in order to cover any loan fees and closing costs and include that in your final budget. You can find mortgage calculators online that may help you plan a budget for your mortgage.
If buying a new home is contingent on selling your current one, it is a good idea to start by reaching out and consulting with a Realtor. You probably want to sell your home quickly, but keep in mind that if you want to get the best price possible, it is critical to put it on the market at just the right time. The Dayton Area Board of Realtors – DABR. com – is a fantastic resource to find a Realtor.
In the meantime, you can work on any maintenance issues your home may have and make a plan for when, how and if each one will be addressed. You might be surprised by how much even minor fixes can change how a potential buyer sees your home.
Ask your Realtor if investing in any upgrades to your current home would result in a favorable return when it comes time to sell, and then get to work. If your home needs assistance from a professional, visit the Home Builders Association of Dayton’s website, HBADayton.com, to find professionals to help you with any needed repairs or replacements.
Last tip: Try to enjoy the process as much as possible during this exciting time.