As one of the largest financial decisions in a person’s life, buying a home requires discretion, sensibility and budgeting. The following tips will keep you on the right path as you look to buy your first home. Why wouldn’t you want to set yourself up for success.
4 Ways to Set Yourself Up for Success
1. Keep score
The higher your credit rating is, the better your mortgage terms are going to be. A good credit score can help you save tens of thousands of dollars over the life of the loan. Start reviewing your credit a few months before you apply for a mortgage. If you have a score in the 600s or lower, start paying off credit balances to 30 percent or less of your balance. Also make bill and debt payments on time – no later than 30 days after the due date. If you have a score in the 700s or 800s, be sure to maintain and protect your good credit. The slightest credit misstep could cause a strong credit score to plunge more sharply than a weak score.
2. Consider all costs
The cost of a home is just the start, and smart buyers tighten their belts prior to buying to meet the monthly and yearly financial demands of homeownership. When you purchase a home, you’re responsible for paying principal and interest, taxes and insurance. Additionally, you will have to cover expenses including utilities and perhaps homeowner association dues. You’ll also need cash on hand for the upkeep and repair costs that are included in any home. The average homeowner spends 1 percent to 4 % of a home’s value on property maintenance each year, in accordance with U.S. News & World Report. Anticipate to pay for repairs or maintenance even within the 1st year of owning your house.
3. Be flexible during your search
Homebuyers who distinguish between wants and needs make the most sensible decisions. A list of must-haves ought to include items which affect your quality of life, such as a home’s location, its price, number of bedrooms and square footage. You have to be prepared to concede nonessential items, including views and extra rooms, if you locate a home meets your must-haves and is within your budget. Being flexible also involves adjusting your criteria as the home search progresses. For instance, your budget may require considering a town house as opposed to a detached home, or purchasing a fixer-upper so that you can live in a better neighborhood.
4. Keep your cool
Avoid getting overly excited in your search, particularly in markets where homes are selling quickly. A bit of self-restraint prevents you from overspending or selecting a home which doesn’t fully fit your needs. Be prepared to walk away in case a home inspection reveals more defects in the home than you can actually deal with. Also, keep calm if you find yourself in a bidding war. Nick & Cindy Davis can assist you in making the most competitive offer, and in case it doesn’t get accepted then we can help you in finding the next great option. Finding the right home that fits your lifestyle and budget can take weeks or months. By starting early and being patient, you’ll avoid the feeling of urgency that often drives homebuyers to make hasty decisions.
Don’t do it yourself. Let Nick & Cindy Davis with RE/MAX Premier Group agent guide you every step of the way. We are always just a click here away. Or if you prefer you can always call us at 813-300-7116.