New Year's Resolutions for Future Homebuyers

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When you think of buying a home, you typically think of saving for a down payment. However, one must also consider closing costs and money to be spent on possible repairs, remodels, and new furniture. Make sure to save for all of these expenses as well as your down payment.

Monitor your credit score

A good credit score increases your chances of getting approved for a good mortgage rate. You can use free apps like Credit Karma to perform soft credit inquiries which don’t put a ding on your score.

Pay off outstanding balances

Now is also the time to get your finances in order. Pay off or pay down any outstanding balances you may have, including credit card debt, auto loans, and student loans. It is also important to avoid opening any new lines of credit, such as an auto loan or a new credit card. Even unexpected necessities like creating a new phone line count as a credit inquiry, and will affect your overall score.

Identify your needs

Now that you’ve got your finances in order, it’s time to start thinking about what you’re looking for in a home. What neighborhood do you want to live in? How is the school district? Will you outgrow the home too quickly, or is there room for you to grow into it? Narrow down your needs and wants early to get a better idea of what you and your agent should be looking for.

Research financing options

There are many different types of loan options when it comes to buying a home, from conventional to FHA to VA loans. Schedule an appointment with a lender to find out which financing option is right for you.

Get pre-approved

Getting pre-approved is one of the most important steps of the homebuying process. It shows that you are serious about buying a home rather than casually looking, and that your information has already been verified by the bank. It’s important to get pre-approved before you start seriously searching for your dream home, so you’ll be ready to make an offer as soon as you find the perfect fit.

Find the perfect agent

You’ve saved for your home buying expenses, paid down your debts, raised your credit score, gotten pre-approved and found the perfect neighborhood. Now it’s time for the fun part- research local real estate agents who will help you find your dream home! Make sure to choose an agent who understands your wants and needs and who will best represent you and your family.