If you are planning on buying a home this year, here are some New Year’s Resolutions for you to consider. If you can get ahead of the game, it will make for a happier, smoother transaction.
Step #1 for buyers is to find the right real estate agent. At Angels RE Group, our top priority is our clients. We pride ourselves in giving excellent service to all of our clients. We have an exceptional team around us to ensure that each transaction goes as smoothly as possible. This team includes: mortgage professionals, title companies, inspectors, various repair technicians, home stagers, property managers, and more.
3 Resolutions for Home Buyers in 2014
1. Meet with a Mortgage Professional to get Pre-Qualified (and outline debt reduction and credit score plan where necessary) – This step is probably the most important. Get your ducks in a row before starting your home search. Meeting with an excellent loan officer will help you discover what price range to stay in when looking for your next home. Your loan officer will factor in things like down payment, taxes, homeowner’s insurance, and HOA to make sure that your monthly payment is well within your comfort range.
Many buyers who will be looking to make a real estate purchase this year are coming out of the near-universal financial crises of the recession. You might have had a past bankruptcy or foreclosure, or a job loss, which interrupted your income temporarily, causing a few late payments which brought down your credit score. Financial goals like reducing or eliminating credit card debt generally fall into the top 10 resolutions set by Americans at large, and this goal is even more prevalent among home buyers to be. Don’t go overboard and make moves that can make it harder to qualify for a home loan, like closing out all of your credit accounts or leaving everything with a zero balance.
2. Save Money for Your Down Payment – One of the first questions that home buyers ask is, “How much down payment are we going to need?” Unfortunately, there is no standard answer. Down payments will vary from 0% (with a VA–Veteran’s Administration loan) to upwards of 25% (with certain “non-conforming” loans). FHA loans, a popular first-time home buyer loan, currently requires 3.5% down payments. As an average, most home buyers make down payments in the 5%-15% range, although your own personal situation may dictate more or less down payment. When you are factoring money for a down payment, don’t forget about closing costs, which will total in the 3-5% range, payable in cash at the time of closing.
3. Make a List of 5 Must Haves for Your New Home – When envisioning yourself in a new home, what are the things that you cannot compromise on? Do you want to be in a certain school district? Do you need a single story home? Pool? Proximity to work? A mother in law suite? A lock and leave vacation home? Make sure you keep these top of mind as you plan so you don’t compromise on something that is a top priority. Provide this list to your realtor. It will be the information that enables them to find you the best home in the perfect neighborhood.
We invite you to read some additional tips we have for all of our home buyers to help you in this process. Contact the Angels RE Group to start your information gathering and home buying adventure. You can reach us by phone at 602-206-8270 or email at info@AngelsRE.com.
