Are you planning to buy a home in 2017? If so, you have probably already taken a couple steps to prepare. If you haven’t, that is okay too! We are going to discuss a few things that you can be doing now to get ready to buy a home. There is plenty to do to keep busy!
- Check your credit score. A credit score is a number that represents your credit report. FICO scores range from 300 to 850 and the higher the score the better. The better the credit score, the better the chances are that you will get a lower mortgage rate. If you credit score is not where you would like it to be, then start repairing it. Pay bills on time, limit unnecessary purchases, do anything you can financially to make sure you pay your credit card bill on time or even over pay it.
- Don’t open new credit cards. The holidays are tempting time for credit card holders. Almost every time you step up to check out at a store, someone is offering you a credit card. The savings sound great, but opening more accounts create more lines of credit. That credit line and what is borrowed, can change the application numbers and jeopardize your application. Also, don’t over spend during the holiday season and rack up more credit card debt.
- Suggest financial gifts. You are going to need to prepare for the down payment and also the closing costs and moving costs that are associated with buying a home. You should also consider setting aside money for unexpected repairs and costs. So instead of getting gifts this holiday season, ask your family to give you cash towards your potential new home. It will help in the long run.
- Keep tabs on interest rates. The Federal Reserve just raised interest rates for the first time yesterday. The Fed reported it was not to defer any business or person from taking out loans or spending more. They felt the economy could handle it. The rates are supposed to increase again in 2017, so you definitely want to start preparing to buy so you can avoid the interest rates rising anymore.
- Contact us! Before you start looking for a home, contact us to find out what you can afford. Our dedicated Loan Officers want to get your pre-approved before you even start looking so when you find the home of your dreams, you can buy right away. Learn more about getting pre-approved here.