Now is the perfect time to “warm up” for the house hunt so you can be ready in the new year. The prep work is basically the same wherever you are looking.
- Check your credit score
The higher the score the better. FICO scores typically range from 300 to 850. If your score is 740 or above, you’ll get the best interest rate on a loan. A lower rate can lead to saving thousands of dollars in a year. If your score is less than this, start repairing it now. Start paying your bills on time, correct any errors that may be on your report, and get your credit limit raised. You should only use 30% or less of your total available credit and not max it out every month.
- Don’t open new credit cards
As tempting as it gets to open a new credit card to save at the checkout, resist! Opening a new card may hurt your chances of getting a mortgage or even getting the best rate on a loan. What could save you a few dollars right now, could cost you way more in the long run if your mortgage payments end up higher.
- Suggest financial gifts for the holidays
Along with a mortgage loan, you will need a considerable amount of cash to buy a house. There are closing costs, a down payment and moving costs. Also, you should set aside money for unexpected costs and repairs.
- Interview potential real estate agents
You owe it to yourself to show around for the perfect agent. Make sure they are not new or unaware of how to do a specific transaction. The end of the year is typically a slow time for agents, which can lead to them being more […]