Buying a home can be both an exciting and stressful time for families. Most homebuyers spend a significant amount of time researching real estate information and looking at properties. If you will be looking for a new home in 2017, keep these tips in mind to help you get the most out of your home purchasing dollar.
Make Sure Your Credit Score Is Good
Financial institutions offer the best mortgage rates to borrowers with a credit score of 740 or higher. If your credit score is 620 or below, you will have fewer options for a mortgage. Get a copy of your credit score, and make sure the information is up to date. If you have any problems on your credit record, make sure they are resolved and that the corrected information is updated. Also, avoid making any large credit card purchases or take on any new loans while you are applying for a mortgage.
Choose an Affordable Home
Homebuyers tend to stretch a bit to purchase their first home, but you should always avoid buying more house than you can reasonably pay for on a month-to-month basis. The difficulty of coming up with a large mortgage payment each month can put uncomfortable pressure on a family’s financial resources. Keep your expectations in line with reality. If your income increases significantly in the future, you can always trade up to a larger home.
Look for No-Closing-Cost Mortgages
Financial institutions are competing aggressively for mortgage holders’ money and are offering benefits like no-closing-cost loans to draw in homebuyers. Look for these specials, which can save new homeowners thousands of dollars on their loans.
Be a Good Negotiator
Many homeowners have held off putting their properties on the market during the bad years of the real estate crisis. Many are now eager to upsize or downsize and will be open to negotiating the price or certain amenities in order to get the deal completed. If you are reasonable, you are likely to get a good reception for your offer.
Keep the Cost of Property Taxes in Mind
Homebuyers are always advised to look for a home in an area with good schools, transportation options and other amenities. However, you should also look at the amount of property taxes you will pay each year. Property taxes add a significant amount to your monthly payment, so make sure you know how much taxes will add to your mortgage obligation.
Interest rates are beginning to rise, which means you should make your move to purchase a house now rather than wait for a later date. If you have any questions, consult a realtor like The Clement Group at RE/MAX Properties, Inc. These tips will help to ensure the best home purchase possible, so you can enjoy the experience of having a place of your own.