As 2021 closes and we step into a new year, it is time to reflect on what we have accomplished, so far, and what we are yet to accomplish. If buying a new home is part of your goals in 2022, include the following in your resolutions to make the home-buying process easier for you.
If you are a first-time homebuyer, give yourself enough time to plan and improve your credit. Also, take some time to put together a down payment before you shop. Plan in advance as it might be difficult to get a mortgage if you wait until the last moment.
Planning closing costs, budgeting for monthly expenses afterward, down payment, etc. take a lot of time. In the current scenario, boomers prefer to stay put in their houses and there is a downfall of new development in the starter-home sector, which means that available inventory will be low in the market.
As we approach 2022, here are a few resolutions for first-time homebuyers:
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Your financial status
If you are planning to get a mortgage, save at least 3% to 20% for your down payment as well as keep in mind that you will have to cover another 1% to 3% of closing costs. For your resolution, think about how you will come up with this amount to qualify for the mortgage you’re aiming for. You can think of taking up a side job, cutting down on unnecessary expenses, etc. to save money for your down payment.
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Your credit scores
Keep a track of your credit score. If your score needs an improvement, make it your new year’s resolution to improve the score as credit score is a vital part of any home-buying process. If your score needs to be improved, you need to work on what should be done to improve the score.
Some credit scores will need you to make a few extra payments for a start, while others might need you to take a pause on your credit card spending.
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Clear off any existing debts
If you have any existing debts, make it your new year’s resolution to pay them off. Next, you need to have a clear understanding of your expenses and income before you set out to buy your new home. This is also important when you apply for loans to show that you have a good history of paying off debts on time.
You will need preapproval for your loan by a lender before you begin your home hunt. The preapproval letter will get you an estimate on how much you will be able to afford. Before you find a realtor, find yourself a lender and get a preapproval letter to understand what you can spend. Keep the following financial information ready before you meet your lender:
- The cash you can put down
- Details of your income
- Your total monthly debts
- Credit score (and also include details of any credit issues that you have faced in the previous years)
Also, if you are planning on making any large purchases, such as buying a car, hold off for the time being as this can impact your credit score.
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Real estate agent
If you are looking for a home for sale in Lincoln, our team at Location Lincoln can assist you. We have been offering real estate services for a long time now and have helped many clients to buy the home of their dreams.
As discussed, it is always ideal to get a preapproval letter from your lender before you embark on your home-buying journey. However, we are always open to meeting with you early on to help you in every possible way.
We will walk with you at every step of your home-buying process as we know this is the biggest decision and investment of your life. We can also advise and provide recommendations on mortgage lenders, home inspectors, and attorneys and make the process smoother and easier for you.
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Make the next move
Once you find your dream home, don’t wait too long to close the deal. There might be others who liked the home and made an offer immediately, and you will lose the property you wanted to buy. So, lock the deal immediately if you like the home.
Buying a home, as a first-time homebuyer can be challenging and time-consuming, and might put a lot of pressure on you. Enjoy the process while it lasts.
If you have decided to look for a new home in 2022, we can help. Location Lincoln has helped many clients to find the home of their dreams. Contact us today for a consultation.
