You’ve probably heard the saying before, “there’s never a good time to buy a house.” So why is now the right time for you? Is it because you owe more than your home is worth and are now stuck in an upside-down mortgage? Or maybe you think that there isn’t any money left over each month to save for a down payment? While these are valid concerns, they’re not reason enough to put off buying your house. In fact, there are many good reasons why this year should be the year you take the plunge into homeownership.
Whether you’re ready to buy or just beginning your search for a home, let’s look at five steps that will help you get to homeownership sooner rather than later.
Know Your Credit Score
The more money you have available each month after paying your bills, the easier it will be for you to qualify for a mortgage. Plus, if your credit is in good standing, which simply means that you pay your bills on time every month, you’ll get a better interest rate on your mortgage which means you’ll pay less for your house.
To get an idea of what your credit score is, check out this government website to see how it’s currently being reported by the three major bureaus: Equifax, Experian, and TransUnion.
Monitor Your Credit Score
Since it’s free and takes little time to do, check your credit score every four months or so. Experian recently updated their credit monitoring service, where they’ll send you a notification when there is activity on your credit report.
Do Your Homework
As with anything you buy, it’s important to understand what the product is and how it works. When buying a house, you should carefully consider such things as what type of heating system is in the home, where the electric panel is located, if there’s adequate space for your belongings, etc. Knowing these types of details now will save you from making costly mistakes later on down the road.
Pick A Mortgage And Stick To It
Mortgage rates are constantly fluctuating, which can make it difficult to choose between fixed-rate and adjustable-rate mortgages. Talk with a local lender to get an idea of what will work best for you.
Be Realistic About Your Budget
Getting pre-approved for your mortgage is one place where you should overshoot your monthly payment if at all possible. Pre-approval will let you know how much you can spend on a home so that when you start shopping for one through Compass, you won’t get caught up in the moment and go over budget.
Not everyone is ready to buy a home right now. Or maybe you want to stay flexible for as long as possible so that if things don’t go your way, you still have several years to get your house. Regardless of your reasoning, there’s no doubt that the spring and summer months are some of the best times to buy a home because you’ll be competing with fewer buyers in a better market.