Getting Ready Buy: Now is the time to make that investment in your next home.
Mortgage rates are down again and housing is at its most affordable.
Mortgage rates, which began to climb on November 2010, have reached a back off point, declining to 5.125% for a 30-year fixed rate loan, which is a bit lower than the national average. The question is, should you buy now? Probably, yes. Housing affordability is at its highest now. Here are some tips to make the buying process easier so you can enjoy your new home.
Work on you finances. The best mortgage rates go to people who have high credit scores with little debt. Check those scores and correct any mistakes. Save, save, save! Cash is king here. The bigger your down payment, the better off you are. Look to your financial future too. Have enough of a cushion that you can handle any repairs, maintenance or life’s surprises that may come along.
Investigate mortgages. Don’t haul out those paint chips just yet. Instead, begin shopping around for the mortgage that’s right for you. Pre-approval will show you are a serious buyer. When you go for pre-approval, the lenders will check your credit score. In some cases those checks can reduce your score a bit, but if all are made within a 45-day period, most likely that won’t affect your score.
Find the perfect real estate agent. Now’s the time to choose a qualified real estate agent who will work for you and with you. Check the agent out online, ask friends for referrals and schedule a personal interview. The agent you choose should be familiar with the specific area you want to live in, and willing to show you homes within your price range. Personality makes a difference too. If you feel there might be a conflict, move on to another agent who fits your style better.
Decide what you want. Sit yourself down and have a good chat with yourself to determine what type of home, where you want to live and what you are willing to do after you move in. Do you want a fixer-upper or a property that is move-in ready?
Do you want an older home or one that is brand new? Each has advantages, but again think hard about maintenance and your capabilities. New homes come with a builder’s warranty and the smart seller of an older home will have purchased a home warranty that can be transferred to the buyer.
How green is your garden? Decide what your perfect lawn is and how much time you are willing to allocate for outside maintenance. Some buyers want the absolute minimum in lawn maintenance. Others love huge lawns and lots of flower beds. Think weeding. Be very honest about the yard. If you’re really a minimalist but see a beautiful lawn and flowers in your head, you may end up with a considerable burden if you choose the expansive option.
Ok, now you can get out those paint chips and begin making your next house yours.