Now that the new year is upon us, many people have set big goals and are working to achieve them. If one of those goals is to purchase a new home in 2019, here are 5 tips to set yourself up for success.
1) Do your Research
The right websites, magazines and newspapers have valuable real estate listings that can give you the pulse of a specific real estate market. If you pay attention, you can pick up on things like pricing, changes in asking price, and how long listings stay on market. The earlier you get started, the more defined the trends will be!
2) Determine How Much House you Can Afford
There are many valuable tools online that help calculate how much you can spend on a mortgage each month. The general rule of thumb is to look for houses no more than five times your annual household income. The beginning of the new year is also a good time to start saving. Average offers expect about a 20% down payment at the time of purchase.
3) Talk to a Lender
Talking to a lender early will allow you much more negotiating power when you need to move on that perfect home. Prequalification for a mortgage is the first step in the financing process, and all that a lender needs are your income, savings and investments. The later stage would be getting preapproved for credit, which will require more specific financial documents.
4) Manage your Debt
If you are planning on purchasing a house in the new year, it is important that the household does not incur any more deb. This way, your credit score will be as pristine as possible. If a new home is on the horizon, it’s a good idea to start chipping away at existing debt. Also, it might be useful to think carefully before investing in a new car or opening another line of credit.
5) Find the Right Real Estate Agent
The right real estate agent is going to make all the difference when it comes to finally tracking down the home of your dreams. A good agent will have insight on all of the topics mentioned previously, as well as a few more ideas on how to properly prepare. Whether you are looking for advice, or have already checked the boxes, give Greene Realty a call to get the new year started off right.