It’s summer time and the home-buying market is heating up. Savvy buyers are looking to lock in attractive interest rates while they still remain low – the time to start preparing is now. These tips will help put you in a better position to find a home that’s just right.
Make your Checklist
First-time home buyers should take the time to determine what their needs are, especially regarding size, location and amenities. But even seasoned home owners will find that having a must-have list can save significant time by helping them avoid listings that may look great in the photos, but in reality, won’t meet their needs. Home buyers should always prioritize the items on their checklists, as most will need to compromise on some items to fit within a realistic budget.
Check Your Credit Score
Even if you’ve purchased a home in the past, stricter credit requirements are making it more challenging for some buyers to find home loans. Lenders are more cautious than ever, so having a favorable credit score can make a difference in your ability to be approved for a loan. Even if you think nothing has changed recently on your credit report, it’s good to check periodically to ensure you aren’t being unfairly penalized for old debts, which can sometimes linger on credit reports. Borrowers with scores in the low 600s and even high 500s can still find lenders who will qualify them, but borrowers should strive for scores in the mid- to upper-700s to land the best rate.
Determine What You Can Afford
Don’t let your maximum loan approval amount dictate what your home-buying budget should be. Though the approval process is more extensive now than it was even just a few years ago, lenders still want to make as much profit as possible. You, however, are the best person to judge what you can realistically afford. Experts say that your total monthly home expenses should not exceed more than one-third of your gross monthly income. You’ll also need to determine how much you’ll need in order to cover any loan fees and closing costs.
Sell Your Current Home
If buying a new home is contingent on the sale of your current home, it’s a good idea to start the process by reaching out and consulting with your realtor. Ask him or her about your best strategy to sell your home quickly, but at the right time and for the best price possible. You’ll want to identify any maintenance issues your home has, and determine if, how and when each one will need to be addressed. You can also ask your realtor if making any upgrades to your current home would be worthwhile and result in a favorable return when it comes time to sell.
Attend the HBA Parade of Homes
Fifteen beautiful homes will be on the HBA Parade of Homes June 17-19 and June 24-26. This is the perfect opportunity to see what is currently on the market and visit with builders. This year, six of these homes are currently for sale, seven are custom homes, one is a model home and one is the St. Jude Dream Home. But don’t worry – it you fall in love with a home that has already been sold, the builder would love to visit with you about building a home just for you!
The HBA Parade of Homes is June 17-19 and June 24-26. Homes are open 1pm-6pm each of those days (with the exception of the St. Jude Home – it will be closed on June 26th). Tickets are only $5 to see ALL of the Parade Homes. Log on to HBAParadeHomes.com for more information.