New Year’s Resolution: Buy a Home
Happy New Years!!
If you’ve been thinking about buying a home, 2010 is a great year to do it. Home prices are down, there are a lot of foreclosed homes poised to hit the market soon, and the buyer’s credit has been extended through the end of April.
The first step is to inspect your credit score. Even if you’re not buying a home soon, this is still something you should be doing on a yearly basis. Mistakes on credit reports aren’t uncommon, and they might be making a huge dent in your score. Look for any areas that need improvement, pay off old debts, and keep making regular payments. You want your credit score to be the best that it possibly can be, before you approach a lender.
Start thinking about what you want or need in a new home. Are you looking for a recently updated kitchen, a backyard, or nearby community features? Put together a wish list of what you absolutely need and what you want. Start looking online for homes, paying special attention to what the homes cost in different neighborhoods and with different features. Don’t worry too much about specific homes at this point; you’re just trying to get a feel for the market. However, if you find a home that matches your wish list, and your budget, contact an LA area Realtor.
Take a close look at your budget. Lenders plan 33% of your income towards mortgage payments, as an absolute maximum. If a third of your income isn’t enough for mortgage payments, you need to start making more, or consider less expensive homes. You can always trade up to a better property later on.
At this point, you’re ready to contact a real estate agent to start actually looking at homes. You also need to start contacting mortgage, and comparing to get the best loan with a lender you feel comfortable with. Try to get pre-approved for a loan. You’ll know exactly how much home you can buy, which can help you to narrow down your list of possible properties.
This process can take several months, depending on your credit rating and the homes available when you begin your hunt. You might find the perfect home your first time out, or it may take you a while.
If you want to buy a home this year, get started today. Checking your credit score only takes a few minutes, and it can be the first big step on the road to becoming a new homeowner.
Have a great 2010, everyone!