If you think May and June are hot months to buy a home, you’re right! The weather’s warmer, the days are longer, which leaves more time for house-hunting. If you are thinking of buying a new home, here are 5 tips to help you.
1. Get your credit in shape
If you plan to finance your home purchase, check your credit history. Especially, if you’re a first-time buyer. You’ll want to correct any errors and take measures to boost your credit score.
One buyer I worked with was able to drop her interest rate from 5.5% down to 4.25% after improving her credit score.
2. Get pre-approved for a mortgage
Before you begin your search, meet with a mortgage lender who will take a look at your credit history, your savings and investment statements and your current financial situation, and give you a better idea of what you can afford, as well as what financing options are available.
3. Establish your budget
Whether you’re financing your purchase or paying cash, it helps to determine your budget so you can focus on homes within your price range.
4. Make a list
Buying a home is a process of elimination. Not a process of selection. Make a list of your ideal home’s must-haves and deal breakers. This way, you’ll be able to narrow down your search and find a home that fits your current and future needs.
5. Think about resale
The average homeowner lives in their home for nine years, according to the National Association of Realtors. While you may buy your home as a long-term investment, keep in mind that you’re likely to sell it one day. So consider resale value when you’re looking at properties.
