How to Buy a Home This Year
If you are tired of renting and ready to make your move, now is the perfect time to buy a home. Housing prices are still affordable, interest rates on mortgages remain low and there is plenty of inventory to choose from.
Owning the roof over your head can be a dream come true, but it is important to make a plan before you make your move. You can buy a home this year, but the planning and preparation you put into the purchase will make a big difference.
Check the Direction of Interest Rates
The general direction of interest rates will have a direct impact on the interest rates mortgage lenders charge, so having that information can be a big help when buying a home. If interest rates are on the rise, locking in a low rate now and getting pre-approved for a mortgage could work to your benefit. If interest rates are expected to decline, waiting to buy could actually be a good move.
You can find information on interest rates and mortgage interest policies in the financial press, from traditional newspapers to modern websites. The more you know about interest rates, the easier it will be to time your home buying decision.
Research Local Neighborhoods
There is an old saying in real estate that you should buy the worst home in the best neighborhood, and there is a lot of truth to that strategy. Buying into an up-and-coming neighborhood, even if the home itself needs some work, could allow you to benefit from a future appreciation and ultimately make a profit should you choose to sell.
Make a list of Must Have’s and Nice to Have’s
Whether you are shopping for your first home or looking for something nicer than what you have, it is important to think about what you must have and what you would like to have. Separating your wants from your needs can make shopping for a home a lot easier, saving you a lot of time and potentially a lot of money as well.
You might like to have granite countertops, but if the price is right, butcher block may work just as well. You may crave hardwood floors, but if the home is perfect in every other way, a little carpet should not stop you from making an offer.
Set Your Budget and Factor in Interest Rates
If you want to buy a home this year, you will first need to determine how much you can afford to spend. It is important to set a realistic homebuying budget, one that includes not only the monthly mortgage payment but the cost of repairs and upkeep as well.
You can download and use The Directions Home Loan App (https://firstname.lastname@example.org) to estimate your monthly payment, but you will need three critical pieces of information to make it work. You will need to know whether you prefer a 15-year or 30-year mortgage, the price of the home, the amount of down payment you will be putting down, and an idea of what you.
You can do your homework and get the first three, but you will need your lender’s help to determine the interest rate you will likely have to pay. The interest rate on your mortgage depends on a number of factors, from the overall level of interest rates to your own credit score. Finding this information now can make your home buying easier, so be sure to check with your chosen lender.
Buying a home takes planning and preparation, and the sooner you get started the better off you will be. If you plan to buy a home this year or next, you will need to think ahead, and now is the perfect time to get started by contacting Direction Home Loan at www.directionshomeloan.com.