5 Smart Moves Home Buyers Should Make Now

For the past three and a half years, the 30-year, fixed-rate mortgage hasn’t dropped below 6%. This has resulted in many people holding off on purchasing one of the Grand Forks ND homes, as they wait for lower rates. In recent months, rates have been hovering right around the 6% mark and on February 26, rates finally dropped to 5.98%. While it may not be a huge drop, it’s enough to cause people to finally take the plunge and purchase a new home. If you’re ready to purchase a new home, there are six important steps to take now to ensure you’re properly situated to take on the spring rush of other buyers.

1. Pre-approval
   One of the most important things to do is get underwritten pre-approval for a mortgage so that you know exactly how much you can borrow. As well as having a clear view of your financial situation, it makes sellers feel more comfortable knowing you’re approved and the sale is less likely to hit any unexpected snags.
2. Realistic Affordability
   While you may qualify for a certain amount, make sure you can realistically afford it. Have a clear understanding of your household budget, not just in terms of mortgage payments, but also factoring in school, vacations, retirement, hobbies, and other costs that are important to you. This helps you make sure you don’t spend more on your home that you can comfortably afford.
3. Check Credit Scores
   While a credit score of 620 is creditworthy, you ideally want to have your score at 760 or higher for the best chance of getting an affordable interest rate. If you’re a first-time home buyer, you should also look into down payment assistance.
4. Keep Finances Steady
   Once you’re pre-approved or locked into a mortgage rate, don’t make any big financial moves. This includes moving money from one account to another, opening new credit lines, and making big purchases. Otherwise, you run the risk of delays or even changes in your approval due to potential lower credit scores and increases in debt to income ratios.
5. Be Prepared
   Do your research before you start seriously house hunting. Make sure your finances are healthy, gather all of the necessary paperwork, and make sure you include closing costs, home insurance, property taxes, and even mortgage insurance if you don’t have the 20% to put down on your new homes. You should also start looking for a real estate agent, lawyer, mortgage broker, and home inspector so you can move quickly once you are ready to seriously start your house hunt.

Having a clear understanding of your financial situation and being prepared for the various steps involved in purchasing one of the Grand Forks ND homes will ultimately make it easier to find your ideal home. If you’re ready to act, reach out and contact Crary Real Estate today and start the search for your brand new home.

Categorised in: 5 Smart Moves Home Buyers Should Mak, Finance Tips, New Home Tips, Uncategorized

This post was written by Crary Real Estate