New Year's Resolution - How to Buy Your Dream Home
The New Year marks a fresh start and the best time to set ambitious goals and resolutions for the year to come. Aside from trying to lead a healthier lifestyle or save money, you may be making steps to purchase your dream home in 2020.
Last year, Statista estimated there were around 6 million home sales, a figure that is projected to increase to 6.12 million during 2020. Chances are, you could be one of the millions of families or individuals looking to buy!
Now is the perfect time to write down some New Year's resolutions that will set you up for future success and streamline the home-buying process. The experts at Own It Home Loans are here to help you identify the eight things you can do to make buying your dream home a reality in 2020.
1. Decide your budget
If you're determined to move this year, one of the first things you need to do is set a realistic budget. Not only will this help the rest of your planning fall into place, it will also focus your search on houses within your budget. Lifehack recommends looking at listings online to see what you like and how it could influence your budget. Also, leave some wiggle room for the added expenses that will come after a housing purchase, like furniture and maintenance.
When you're setting a budget, you'll also want to break down what you need in a home versus what you want in a home. At this time, your dream home might not be in your budget or in a feasible location. Create a list of what you need in a home and things you want, but could live comfortably without. Again, everyone has a different vision of an ideal home, but setting realistic expectations and a practical budget allows you to accomplish your goals quickly.
2. Set a goal
Like with any resolution, you should set some deadlines to make sure you're able to move into your dream home on time. Do you want to save enough money for a down payment? Do you want to move before the new school year? Everyone's goals will differ, but setting realistic deadlines will help you stay motivated to reach them. This being said, don't be too hard on yourself if you don't make your goal right away. There might be surprise costs or life events on your path to buying your dream house that will force you to pause. While it's impossible to factor in these "what-ifs," be aware they can happen.
3. Pay down principal
Getting serious about paying down your debts is one of the most effective ways to prepare for purchasing your dream home. The best practice is to begin paying off your debts with the highest interest rates first, explains MSN. Also, consider paying off credit lines that are close to their limit and begin taking advantage of tools like automatic payment scheduling.
4. Get to know your investments
Do you have investments? If so, when's the last time you took an in-depth look at them? According to Money Crashers, many homeowners have investments in property or assets that they actually know very little about. Take a look at where your money is invested and how it is affecting your current financial situation. While you shouldn't make any drastic changes to your finances before applying for a loan, this can be your opportunity to cut loose any investments that may not be doing much to help your current situation.
5. Check your credit
When applying for a loan, lenders immediately want to take a look at your credit score. This score is indicative of how reliable you are with making monthly payments and determines your debt-to-income ratio. Make sure to thoroughly evaluate your credit report for any surprises (and disputing them if you find them). If your credit needs work (Experian reports a score of 700 or higher is best) start improving it by paying off your debts and making every payment on time.
6. Hold off on big purchases
In line with keeping your credit score high, it's best to hold off on making any big purchases that could affect your finances before applying for a loan. You will want to save money anyway, so you might have to wait on taking a big vacation or purchasing a new vehicle until after you're settled into your dream home. If you do have money to spare after saving and paying off debts, try to reinvest in your current home so it will sell faster. You can't go wrong with adding new garage doors or energy-efficient windows and doors, explains TheStreet.
7. Save money where you can
Similarly, start making small changes that can help you save money to put towards a down payment. Making coffee at home and packing lunches are sure-fire ways to save a couple hundred dollars a year if you're in the habit of eating out. CNBC also points out how helpful technology can be for saving money. Downloading store apps can give you access to exclusive coupons and deals, and free budgeting tools can help you be more aware of your spending habits and make positive changes.
8. Work with Own It Home Loans
If you want to close a home quickly and painlessly, work with Own It Home Loans. Our unique underwriting approach removes many of the common roadblocks buyers encounter when applying for a home loan. While most lenders take over 30 days or longer to close, our expert lenders can close our loans in as little as 14 days.
- Commitment to close.
- Commitment to convenience.
- Commitment to communicate.
With a wide variety of innovative products available. you're sure to find a loan that fits your needs. Our knowledgeable staff is always available to meet you in person, so you'll have a friend through the process, not just a loan officer.
Contact us today to get started on closing on your dream home quickly and painlessly.