As you enter the holiday season, do you wish you were in your own home? What if by this time next year, you could stop renting, become a homeowner and enjoy decorating for and celebrating the holidays in your very own house? Check out these steps you can take between now and then to make your holiday dreams of homeownership a reality next year.
Get Your Finances Figured Out
Another step to take before house hunting is to make sure your finances are in order. Request a credit report so you know where you stand--your credit score will be a big factor for lenders approving your loan and determining your interest rate. Take stock of your credit cards, student loans and other debts and pay off as much as possible before beginning your home search, so you are better able to afford the home you want. Also, avoid accruing more debt in the year prior to your home purchase.
Make a Wish List
Before you start looking at houses, take stock of what aspects of a home are important to you. Make a list and divide it into two columns. In one column, write down necessities (like number of bedrooms, school districts, etc.) and in the other, write down your wants and wishes (yard size, flooring treatments, granite countertops, etc.). Once you have an idea of what you need and want in a house, it is easier to shop.
Educate Yourself on Your Options
The next step is to find out what you are likely to qualify for by shopping around with lenders to see who will give you the best rates and the best service. Getting prequalified for a loan is not the same as preapproval, which is when a lender checks your credit and reviews your documents to determine if you could qualify for a specific loan amount. But prequalification is still valuable because it can give you a good idea of the price range you should be looking in. Don’t let the lender tell you what you can afford to own, though. Think about your budget and decide what you are comfortable spending to remain financially secure in the future.
And as you’re talking to lenders, make sure you ask them how our NC Home Advantage Mortgage™ (with down payment assistance of up to 5 percent) can help make home ownership even more affordable. Check out our preferred loan officer list to find one in your area who offers our mortgage products.
Start Saving for a Down Payment
Saving for a down payment is often the largest hurdle to home ownership. While there are many down payment assistance programs out there, including our own, it’s still a good idea to be saving as much as you can since the more you are able to put down, the lower your monthly payment will be. For tips on how to save for a down payment, check out next month’s blog!
Reach Out to a Real Estate Agent
Now that you have laid the groundwork for your home purchase, it’s time to get serious and reach out to a real estate agent to find your dream home. Real estate agents know the area and can help you find what you are looking for at a price that won’t break your budget. To help with this process, the NC Housing Finance Agency offers a list of preferred real estate professionals that have in-depth knowledge of our mortgage products.
With proper planning, you could find yourself fulfilling your dream of a home for the holidays next year.
