5 New Year Resolutions for Homebuyers in 2022
Do you plan to buy a new home in 2022? A house is the biggest investment that you will ever do in your lifetime. Here are some New Year’s Resolutions, which will help you to get yourself ready for purchasing your new home in 2022.
- Save enough money for the down payment
House prices have skyrocketed, and you need to make sure that you have enough money to pay the down payment. This will help you to stay away from going for a high-ratio mortgage. It is a good idea to have a down payment amount of at least 20%. You can look for all possible options to save enough money so that you will be able to proceed with making the down payment without a struggle.
- Take a look at the credit score
A credit score will verify the ability you have to pay back your loans. You need to have an Equifax credit score of at least 690 to proceed with buying your home. On the other hand, you will also need to take a look at the debt-to-income ratio. It is one of the biggest factors that determine the ability you have to buy a mortgage.
- Get a better credit score
If you have a good credit score, you can save a lot as you buy a new house. There can be mistakes you have done in the past such as forgetting to pay a bill. Such situations can create a major overall impact on the credit rating. This is where you should seek the assistance of a credit repair specialist and see if you can make your credit score look good.
- Get a pre-approval for your mortgage
Mortgage interest rates are expected to increase later in 2022. Therefore, it is a good idea to get a pre-approval for your mortgage. Along with the pre-approval, you will be able to lock in the interest rate for 120 days. When you have it, you can keep the peace of mind and look for a new home to buy. You can call this pre-approval a commitment that you put to buy a new mortgage at the agreed rate. Hence, there is no need to worry too much about not being able to afford the new house.
- Hunt for the house
You are now good to go ahead and start searching for a house. This is where you can start online. Just keep the preferred budget and neighbourhood in mind and start going through the lists online. You should also take a look at your personal preferences to get hold of the best house that matches your preferences.
Focus on these tips and get yourself involved with a reputed real estate investor to stay away from the hassle of buying a new home.