There's still snow on the ground in most of the country, and Punxsutawney Phil predicted a long winter this year.
But, if you're thinking about buying a home this spring or summer, the time to start getting your ducks in a row is now — before the busy spring real estate market starts heating up!
While looking at houses is fun, it's critical that you take these steps before you fall in love with that historic Victorian home or that newly-renovated ranch.
Here are steps you can take to get ready to make the big move.
Look at your credit score! If your credit score is in good shape, you can probably move forward. If your credit score is not great or it has taken a major hit in the past couple of years, you will need to do some damage control before you buy a house. Having a high and stable (or increasing) credit score will tell a lender that you're ready for this big financial move. You can always talk to a certified financial counselor through CommonWealth One for advice on how to boost your credit score and keep it high.
Have you saved up for a downpayment? You don't always have to put down 20% on the house of your dreams, but it looks good to lenders if you have some savings you can use toward your purchase. Do you already have that money tucked away somewhere? This would also be a good time to start researching first-time (and second-time or investment) homebuyer programs. These programs, available to a wide variety of people, can help reduce your closing costs and more.
Talk to a lender and a realtor! You don't have to make any promises or sign any contracts, but it's a good idea to set up an informational meeting with a lender and a Realtor. They may have a lot of advice to give you about the real estate market, how to get pre-approved for a loan and different loan types, pitfalls to watch out for and more. The information they provide will help you get the best home for you at the lowest possible price.
Research first-time (and second time) homebuyer programs. There are a lot of state and federal programs out there to help first-time homebuyers purchase a home. There are also programs for second-time buyers, investors, veterans, certain demographic groups and more. Some of these programs can help with closing costs, while others let you put 0% down on a home (which means you can use your savings for repairs and moving costs instead).
A good place to start all of this? CommonWealth One! Whether you're ready to meet with a Member Advantage Mortgage Loan Officer, need guidance from a certified financial counselor to review your credit and budget, or are looking for a trusted realtor—we're here to help. Give us a call or stop by a branch today!
Happy house hunting from your friends at CommonWealth One!
