Use This Checklist To Get Prepared To Buy Your First Home In 2019
Now that you’ve decided to buy your first home in the new year, use this checklist to get your ducks in a row. Now is the perfect time to get a handle on everything you’re going to need before the house hunt begins in earnest.
From your first credit card to your last student loan, you have been gathering a credit history – and with it, a credit score. Ranging from 300 to 850, the higher your number the better when shopping around for the best mortgage rate. Check your credit score now and hope it’s above 740 as that could lend itself to landing you a lower mortgage rate.
Top Up Time
While you’ve already saved up enough for a down payment on your first home, have you thought about unforeseen costs? Now’s the time to bulk up that bank account for emergency fees, property taxes, home inspections and mortgage application costs.
Depending on the financial landscape each year, prime mortgage rates go up and down – for 2019, they are predicted to rise. Your rate will depend on a lot of different factors such as your overall debt load, value of assets, and length of mortgage. Look at current rates and calculate what monthly payments you could afford for your first home using an online mortgage calculator.
Lend Me Your Ear
Once you have an idea of what is doable, it’s time to shop for a mortgage lender to give you hard numbers. Your bank is a good place to start, as they will be able to recommend a company or an individual that they trust. Ask about first time home buyers plans or kickbacks, how long it will take to be approved, and what the fees will be.
After finding a mortgage broker that you get along with and who offers you great terms, it’s time to get pre-approved. When buying your first home, having a pre-approved mortgage means that you can act quickly when that perfect property hits the market. It may take some time to go through this process, so start gathering the documents now.
Since you’re gearing up to sign a huge financial deal, finding a real estate agent with whom you feel comfortable working with closely is important. The Klassen Team has over 30 years of combined experience, with an exceptional knowledge of the Fraser Valley. Contact us directly to set up a meeting to make sure you are happy with our team.
On this buying checklist there are also a few “don’ts”, which are things to avoid while hunting for for your first home. Avoid getting a new credit card, as it’s considered an existing line of credit and could be factored into your mortgage application. Don’t come up late on any other debt payments, and don’t change jobs; either one of these could hurt your chances of getting a loan.
When it comes to landing your dream home, having what you need in hand will help the process go that much smoother. With a bit of preplanning after going through this handy checklist, closing on your first home in 2019 will be a breeze.