House Buying Prep 101

As sales slow down and mortgage rates fluctuate, now is a great time to start preparing yourself and your finances if home buying is on your 2023 bucket list. See the checklist below and make sure you’re on the right path when the right home comes along.

Industry pros urge would-be buyers not to expect mortgage rates to significantly improve until late 2023. It wouldn’t be too shocking if mortgage rates hit 7% between now and summer. Also, don’t expect home prices to find a bottom until early 2024. Here are a few must-dos and considerations to make as you prep to become a homeowner.

1. How much money can you cobble together for your down payment? Write it down.

2. Review your stash monthly and stay on track.

3. Set a realistic monthly principal and interest, property tax homeowners insurance and HOA assessment house payment budget; don’t forget to include utility bills.

4. Consider non-obvious sources for the down payment and closing costs. Some banks, for example, are providing generous assistance for low-to-moderate-income borrowers and specific areas of town. Local governments also are offering programs. Nonprofits and employers are also potential sources. Real estate agents and mortgage lenders may be able to contribute toward your settlement charges. Always ask.

5. Talk with a mortgage expert now to learn ways to optimize mortgage origination costs with respect to your down payment and FICO credit score.

6. Hide your credit cards. Stop spending but for true necessities. Major purchases such as cars and appliances should be delayed until after you buy a home.

7. Find neighborhoods you like. Consider issues like schools, crime rates, time and distance to your work.

8. Find a great real estate professional to make your real estate dreams come true.

If you’re looking to become a homeowner this year or next, it’s never too early to start looking and preparing. Want to examine your options more closely? Contact Metrowest today!