While buying a home can be an incredibly exciting process, it can also be a very stressful time, and the amount that needs to be done to close the deal can oftentimes become overwhelming.
However, by understanding how to ensure you buy a home in the proper manner in 2019, you can set yourself up to live in an amazing home that is affordable, without being weighed down by unexpected costs and all that the process of buying a home entails.
The following are the five most important things to know when it comes to purchasing a home in 2019. Every year is different when it comes to home buying, and understanding what to expect can help the process go smoothly.
Determine Your Budget
The first step towards buying a home in 2019 is establishing your budget. Homes can often seem expensive, and it can be difficult to determine your budget without knowing how.
The best rule to follow – although there are other ways to determine how much of a mortgage you can comfortably take out on a home – is to stay within or just above three times the annual salary of you and your spouse.
For example, if you and your spouse make a combined yearly salary of $90,000, then you can likely afford a home around $270,000.
Check Your Credit
There are many factors that are considered when getting approved for a home – your credit score is most certainly one of them.
Be sure to check your credit score on a reputable website and make efforts to improve any credit score below 620.
It is important to check your credit early to avoid any unexpected bad news when being approved that could have been avoided.
Consider The Down Payment
Establishing a realistic, long-term budget and verifying your credit score is where it needs to be is a great first step. However, it is important to plan for the down payment as well, which is generally between three percent and ten percent.
By preparing for the down payment, you can avoid being stuck in a tight financial situation after purchasing a home.
Budget for Interest Rates
Mortgage rates have risen over the past few years, and the trend is expected to rise in 2019. It is important to plan for the rising interest rates and purchase at the right time.
By waiting too long to purchase a home, you are at a greater risk of paying more on your home due to increased interest rates.
Plan for Additional Costs
There are always additional costs involved with purchasing a new home, including appraisal fees, inspection fees, and various closing costs.
Make sure to plan for all additional costs by discussing everything that is needed beforehand with your real estate agent, who can provide a list of possible additional expenses.
A real estate agent should be able to help guide you throughout the entire process, ensuring everything is properly planned for and all goes smoothly.
EXIT Realty Bob Lamb & Associates is Murfreesboro’s most innovative real estate team.
EXIT Realty Bob Lamb & Associates
2630 Memorial Blvd, Murfreesboro, TN 37129