Buying a new house is always a big step, not only do you have to worry about if you’ll end up liking it and if it will work for your family, but you have to consider the investment and where the economy is headed.
While there is no certain way to know what the next few years’ economies will bring, we do know that right now it is looking pretty stable. Here are some tips you can use when purchasing your new home — no matter of the state of the economy.
Check your credit
Your credit score is one of the most important factors in qualifying for a loan you can afford. If your credit score is less than ideal, we advise trying to clean up your credit at least six months before you start shopping for a house.
Buy a house under your budget
Just because your qualify or a $500,000 home loan doesn’t mean you need to buy a $500,000 house. It’s best to buy a house that comes in under your approved mortgage limit. Not only does this keep your monthly payments down each month, it also gives you some room if the economy ever worsens.
Amplify Your Down Payment
If you don’t have a down payment saved up, you may not be ready to buy a house. Experts say that ideally, you can at least put a 20% payment down when buying a house but you should at least put 10% down. Not having enough equity when buying a home could be that if you have to sell it fast, you will face a large loss.
To get started on shopping for your dream home, talk to one of our loan experts so you can make all the smartest choices.