How to prepare for your house hunt
You have probably heard radio ads recently about record-low mortgage interest rates (according to Bankrate, current rates for 15-year fixed loans are as low as 2.85 percent), and that can be a compelling reason to search for a new home in 2016. In addition, there tend to be more listings available during the summer, so you have a better chance of finding the home that fits your needs.
So, are you really ready to make that leap and buy your first home, upgrade to a bigger home, or even downsize to fit your new lifestyle? Ask yourself these questions to determine if you are ready to buy a new home:
What can I afford?
Shoot for a home valued at two or three times your gross income, but be sure to factor in your current living expenses, homeowners insurance, maintenance and other costs – in addition to the mortgage – when determining how much home you can afford.
What do I need in a home?
Make a list of your must-haves. Keep this list short so you don’t limit your search to much – about four or five key items (location, lifestyle, number of bedrooms, etc.) will help you narrow down neighborhoods.
What would be nice to have?
Make a separate list of features that would be nice, but not necessary (items like a pool, fireplace, three-car garage, acreage, etc.), but understand that you might not be able to find everything on your want list.
How much do I need for a down payment?
Which mortgage fits my needs and qualifications? Determine how much you will need to put down on a home in order to qualify for a mortgage and secure a mortgage that fits your budget.
Is my credit in good shape?
Check out these tips from Bloomberg on how to improve your credit score, if it’s not.
Doing a little bit of prep work prior to searching for a home can save you time and even financial heartache in the long-run. Knowing what you can afford and what you need and want in a home goes a long way toward ensuring that you make the right decision.
If you are thinking about a mountain home in Steamboat Springs, Colorado, contact us using the form below. We will put our local expertise and nearly 30 years of experience to work for you.