Most people who are interested in buying wait until the spring to do so. If you’re one of those people who plan on buying in the next six months, now is the time to start getting your ducks in a row.
Over the years, we’ve seen people do absolutely nothing between now and the springtime. When the weather starts to improve, these people are completely unprepared to begin their home search!
Right now, time is your ally. Use this time to figure out your budget, find out how much money you are going to use for the down payment, and know what your credit score is! If your score is pretty low, there are things you can do to improve it between now and the spring. Knowing what hurts your credit and when credit companies record their reports can help you do all the right things to improve your score. In just about 60 days, you can see a drastic change in your credit score.
If you want to keep your credit score in good shape, you need to avoid exceeding 30% of your max limit on your credit card. If you have a credit limit of $1,000, you need to keep your debt at $300 or under. If it’s above that, your credit is going to get dinged.
Your credit score is what lenders use to determine your risk. A lot of the credit programs are risk based, so the better the credit score, the better the interest rate, and the better the interest rate, the lower the monthly payment. A great credit score can have a huge impact on your monthly mortgage payments.
If you’re planning on buying in the next six months, get all your ducks in a row! Find your 14 tax returns, look at what’s in your bank account, and start budgeting. These are the things a lender is going to need to determine your viability for getting a home loan.
Give us a call or shoot us an email if you would like real estate or lending assistance of any kind. We’re always here to help you!