Tips for Purchasing a Home in 2022
It’s a new year and you may have decided that purchasing a home is one of your resolutions for 2022. While the home buying process can be fun and exciting, there are a lot of moving parts that need to be in place in order to complete the process. Before you get started, you want to make sure you have the proper foundation laid. To help you prepare for purchasing a home in 2022, I recommend following these tips.
Prepare your downpayment
A downpayment is your first step toward purchasing a home. To start saving, consider setting aside a certain amount of each paycheck for your down payment. If possible, try to save 20% of the purchase price. The real estate market is highly competitive right now and a larger down payment will make you stand out and save you money in the long run.
Improve or maintain your credit score
While a credit score of at least 620 is recommended to purchase a home, the more you can improve your score, the better. Lenders tend to give the best rates to buyers with a credit score of at least 760. To improve your score, make sure you keep your balances low, your accounts open, and monitor your credit reports.
Get pre-approved for a mortgage
Once your credit score is in good shape, contact a loan officer to get pre-approved for a mortgage. You’ll need to calculate your debt-to-income ratio and compile your financial and personal information to prepare. While pre-approval does not guarantee that you will be given a loan, it’s a great way to see what you qualify for and what your monthly mortgage payment may be.
It can sometimes feel like purchasing a home is an impossible task, but I know these tips will help make your real estate dreams come true in 2022. And as always, I recommend working with a licensed real estate professional. Contact me today so I can help you get started on your path to home ownership.