As the new year begins, we make resolutions we hope to fulfill by the year’s end. Often, they are centered around eating better, exercising more, and all around healthier living, but we tend to neglect other goals we may have in mind. Owning a home is a major goal on most people’s list. So why can’t 2087 be the year you buy a house? With the proper steps, owning a home is possible. Here are a few new year’s resolutions you should be making to get you in a new home this coming year.
Decide what you want
Knowing what you want before you start looking is important. First, you need to decide where you would like to live. Next, decide what kind of house you’d like. If you find it necessary, make a list of must haves vs. deal breakers. If you begin looking without knowing exactly what you want, it’ll take you twice as long. Take some time to figure out what is best for you since buying a home is a long and serious commitment.
Get your financials in order
Now that you have decided on an ideal home, it’s time to get serious. It’s time to look at what you can actually afford and continue with the first step. Map out how much you’ll put down for a down payment. Budget for monthly mortgage costs and don’t forget closing costs. Nine out of ten people finance the purchase of their home. This means a loan is required and you should start that process before bidding.
Get pre-approved before you begin house-hunting
Getting pre-approved gets you that much closer to owning a home. Pre-approved means you have met with a loan officer, they have reviewed your financials and deemed you credible for a loan. If approved, you will receive a pre-approval letter, which will show your borrowing power. This letter shows the listing brokers your seriousness and your ability to go through with a purchase. You can obtain as many pre-approval letters as you like, but remember each letter requires a credit check, which will show up on your credit report.
Protect yourself with insurance
You need to protect your biggest purchase with insurance. Purchasing title insurance is done as a one-time fee and helps safeguard the owner in case the property is found to be invalid. Homeowner’s insurance should also be purchased. It protects against fire, theft, and liability coverage. Other insurances, like earthquake and flood, are left up to the buyer’s decision.
If you begin focusing on your real goals now, they’ll become realities by the end of the year. These are just a few of the resolutions you should think about if you’re serious about buying a home. Since the housing recovery in 2012, 2017 has been the hottest year so far. Forecasters have been predicting 2018 to be even better.