New Year, Fresh Start: Homebuyer New Year’s Resolutions
This year is the year you’re buying a new home, and Sterling Homes is here to help!
Start Saving for Your Down Payment
The down payment is one of the most important steps when getting ready to purchase a new home. Most home builders require 5-15% down payment to get started on a new home and can offer flexible payment schedules within the first three months into the building process.
A down payment of at least 20% is required if you wish to not take out a high-ratio mortgage with the additional insurance fees. It’s critical to start thinking about how much you would want to spend and how you’ll get the money.
Whether it’s through your personal savings, Retirement savings via the First-Time Home Buyers’ Plan, equity in your current home, money from your investments or financial assistance from parents or relatives.
Check Your Credit Rating
A credit score is a number ranging from 300 to 900 that indicates your creditworthiness. A credit score of 690 or higher is considered “good” by credit-rating companies Equifax and Transunion.
To determine mortgage eligibility, lenders will use this score in conjunction with other factors such as your debt-to-income ratio. If you’re not satisfied with your credit score, take the time to improve it before beginning the pre-qualification process. For assistance, contact one of our recommended lenders.
Next step is keeping your credit rating score steady during the building process. Making large purchases, such as a car or furniture for the new house, right before starting the home buying process is a common mistake we see with home buyers. While purchasing these items is not always a bad thing, it can have an impact on your credit score.
Starting a new job is always an exciting and enjoyable experience. However, starting a new job in the middle of the home buying process can have an impact on the process. While it is impossible to predict when you will be offered a new job, chat with your lender before making these big decisions to ensure you qualifications will not change.
Get Pre-Approved for a Mortgage – Organize your Finances
You’ll need a thorough understanding of your income and expenses to embark on the home-buying process. A mortgage pre-approval does not obligate you to purchase at this time, nor does it bind you to that particular lender.
It’s simply a written confirmation of the approved amount and the promised rate, allowing you to shop confidently within a budget you know you can afford.
You’re reading this blog so we can assume you are either curious or looking to purchase sometime soon. Explore our website to find your favorite community, floorplan or quick possession home and stay up to date on our latest special offers. We also offer multiple buyer resources for all your questions and to prepare you for the home building journey.
Once you are ready to start exploring in person, bundle up and hit the streets with a budget in mind and explore our different communities and the amenities available. Do you use public transportation? Is a vibrant nightlife important to you? What about daycares and schools? What about parks and recreation? What about highway access? How close (or how far!) do you want to be to family and work? Consider your daily requirements and how they might change over time.
The Sterling team will be happy to help you in your journey and walk you through the process every step of the way.