As we begin 2022 many people may be thinking of relocating, moving to a new house, possibly looking for a vacation getaway home, or maybe you want to retire to a more quiet environment. Maybe you are tired of the hustle-bustle of the city and want to come up to the Lakes Region. Who wouldn’t, it is beautiful up here! In 2021 many people thought, ‘Let’s wait a year, the real estate market is crazy right now.’ Here we are, 2022, it’s time to start looking for that new place. We don’t know what the real estate market will bring this year, however, there are some things to do to put yourself in the best possible position to purchase that home you have been talking about all year or longer. Below are five actions to take now to prepare you for the purchase ahead.
- Research home prices and neighborhoods in advance to see which ones have home prices within your budget. You will be disappointed if you find the perfect house, only to realize that the prices are out of your comfort zone.
- Boost your credit score. This means paying bills on time, don’t open any new credit cards, even store credit cards, and don’t make any large purchases during this process. The higher your credit score is the easier it is to get a mortgage. Also the higher your score is the more likely you will get a better interest rate because you are at a lower risk to default on the mortgage.
- Start putting away extra money for a downpayment. Home prices have been inflated this past year. Chances are you are going to have to have more money than expected to have for a downpayment. Prices may stabilize a bit, however, don’t count on getting a bargain basement deal.
- Be prepared for the competition. Currently, inventory is low and it is expected to continue like this at least for a while. Expect competition, so put yourself I the best possible position. One way is to get a mortgage pre-approval letter. This shows the seller that you are serious and you are able to get a mortgage.
- Get a Realtor that knows the area you want to be in. You may have a friend that said they will help you, but if that agent doesn’t know anything about the area, you will be putting yourself at a disadvantage. Look at the closings in the area, and find someone that is knowledgeable in the area where you would like to buy.
Good luck in your home search.