Real Estate Expert Offers 2018 Buyers Tips

The real estate market for 2018 continues to look strong according to recently released industry reports (Housing and Mortgage Market Review and State of the Housing Union). Last year we saw the sales of new homes in the United States increase to levels not seen in nearly a decade. These statistics are great news for industry insiders, monitoring the economy’s robustness. However, it may make purchasing a home more challenging for buyers with modest resources. They will need to be prepared, smart and aggressive when it comes to purchasing a home in 2018. Jacobson Realty and Home Staging Owner and Broker Belinda Jacobson-Loehle offers these tips for purchasing a home this year.

Check Your Credit Score

When you are applying for a mortgage loan, your credit score can impact the interest rates you’ll be offered. Typically, a lower credit score means a higher interest rate. Get a copy of your credit report and review it carefully to ensure there are no errors. Pay your bills on time and try to reduce or eliminate any debt.

Reduce Credit Card Spending

Decrease your risk for mortgage lenders by minimizing your debt-to-income ratio. Reduce credit card use, don’t open a new credit card and avoid making large purchases. These can help you improve your credit score and potentially get you a better mortgage rate.

Increase Your Savings

Review your finances. Cut back or remove any extraneous expenses. Establish a monthly budget to start saving for your down payment. Use online banking to set up an automatic deposit from checking to savings. Put any tax refund, raises or bonuses into savings instead of spending it.

Understand the Impacts of the New Tax Bill

Talk with your realtor or financial advisor to determine how the 2017 tax bill affects your home buying experience and financial impacts.

Get Pre-Approved

With the current competitive market landscape, many sellers won’t consider an offer without a pre-approval letter from a lender. You’ll also want to know how much you can afford. Mortgage pre-approval is basically a promise from the lender that you are qualified to borrow up to a certain amount of money at a specific interest rate, subject to a property appraisal and other requirements. In the mortgage pre-approval process, the lender looks closely at your credit and verifies your income. Keep in mind, that pre-approval does not completely guarantee that your loan will be approved and is generally only valid for 60-90 days.

Research Neighborhoods

Your real estate agent will be able to tell you where the hottest neighborhoods are located. Research or ask you realtor about important factors such as general demographics, walkability, access to public transportation, the quality of schools, and crime rates in the area. It’s a good idea to check out different neighborhoods to get a good feel for what you want.

Utilizing these steps during your home-buying process can empower you to make smart decisions about your home purchase in 2018.

For all your real estate needs, please contact Belinda Jacobson-Loehle at Jacobson Realty and Home Staging today.
Sign up now for a FREE copy of my eBook, “The Real Estate Key – What You Need to Know!”