2021 has been an interesting year for home buyers. The market has been competitive and may even seem intimidating at times. However, there are several important lessons to learn when buying a home. Corken and Company values keeping their clients informed, and we want to give you some tips that might come in handy during the buying process.
You may not need as large of a down payment as you might think:
Home prices are rising and that can make coming up with the necessary down payment even tougher. But even if you don’t have a big down payment, there could be a variety of options for you to buy a home. Your agent can help you find good options such as an FHA loan that may require just 3.5% down, USDA and VA loans may not require a down payment at all, and here are more options to consider.
Work with an agent who will invest the time to find a home that matches your wants, and your budget. Get an agent who understands your financials and what you are looking for, and can make the right suggestions and give the right advice.
Get your finances organized, and your credit score up:
Before you put in an offer, get your credit score and finances in order. First-time homebuyers should try to improve their credit score as much as possible. One of the ways to do that is by checking your credit report for errors and disputing inaccuracies.
And get your finances in check too, especially if you are a single home buyer relying on one source of income like myself. You’ll need the last two years of tax returns, W-2’s if applicable, documentation for all your income and your credit report. Here’s a full list. Be sure to be on top of monthly payments on all your accounts and take care of any issues before getting pre-approved for a mortgage.
Hire a team you can trust that’s familiar with the area and type of property you’re buying:
Choosing a mortgage banker and lawyers that have familiarity with the type of home you’re buying—whether it’s a house, condo or co-op—in the city you’re buying in is also imperative. Our team brings over 20 years of experience to the market. Corken and Company can help you find a great fit!
Keep track of interest rates:
Since interest rates change quickly, if you find a lower rate, you may want to lock it in. Keeping yourself updated on the latest mortgage rate trends should help you get the lowest mortgage rate before closing. However, typically, when you’re locked into a mortgage rate you won’t be able to change it if rates go down. It’s important you understand clearly what your lender’s rate lock rules are, and find out if your locked rate could change in certain circumstances.