New Year Resolutions for New Home Buyers

Recent real estate trends are predicting that home prices are expected to rise at a rate of 5% a year through 2020 and a low inventory of homes for sale in the Alpharetta area. Considering these 2017 trends, now may be the best time to purchase a home. Whether you are a first-time homebuyer or plan to purchase a new home in the coming year, there are some New Year’s resolutions you should add to your list to get prepared.

Watch Your Credit Score

Your credit score can keep you from being approved for a mortgage. You are entitled to a free credit report each year and you can obtain form annualcreditreport.com. After checking your report for errors or information like liens, late payments, delinquencies or fraud, address these issues. Sign up with a FICO score monitoring service that will alert you to any changes to your credit score while you are in the process of home shopping.

Lower Your Existing Debt

You might not be able to completely eliminate your debt, but if you are planning to apply for a mortgage, you should work to reduce your debt. Having a lower debt-to-income ratio under 36% will help you qualify for better interest rates and mortgage programs.

Save for Your Down Payment

You will need to review how much you will have available for a down payment. You should adjust your budget to reach the amount you will need if you don’t have enough saved.

Prequalify for a Mortgage

The first thing you should do is get prequalified for a mortgage before you start your home search. This gives you a realistic picture of how much house you can afford.

These resolutions will allow you to be in a better financial position when you purchase your new home.