With Spring comes warmer weather, more activities, and a busier real estate market. Spring is well known as the “busy season”. This is when sellers start to list their home and buyers are more active. It might be because of the weather, the holidays, timing for the school year, or just because it’s time! Whatever it is, here are a few tips for buying a home this Spring…
- Set a strict budget. Your first step should be to decide how much you can afford to spend on a new home. Besides your asking price, also take closing costs, montly mortgage payments, a down payment, moving and other expenses into consideration. The Mortgage Bankers Association recommends that buyers spend no more than 2.5 times their income on a home. Total housing payments should not exceed 28 percent of your gross income, and total debt payments should be less than 36 percent.
- Make 3 Lists. What does your new home absolutely need to have? What would you like to have? What do NOT want in a home? Research these now to save time when you’re searching.
- Find a good real estate agent. A real estate agent can often give you valuable information that may not be available to you otherwise and help you find a home with all of your requirements within your budget. Ask friends and family for recommendations, or check online.
- Get pre-approved. Discuss your options for a mortgage with several lenders and choose the rate and terms that are right for you. This way you’ll be able to act quickly once you find a home that you love.