Thinking about buying a home in 2023?
Many would-be home buyers saw interest rates climb and property values begin to drop as we entered the fourth quarter of 2022. This caused potential buyers to take pause, and for some, do away with the idea of buying a house altogether. So, what about buying a home in 2023?
If you are considering buying in the 2023, here are a few things to keep in mind ahead of making one of the biggest decisions and investments of your life:
1. Are You Ready to Buy a Home?
You may think you are ready, but are you trulyready to buy? Buying a home takes time, research, and resources. Do you know what kind of home you are interested in buying? Is it a single-family home, a townhouse, a condo, etc.? All of that aside, you have more pressing matters to consider, such as…
2. Is Your Credit Score Good Enough to Qualify for a Loan?
Your credit score represents a good portion of your credit worthiness when it comes to securing financing. Maintaining a good score requires low usage of your credit (no maxing out your credit cards for the holidays) and no late or missed payments on your loans including but not limited to your car loan, credit cards, etc. If you are staying on top of your finances and not overextending yourself, chances are you are going to have a “loan worthy” credit score.
3. Are You Saving for The Deposit?
Being able to put away money for your deposit does two things: 1. It allows you to have the necessary funds for down payment for your home, and 2. it shows potential lenders that you can put money aside which means you can potentially afford your mortgage payment.
4. Do You Have a Steady Income?
Your lender is going to require proof of income. You will need to show several months of bank statements as well as paystubs. Showing a long history at the same place of employment or at least within the same industry is a sign of stability.
5. Are You Working with a Lender?
You will most definitely need to work with a lender to secure financing unless you are paying CASH for your home. Speak with your Realtor® to see if he recommends any lender(s) and be sure to also check with your bank and/or credit union. Don’t be afraid to shop around for the lender that best meets your financial needs.
6. Have You Contacted a Realtor®?
In addition to having the expertise, your Realtor® can help you navigate the market. From pulling listings and recent closed sales in a certain area you may be considering to helping you find the right home for you, your Realtor® is there to help you every step of the way from house hunting to closing and beyond.