How Can I Prepare To Buy a New Home in the New Year?

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With the New Year comes new goals, resolutions and aspirations. For many of us that includes the chance to purchase a new home after a strange and stressful market this year. 2022 brings a hopeful forecast of lower housing costs with a golden period of low rates and prices in the mix.

So with this much anticipation for 2022’s housing market, it’s important to understand what’s needed to become the prime bidder on your dream property.

Be Able To Sell Yourself on Paper

There will be multiple buyers looking to step back in the housing pool next year which means more applications to be reviewed throughout the process. Lining up funding is essential so look in your preferred areas to get an idea on what a property would cost for you.

Once you have a budget in mind, start looking at how the potential mortgage payments would impact your monthly costs. You’ll need to find your debt-to-income ratio, or DTI. The lower your DTI, the more room your budget has to accommodate a loan payment which means better approval odds.

Freeing up your credit usage is another great option to become a more appealing applicant for a mortgage. Pay down credit cards and pay off any loans with small balances that don’t have early pay fees. A quick bump to your credit gives you a head start towards low interest rates.

Always Be Ready To Move Quickly

Between the seller, real estate agent, mortgage company and inspectors, there are a lot of people needing your attention. Stay organized during your house hunt and have as many liquid assets available as possible.

Liquid assets include cash, money market accounts and publicly-traded stocks. Typically the down payment will range from 15-20% of the asking price but this doesn’t mean you should stop there if you don’t need to.

On top of the down payment will be various costs associated with processing and closing. While these can often be covered in part by the seller, it’s not something you should count on. Having a higher cash offer also puts you at the front of the line for most houses especially if you also have a pre-approval for a mortgage ready.

Work With a Professional Mortgage Team

The 2021 market was focused primarily on the costs of housing as interest rates stayed steadily and historically low. Now with the market settling, interest rates will begin to move again. It’s recommended to work with a group that understands the industry such as us here on the Potempa Team.

Being able to have a dedicated advisor watching the mortgage market allows you to focus on working with your real estate agent to find the perfect property. With the Potempa Team, you can rest easy knowing that you’ll be kept informed throughout the process.

Buyers and sellers are both looking forward to what 2022 has to offer and want to keep transactions as simple as possible. If you have everything lined up to complete your purchase swiftly, that can hold value beyond a dollar amount.

Reach out to the Potempa Team today to leverage decades of mortgage experience. Take a moment to begin turning yourself into the perfect buyer and snag your preferred property next year.

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