How to Successfully Buy a Home in 2017
If you’re looking to buy a home in 2017, you may have some concerns. There’s a little uncertainty with a new presidential administration and whether interest rates will increase. Talking with a mortgage specialist at Essex Mortgage can help cut through the confusion of financing your home purchase. To help you have a successful home purchase this year, here are some tips:
Make sure your credit is healthy. If you haven’t checked your credit score yet, you need to do so as soon as possible. You can use Annual Credit Report for free, and see all three credit reports from Equifax, TransUnion, and Experian. You should do the following things to help raise your credit score:
- Identify and correct any errors.
- Start and continue to pay your bills on time.
- Keep your credit utilization ratio low (30 percent or lower is best).
- Raise your credit limits.
- Look into credit counseling if your score is low.
This may go without saying, but the higher your credit score is, the lower your mortgage rate will be. You will want to aim for a score of 740 or higher. This is also not the time to open any new lines of credit.
Investigate mortgage rates. Although last year boasted low mortgage rates with an average of 3.65 percent, in 2017, you can expect rates to increase. There may be ways to circumvent these increased costs such as requesting that the seller paying your closing costs. Some wiggle room in the purchase price could emerge if interest rates continue to climb, so be on the lookout.
Choose your home and real estate agent carefully. This is a seller’s market: housing inventory is low while demand is high. Not only will you want to choose a good real estate agent to be a guide and advocate for you to get the best deal, you’ll want to identify what your non-negotiables are when it comes to your next home. Knowing what you can and can’t live without will help you find a home that best fits your needs—and some of your wants, too.
To learn more about how Essex Mortgage can help you with the purchase of your next home, contact us today.