If you’re like many people, you were all set to buy your dream home in 2020. Then the pandemic hit, and massive uncertainty plagued the housing market, plunging the industry into confusion, along with the rest of the world.
But now that the extreme confusion and issues surrounding COVID-19 have slowly started to decrease in intensity, there is no better time to invest in your dream home.
In this guide, we will outline some of the questions you should ask yourself in order to be ready to purchase your dream home in 2021. If you are still feeling uncertain or anxious about the process, you may consider working with an experienced mortgage professional. These experts in the housing field will help you get into the home of your dreams quickly and efficiently.
What Can You Afford for a Down Payment?
When you get close to the point of purchasing your new home, you’ll need to carefully consider how much you will contribute to your down payment. General guidelines indicate that you should put down at least 20% of the home’s value for your down payment. However, this amount is unrealistic for some people.
Working with your lender and with a mortgage professional, you can figure out a down payment amount which you are able to afford.
Are You Maintaining a Strict Budget?
Defining and sticking to a strict budget is a must if you are hoping to buy your dream home in 2021. You’ll need to immediately start saving money for both your down payment and for your upcoming mortgage payments.
Whatever you are able to cut from your monthly spending should be eliminated immediately. As hard as it is to give up some of the comforts we are accustomed to, it is necessary when looking to purchase a home.
Limiting yourself to ordering take out only once a month and cutting costs wherever you can are great ways to save. Additionally, you may consider picking up some extra work through a side job in order to increase your income and save even more.
There are tons of creative ways to save money, you just need to set a monthly budget and stick to it.
Have You Been Pre-Approved?
Getting pre-approved for your mortgage is an absolute necessity. Going through the pre-approval process will give you insight into which homes are realistic for you to purchase and will save you time and stress. Best of all, the pre-approval process only takes a few minutes and simply requires a phone call to your mortgage professional.
Have you Considered Working with a Mortgage Professional?
There is no requirement to do so, but you should strongly consider partnering with a mortgage professional like the ones at Rex Homes as you go through the homebuying process. These individuals know everything there is to know about the housing market and what it takes to get a good mortgage rate. They can help you every step of the way, answer any questions you may have, and make the homebuying process as stress-free as possible.
Why wait? Talk to an experienced mortgage professional today!