The start of a new year always compels people to take a fresh look at their goals, from health and career to relationships and finance. But with historically low mortgage rates, increased home sales and price growth, and a tight housing inventory, the time is right to also make some homeownership resolutions for 2021.
Read on to discover key action steps to take to achieve your homeownership goals this year, whether you’re a home buyer, home seller, or a homeowner not yet planning on moving.
Resolution #1: Qualify for a better mortgage with a higher credit score.
Your credit report highlights your current debt and bill-paying history and is used to calculate your credit score, affecting whether you’ll qualify for a mortgage. Generally, a credit score of 725 or higher is very good to excellent. If your score is below 725, work at boosting it before
Resolution #2: Improve your credit health by paying down debt.
Debt hurts your buying power (the amount of home you can afford) and your credit score. The less debt you have, the higher your credit score and the better mortgage you can obtain. Try to reduce (or eliminate) the balances on each account.
Resolution #3: Save up to create a financial safety net.
The down payment depends on the home’s price, but the minimum is 5% for a purchase price of under $500,000, and closing costs range from 2-3%. You’ll also need money for moving expenses and any initial maintenance tasks that might pop up, and having some liquid savings will ensure that you can still pay your mortgage if a crisis occurs.
Even if you don’t plan on leaving your current residence, real estate is a great way to improve your quality of life in 2021. A vacation home in a getaway location you love lets you safely spread your wings. And if you have been looking for a second stream of income, an investment property might be your answer.
Let Us Help You With Your 2021 Goals
Whether you’re looking to buy, sell, or stay put in your home, it helps to connect with a trusted real estate agent. As local market experts, we have the knowledge, experience, and networks to
help you achieve your homeownership goals, whatever they maybe. Reach out to us today for a free consultation and commit to a happy and prosperous new year.