IS A NEW GREATER CHARLOTTE HOME IN 2024 ONE OF YOUR NEW YEAR RESOLUTIONS?
3 RESOLUTIONS TO MAKE THAT HAPPEN
"To own a home is to build a tangible dream."
A new year always seems to get people thinking about taking a fresh look at their goals... from health and careers to relationships and finances. If one of your resolutions for 2024 is to buy a home, this is the year you make three more resolutions to make a home purchase happen: (1) improve your credit score, (2) pay down some debt, (3) save for a down payment to make that resolution come true.
2024 Home Buying Resolution #1:
Qualify For A Better Mortgage Rate With A Higher Credit Score
Your credit report highlights your current debt, bill-paying history, and other key financial information. Importantly for your home-buying journey, it is also used by lenders and companies to calculate your credit score, which partly determines if you are qualified to obtain a mortgage. So, before you start house-hunting, make sure your finances are in the best possible shape by checking your credit report from Equifax, Experian, and TransUnion (via AnnualCreditReport.com). You can also obtain your credit score for free from some banks and credit card companies.
Your credit score will be a number ranging from 300-850. Generally speaking, a credit score of 740 or higher is considered very good to excellent. If your FICO score drops below 740, you might need to work at boosting your score for a few months before you begin house-hunting. Ways to do this are to pay your bills on time every month, keep your credit card balances low, and avoid applying for new credit. Get Ready To Buy A Home By Improving Your Credit Score.
“Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy.”
... Marshall Field
2024 Home Buying Resolution #2:
Improve Your Credit Health By Paying Down Debt
Do you have student loans, credit card debt, or car payments tying up your income each month? That debt is hurting your “buying power,” or the amount of home you can afford. Not only is it money that you can't spend on your new home, but your debt-to-income ratio also affects your credit score, which was noted in Resolution #1.
The less debt you have, the higher your FICO score and the better mortgage you can obtain. If you can, pay off some debt in its entirety—like a low balance on a credit card. Then apply that "extra" money you previously paid on that credit card to pay off bigger debt, like a car loan. Even if you can’t pay off all (or any) of your debt in full, reducing the balances of each account will help you qualify for the best possible mortgage terms. 3 Keys To Hitting Your Homeownership Goals This Year.
“90% of all millionaires become so through owning real estate.”
... Andrew Carnegie
2024 Home Buying Resolution #3:
Create A Financial Plan & Safety Net Before Applying For A Mortgage
Don’t forget that buying a home requires some cash reserves, as well. A down payment is typically 3.5%-20% of a home’s purchase price, and closing costs can exceed $5,000. You’ll also need money for moving expenses and any initial maintenance tasks that might pop up once you've purchased a home.
You never know when an unforeseen event might cause a job loss, drop in income, or health scare, so having some liquid savings will ensure that you can still pay your mortgage if a crisis occurs. Dedicate some effort to building up your reserves. Cut down on unnecessary expenses, and consider having a portion of each paycheck automatically deposited into your savings account to avoid the temptation to spend it.
“Owning a home is a keystone of wealth…both financial affluence and emotional security.”
... Suze Orman
Let Nina Hollander Help You With Your 2024 Home Ownership Resolution
Without a plan and a support system, 55% of Americans will break their new year’s resolutions. It helps to connect with a trusted real estate agent to keep you motivated and on track.
As local market experts, we have the knowledge, experience, and networks to help you achieve your homeownership goals, whatever they may be. Reach out to me today for a free consultation and commit to keeping your resolution to buy a new home in 2024.
Nina Hollander with Coldwell Banker Realty has been opening doors for Greater Charlotte area home buyers for 25 years. If your 2024 resolution is to buy a home in the Greater Charlotte area this year, I'd love an opportunity to earn your business, to exceed your expectations, and to show you why experience matters and how: