After a chaotic year in real estate full of home buyers scrambling to scoop up properties while prices shot through the roof, economists predict the 2022 market to be slightly more forgiving. Industry groups expect the supply of for-sale homes to increase while home prices rise at a slower rate. However, if you hope to buy a new home this coming year, now is the time to muster up some stamina and a solid strategy.
Have you been searching for a new home but still feel nervous to jump into the deep end? The New Year is the perfect time to create a realistic and achievable game plan to buy a house.
While the 2022 market may be slightly easier to navigate than last year’s market, thorough preparation is key for a smooth home buying & closing experience. Read on for True Concept Title’s tips to be a savvy homebuyer in the New Year.
Save Up for a Down Payment
Depending on the cost of the home you want to buy, you will most likely have to take out a mortgage loan from a bank. You will need to have approximately 3-20% of the loan saved up as a down payment and an additional 1-3% for closing costs.
If you foresee yourself buying a home in the next few years, an effective New Year’s resolution could be a plan to save your down payment in 12 to 24 months. Create a high yield savings account and deposit $500 to $1000 per month by picking up more hours, trading down to a cheaper car, or budgeting better. Over time, you will take a big step closer to your new home.
We want to see you in a new home in the New Year. Call our Tampa-based team at True Concept Title to learn about our mortgage partners and our title, escrow, and closing services.
You will need to have approximately 3-20% of the loan saved up as a down payment and an additional 1-3% for closing costs.
Prepare Your Finances for Homeownership
Before buying a home, you must have a complete picture of your income, expenses, and other finances. Usually, you need to get preapproved for a loan by a lender for an estimate on how much you can spend. Keep in mind that lenders prefer a stable track record of around two years, so don’t make any sudden job or income changes.
When contacting a lender, have the following information prepared:
- Your monthly income
- The sum of your total monthly debt payments (auto loans, student loans, credit card minimum payments)
- Your credit score and any credit issues in the past few years
- How much money you have available to put down
Make it a New Year’s goal to organize your finances in a way that can be easily understood by yourself, lenders, and agents. Utilize tools such as Microsoft Excel, Google Sheets, and financial tracking apps to save yourself a headache.
Secure a Real Estate Agent
As soon as you decide you want to buy a home, find a real estate agent who you can trust and rely on. With a thorough search, you will find the agent who suits your needs.
Once you’ve found the right person, place your trust in them and heed their advice. They often have the best recommendations for attorneys, mortgage professionals, and home inspectors and better understand the home buying process than anyone.
Learn More > The Transition from Renting to Ownership
If you think a home is perfect, chances are someone else may too – especially in a hot market. If you’ve fallen in love with a particular property, don’t hesitate to make an offer or risk losing it. The New Year is a better time than ever to stop procrastinating on purchasing a property.
Enjoy the Homebuying Process
Although the home buying process can be a daunting experience, remember that it’s also supposed to be fun. This is an exciting time in your life; lighten the pressure as much as possible by leaning on experts in the field.
We’ll work with your real estate team so you can relax and take time to explore your new neighborhood. Check out the local scene—dining, parks, and entertainment—you’ll get a better feel for the area and perhaps make some new friends while doing so.
In a Seller’s Market? > Tips for Buyers
Purchase Title Insurance through True Concept Title
We understand that this is a monumental purchase. For first-time buyers, this is a big life moment as well. Once you’ve found the perfect home and are ready to close the deal, you should do everything in your power to ensure ownership is properly and legally transferred to your name.
Title insurance protects your home investment against potential legal issues that may arise during closing.
When the time comes to close and make the home yours, remember you have a choice in title. True Concept Title is here to protect you throughout the homebuying process. We support you with top-of-the-line title insurance and escrow services. Let us provide our convenient mobile closing services.
Contact our Tampa, Florida-based national title, and escrow specialists at True Concept Title today — 813-263-7168!