The New Year is here and you’ve decided to purchase your first home or you’re looking for your next real estate investment. In the Charlotte area, there is no time like he present. Why would you wait, with Interest Rates still at an all time low at around 4 percent for a 30 year fixed mortgage? Over the span of 30 years, it really adds up! I’d rather pay more towards my principal mortgage than interest to my lender. The longer you wait, the higher you can expect to pay. Even a half point can quickly add up to tens of thousands of dollars or more over the life of the loan.
If you’re a renter, you probably already know prices are not going down anytime soon! According to the Rent.com Market Report, 88% of Property managers raised their rents in the past 12 months and an 8% increase is anticipated for the upcoming year. Good for investors, bad for renters. It is worth doing your homework if you are on the fence about committing to a mortgage because you’re not sure if you can afford it. In today’s market there are many options with loans, some with little or even no money down. Contact a local Realtor (just call us =) )to help you on your way.
So you have decided that this is the year to move ahead and buy that first home, dream home, or investment property! It’s time to organize your Financial House! It is the very first bit of advice I give all my clients when they come out to Lake Norman and get hearts in their eyes. Even the most responsible clients can hit bumps on their journey to home buying. I’d like to get you there with your ducks in a row and little to no surprises from your lender.
Before we get in the car and you fall even more in love with Lake Norman or wherever you have found to plant your roots, plan it out.
1- Pull your credit. You can get one free credit report per year on www.FreeCreditReport.com. This tells banks about your financial liabilities and is a large deciding factor to what loan amount and rate you will qualify for. The better the score the better the loan percentage you will be able to secure. Experian ,Transunion and Equifax are the three agencies whose information is calculated to create your FICO score. It is extremely important to have and review this information in making sure it’s completely accurate. The sooner you find a discrepancy, the sooner you can attempt to having it fixed. On a side note, this is why it is so important to hold onto any payoff documents or credit lines that you have closed.
2- Reach out to the credit agencies about any discrepancies you may find. Get your finances in tip top shape for review.
3- Curb your spending. If you are serious about making a purchase this year, do not apply for more credit, buy a new car, book a fancy vacation, etc. Lenders are looking at your debt to income ratio, meaning how much money your earn vs how much debt you’ve accumulated.
Aligning yourself with the right Realtor is key! Find someone you are compatible with who asks plenty of questions and has your best interest in mind. Happy house hunting in 2016 and may your transaction be a happy and successful one! Don’t have a broker/agent? Call me today 704-458-3331!