So with that in mind, I bring you new year's resolutions for home buyers and sellers who are planning to conduct a transaction in 2018.
FOR BUYERS
1. Check your credit report and credit score.
Especially if it's been a while or if you suspect to find errors or a less-than-stellar report, you should check your credit to see if there's any clean up that needs to be done. Mortgage lenders want to see that you're responsible with credit, so pay your bills on time and be careful not to let your balances get too high. If your credit report contains errors, contact the appropriate credit bureaus to get them corrected.
2. Save, save, save.
At the least, you're going to need cash for your down payment. Beyond that, you'll have moving expenses and possibly improvements to make or furniture to buy. Consider automating your savings so that you're regularly squirreling away part of your salary for your down payment and other home-related expenses.
3. Collect your financial documentation.
Among other things, you'll need tax returns, pay stubs and bank statements when you start talking to lenders. The end of this year or beginning of the next is the perfect time to start your file, because you'll need many of these documents for tax preparation as well.
4. Get prequalified or preapproved.
If it's very early in your home search or you're a first-time buyer, a prequalification can be helpful in determining how much you can borrow toward the purchase of a home. If you're a little further along in the process, a preapproval letter will put you in an excellent position to make an offer when you find your dream home.
5. Pay attention to mortgage rates.
They're still very low, but mortgage rates could begin to rise in the coming months. Take that into consideration as you plan your timeline, and don't let them sneak up on you. If rates begin to increase sooner rather than later, you might be well-served to act faster than you'd planned.
6. Talk to a Realtor.
An experienced Realtor is your very best source of local market information. Even if you're not ready to start looking at homes, a Realtor can talk to you about pricing trends, the pace of the market and what the inventory is like in your price range.
FOR SELLERS
1. Get your home ready to be shown.
This likely won't happen all in one day, so give yourself plenty of time. Start by taking an honest look at your home and making a list of things that have to be done before you can put it on the market. Then tackle the clutter, painting, repairs and other tasks that need to be completed.
2. Figure out your timeline.
What's your next move? Whether you're buying in town, building a new home or moving out of state, determine how soon you could be ready to move and how long you could wait if if you needed to.
3. Talk to a Realtor.
Get a Realtor involved early in the process. Again, this is your No. 1 source of information when it comes to the market. After completing a comparative market analysis, your Realtor will be able to advise you on a smart pricing strategy that takes into account your home's market value as well as your timeline. She can also help you decide what repairs need to be done now and what can be left for buyers.
Ready to make plans for a smooth home buying or selling experience? Let's get started! Call me at (540) 353-0123or email me at sonya@sonyadickinson.com. Browse my listings here and be sure to like my Facebook page.
