Will 2025 be your year to purchase a home? If so, you’re not alone—market forecasts indicate that pent-up demand among would-be buyers who have been waiting for mortgage rates to drop, combined with the general acceptance of 6%-plus as the new normal rate, will bring more buyers to the market in 2025.
So, while you may find yourself competing with others who are looking to purchase a home this year, there are some things you can do to ensure you’re well prepared for this lofty undertaking.
In the spirit of setting achievable goals and realizing the dream of homeownership, here are our top 5 New Year’s Resolutions for homebuyers:
Improve your credit score.
Mortgage lenders will examine it closely when you apply for a loan, so it’s important to have the highest score possible to boost your chances of securing a loan and getting a lower interest rate. Focus on paying down debts, avoid opening new accounts, pay your bills on time, and check your credit report to see if there are any mistakes you’ll want to dispute.
Save for your down payment.
While it’s not a requirement to put down 20%, doing so may yield some attractive advantages—including lower monthly payments, a better interest rate, and avoiding private mortgage insurance (PMI). If you’ve already started saving for your home purchase, double down on your efforts now that you’re getting closer to your home purchase. Save any “found” money like bonuses, gifts, or extra income, and set up automatic transfers to an interest-bearing account designated for your down payment fund.
Make a budget.
Creating a household budget that lets you live comfortably within your means without making major sacrifices is the goal. You don’t want to get in over your head, and homeownership comes with its fair share of both regular and unexpected expenses. You’ll want to factor in not just your mortgage payment, but utilities, insurance, taxes, and maintenance costs that will inevitably crop up along the way. Once you have a better understanding of your financial needs, you’ll be better able to choose a home that works for you.
Determine your needs vs. wants.
When you picture your ideal home, what are your must-haves? Where are you willing to compromise? While the “perfect” house that checks all the boxes may be hard to find, having clear idea of what you need, what you want, and what you can live without can help guide your home search.
Find an agent you trust.
Having an experienced real estate professional on your side is the best way to ensure you’re making informed decisions. It also eliminates the stress that comes from trying to navigate the often-complex world of real estate on your own. Fortunately, Nestfully is here to help you connect with an agent who knows your local market like the back of their hand. Once you’re ready to start your home search, they’ll be your dependable guide, lending you their expertise along the way to securing your new nest.
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