If you fall in love with the home of your dreams on the Tour of New Homes – whether you decide to build or purchase a new construction home – it’s wise to start preparing now. Following a few simple tips will help put you in a better position to purchase the home that’s right for you.
Prioritize Your Must-Haves
First-time home buyers should take the time to determine what their needs are, especially regarding size, location and amenities. But even seasoned home owners will find that having a must-have list can save significant time avoiding listings that may look great in the photos, but in reality, won’t meet their needs.
Check Your Credit Score
Having a favorable credit score can make a difference in your ability to be approved for a loan. It’s a good idea to check your credit score periodically to ensure you aren’t being unfairly penalized for old debts, which can sometimes linger on credit reports. Borrowers with scores in the low 600s and even high 500s can still find lenders who will qualify them, but borrowers should strive for scores in the mid- to upper-700s to land the best rate.
Determine What You Can Afford
Don’t let your maximum loan approval amount dictate what your home-buying budget should be. Experts say that your total monthly home expenses should not exceed more than one-third of your gross monthly income. You’ll also need to determine how much you’ll need in order to cover any loan fees and closing costs.
Sell Your Current Home
If buying a new home is contingent on the sale of your current home, it’s a good idea to start the process by consulting with your realtor. You’ll want to identify any maintenance issues your home has, and determine how each one will need to be addressed. Also ask your realtor if making any upgrades to your current home would be worthwhile and result in a profitable return on investment.
The Tour of New Homes is presented by Berkshire Hathaway HomeServices Parks & Weisberg Realtors, Louisville Realty Group and RE/MAX. For more information, including a list of Tour homes, visit LouisvilleTourofNewHomes.com or Facebook.com/TourofNewHomes.