1. Determine How Much House You Can REALLY Afford
This is a resolution you should make this year (and any year). Determine how much house you can really afford and stick to your price point. Trying to buy the most house you can with the least amount of money is so 2007! People who did this six years ago were really stuck when the bubble burst! Underwater homes, foreclosures, short sales – you name it. We all “want it all” when it comes to size, amenities, location, etc, but remember that your eyes may be bigger than your wallet. Even in this new market with tighter lending restrictions, just because a bank or lender is willing to lend you the money to buy a house, that does not mean you can afford it! You have to be realistic, do your homework first, and buy within your means.
2. Save Money For A 20% Down Payment
When you buy a new home, you should always put 20% down. Especially now, more than ever, with the new mortgage regulations being rolled out. (Click here if need more info on the new rules). Before the housing market downturn, people were getting accustomed to buying a home with little to no down payment if they qualified for a full-price loan, and now that things are starting to look up, it’s time to reiterate how important the 20% rule really is. With 20% down, you’ll have a smaller monthly mortgage payment and a lower interest rate, which will save you thousands (if not tens of thousands) over the life of the loan.
3. Stop Deferring Maintenance – Make Small Improvements Now!
Tackle that “Honey-Do” list ASAP! Whether you’re looking to sell this year or five years from now, making small improvements to your home in 2014 will pay you back in spades. If you’re looking to sell soon, having your home in ship-shape will only make it more attractive to buyers and help you get top dollar. Small things like scuffed walls, dirty carpets, outdated appliances and overgrown landscaping are often magnified in the eyes of potential home buyer and can chip away at the equity you’ve worked so hard to build in your home. Make these small improvements now and you’ll be golden when the for-sale sign goes up out front. Not quite ready to sell? Well, if you make these small improvements this year, you’re saving yourself the headache and high costs that deferred maintenance wreaks on homeowners. Keeping up with the to-do list ensures that when you’re finally ready to sell, you can move quickly.
4. Examine Your Mortgage – And Refinance ASAP!
If you haven’t yet “refi”-ed, now would be a great time. Rates are at historical lows and likely won’t stay that way for long. If you have an adjustable, a teaser, or an interest-only loan – OR if your interest rate is over 5.5% – this may be your last window to get a better fixed interest rate. Make it happen!
5. Tackle Your Credit And Pay Down Revolving Debt
Get your credit in tip-top shape by closely reviewing your FICO score and fixing any errors. Good credit opens the door to success and bad credit will close it. With so many tighter restrictions on lending and mortgages in 2014, it is imperative that you have as close to perfect credit and scores as possible. If you want to get on that road to immaculate credit immediately, make 2014 the year you start to fortify your score by paying down your revolving debt and resolve to take on less credit debt by curbing any excessive spending.
Terry Naber, Realtor, RE/MAX Properties in Colorado Springs has been helping buyers and sellers for over 24 years make the right moves in real estate. Her dedication to service, expertise, and commitment to client satisfaction is unparalleled. Give Terry a call today for more information and to get all your questions answered, or just to see some homes in the area. Call 719-590-4796 or visit www.TerrySellsColorado.com
courtesy of truliablog.com
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