Learn these three strategies when you’re about to purchase a new home.
I’ve been meeting with many prospective buyers who are eager to transition from renting to owning their own homes. They’re tired of high rents and want to start building equity in their own property. Here’s how to make that happen despite the challenges like high interest rates and the substantial amount of money needed to buy a home:
1. Utilize your tax refund. Many of you receive a tax refund each year, with the average refund size up to 6.1%. Instead of spending this money on non-essential items, consider putting it into a dedicated savings account for your down payment. Even a $2,000 refund can significantly contribute to your home-buying fund.
2. Prepare for closing costs. Closing costs can be an unexpected financial hurdle, often ranging from 2% to 5% of the purchase price. In addition to your down payment, it’s important to save for these expenses, which can include attorney fees and other miscellaneous costs.
3. Lower Your Mortgage Rate. Discuss options for buying down your interest rate by purchasing points. This can lower your monthly payment and make home ownership more affordable. Focus on your overall monthly payment rather than just the interest rate to find a comfortable financial range.
And for some additional tips, make use of savings accounts with higher interest rates to grow your down payment fund more efficiently. Also, work closely with your real estate agent and lender to explore different mortgage options and down payment programs that might benefit you.
With these strategies, it will be an easier home-buying process that will increase your chances of finding the right home. Remember, more homes are coming onto the market every day, so stay connected with a reliable real estate agent who can help you find a property that meets your needs. If you have any questions or need further assistance, feel free to call or email me. I look forward to working with you!
