10 Tips to Help Buy Your New Home in the New Year

New years are for new goals and fresh starts. And if you want to achieve your biggest goals in life, it's critical to have a strategy in place.

If you're one of the many people who have set your sights on buying a new home in 2022, we've got some ideas to help make the process go as smoothly as possible.

First and foremost, establish a good credit history. Your credit score is one of the most important aspects in determining your interest rate and mortgage qualification. By improving your credit score, you may save hundreds if not thousands of dollars throughout the length of your loan.

Your down payment is also an essential aspect of purchasing a home. Most local builders require a substantial down payment. Overstreet Builders requires 14% to start building.

While there are several options to take out a loan with a small down payment, or no down payment at all, it's always best to have money saved. Even just for the unexpected costs of moving! 

And the more you save up for a deposit, the lower your monthly mortgage payments will be. You can also forgo the expense of paying for private mortgage insurance if you have a deposit that meets or exceeds 20% of the home's price.

Getting pre-approved for a mortgage is one approach to help boost your chances of buying a home this year. This demonstrates to sellers that you're ready to get out there and buy. You'll have an idea of your maximum home price range, what you qualify for, how much interest you'll pay, and how much money to start putting aside for the down payment.

Look into the cities and neighborhoods where you want to buy. Understanding the housing market (and its current trends) will help you make an educated decision. If you see homes in your price range, but for less than half the cost of one in another neighborhood, consider what makes that location so desirable. Are there higher crime rates? Is it further away from your job? How's the school district? All of these factors will influence the local market and how far you can stretch your budget.

When you buy a home, you don't just pay your monthly mortgage payment. You'll also have to pay for utilities, transportation expenses to work or school, property taxes, and homeowner's insurance. Make sure to research the local cost of living so you're aware of how much your monthly expenses will actually be when all is said and done.

The only way to get a real feel for your potential new neighborhood is to stay there. Rent an Airbnb for a weekend, dine out at a neighborhood restaurant, talk to the locals...You'll get a good sense of what it's like to live there full-time and if you feel comfortable with the surroundings. Overstreet Builders offers gorgeous communities in the Chicago suburbs. Or if you find an area you really adore, we can build on your lot.

When it comes to moving, the less you have to move the better. Start packing sooner than later and get rid of anything you don't need. Holding a garage sale, donating to charity, or giving away to friends and family are all great ways to lighten your load before moving day.

There are a variety of mortgages to choose from, so it's important to find the one that best suits your needs. A fixed-rate mortgage offers stability and predictability, while an adjustable-rate mortgage may have a lower initial interest rate. If you're looking for a home but don't have a lot of cash on hand, an FHA loan may be your best bet. Your choice in mortgage will largely depend on the amount you're borrowing and your down payment.

It's easy to get caught up in the excitement of what color to paint the living room or where to put the home office... But there are more important things to consider when buying a home (especially a pre-owned home!). 

Before you sign any purchase documents, hire a home inspector to thoroughly examine the property. They'll look for things like structural damage or faulty wiring that may become an issue down the road. 

If you're buying a new construction home, you can skip the stress of this step. A newly built home doesn't have the same hidden surprises or defects of an older home. Plus, Overstreet Builders has a solid warranty program to give you peace of mind!

In the current seller's market, you might feel pressure to put in an offer right away. But it's never a good idea to buy a house on impulse. Make sure the home you choose is "the one." If you've done all your preparation and still don't feel like this is the home for you, hold off on putting in an offer or make sure you have contingencies that will allow you to back out.

What better way to ring in the New Year than to buy a home you love? Let Overstreet Builders help you make your New Year's resolution a reality. We'll take care of everything so that the process of buying your new home is stress-free! Contact us today.