07/06/2023
If you’re looking to become a homeowner, here are some tips to keep in mind:
- Work with a real estate agent. Although the housing market is showing signs of cooling, now’s not the time to embark on a purchase without someone to guide you through the process, especially if you’re a first-time homebuyer.
- Shop around with multiple mortgage lenders to make sure you’re getting the best deal. It’s not just about interest rates, but the all-in costs & other terms/conditions on your loan. Different lenders have different programs available to match what buyers need.
- Make a budget. You don’t want to wind up with more house than you can afford. Keep that budget going once you move, too. In Bankrate’s survey, the top regret for millennial homebuyers was maintenance & hidden costs being more expensive than expected - a whooping 42%. Be ready to cover the ongoing expenses, plus whatever issues inevitably crop up.
- Be strategic in financing home renos. Using credit cards to pay for home improvements is a risky move, considering their double-digit interest rates: average interest rate on credit cards as of mid-May was just above 20%, according to Bankrate’s national survey of lenders. In contrast, the average rate on a home equity line of credit (HELOC) was around 8%. The interest could be tax-deductible as well, if you itemize on your return. You could also consider a home equity loan, which offers a slightly higher, but fixed interest rate.
Picture courtesy of jessebridgewater
