Delmar Mortgage

Your New Year Resolution

Home Buying

The beginning of the new year is an exciting time; equal parts reflection and retrospection, as well as a time for planning and goal-setting. There’s one goal that should be at the top of everyone’s list – preparing to buy a home!

    Make Buying a Home Your
    New Year Resolution

    It’s that time of year again; a brand new start to a brand new year, full of unlimited possibilities. The beginning of the new year is an exciting time; equal parts reflection and retrospection, as well as a time for planning and goal-setting. For a lot of people, especially after the holiday season full of hearty food and drinks, that might mean a commitment to a healthier life. For others, there might be more personal development goals like going back to school or preparing for a career change. However, there’s one goal that should be at the top of everyone’s list; preparing to buy a home. 

    While it’s clear that the housing market has had a tumultuous time since the COVID-19 pandemic, buying and owning a home remains one of the most established ways to build both wealth and assets. It can also be fun; after all, you can finally start to design your dream home and turn your visions into reality! 

    It can also be a daunting process; after all, there are major questions you might not know the answer to. Questions like, “What kind of loan do I need?”, “How much do I need to save for a downpayment?”, and “What credit score do I need to have?” are all common FAQs that first-time homebuyers might have. 

    With so many questions like these and others, it’s hard to know where to start, let alone how to make a resolution and a plan! Not to worry. Delmar Mortgage remains committed to standing Right by You, to help you plan and navigate the road to homeownership. In this article, we’ll break down some easy tips and tricks for you to use in 2023, so that you can be ready to switch from being a homebuyer to a homeowner, either later this year or into early 2024! 

    Where do I

    This is the big one; how in the world does one start preparing to buy a home? 

    First things first, you need to get a full idea of what your financial situation looks like. This means you need to have a full understanding of everything, including: how much cash you currently have access to in savings and checking accounts, how much money you owe in auto loans, credit card debt, and student loans, how much money you make from income every year, how much you have in assets and stocks, your credit score, and more. Everyone understands that you should put away some significant money for a downpayment on a house, but the house-buying process is a little more complicated than that. Taking the time to review your finances can give you an idea of what kind of funds you have to work with, which is important for thinking about how much you can afford in a down payment, how much total you’ll need to take out in a mortgage, and how expensive of a house you can afford. 

    In addition to examining your finances, you’ll want to consider some more practical aspects. Think about factors like which part of your town or city you’ll want to live in, proximity to work, access to grocery stores, gas stations, gyms, and more. If you have a family, you’ll want to think about the school district and educational opportunities nearby, as well as how accessible main roads and highways may be. You’ll also want to ensure that any homes you want to consider are in safe parts of town, particularly if you think a family or children might be in the future. 

    Don’t forget to think about how you’d like to decorate or design your new home. If you’ve ever wanted a crafting room, home gym, home theater, personal office, etc. now is the time to plan for that! Don’t be afraid to dream big when it comes to your future home. 

    Feeling overwhelmed? That’s okay! We’re here to help you however we can. Click here to talk to a Delmar Mortgage loan officer about any questions you might have! 

    Planning for a Home
    In the New Year

    The best time to start saving a house is right now. If you want to be a homeowner by this time next year, there are a few simple steps you can take to start saving money and make sure your financial history looks as prepared and respectable as possible for a future mortgage provider or lender. By committing to this New Year’s resolution, you’ll find that the actions you take over the next year will pay dividends for every new year that follows. 

    For starters, you should do everything you can to pay off whatever debt you have. If you have an outstanding balance on your credit card or cards, try to pay that balance off as quickly as possible. The same goes for things like auto or student loans; if you can eradicate any of these debts before trying to apply for a loan, you’ll find yourself in a better and more favorable position, and might even qualify for better interest rates. 

    Another easy step is committing to dedicate a percentage of your paycheck each week towards a savings fund for the downpayment on your house. If you’re in a relationship, have a conversation with your significant other about what percentage per paycheck you can both set aside for when the big day comes to turn that house you’ve been eyeballing into a home. 

    With this, it’s important to find ways to save money where you can. This might mean cutting back on things like dining out, ordering deliveries, shopping online, and more. Obviously, this might not sound like a lot of fun, but besides saving money, your lender will also see that you’re able to be financially responsible, which is huge for acquiring a loan. 

    This might go without saying, but it’s important not to make any large purchases, especially anything you’d need to finance, during the year or year and a half before you go to apply for a mortgage. This means no vehicles, no large TVs or electronics, no “toys,” etc. Similarly, you might not want to take a vacation in the year leading up to buying a home. You want to show lenders that you’re a responsible applicant, and in doing so you’ll save money that can go toward your dream home. 

    Planning for a home can be a daunting process, but by committing early at the start of the year, and staying disciplined throughout the year, you’ll find that this resolution can set you up to successfully buy a home. This one year can set you up for major success for the rest of your life. So get ready to ring in the new year, and with some luck, this time next year you can host your New Year’s Eve party in last year’s resolution! 

    Don’t forget to contact Delmar Mortgage today about any questions, concerns, or comments you have about the home buying process! 

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