I’m on vacation right now but when I get back, I’m going to write a post all about 2013, what worked, what didn’t, etc. but for now I’m thinking of all the people with really big goals for 2014.
I’ve been seeing a few New Year’s Resolutions from people who want to buy a house this year or people who really want to whip their finances into shape. I think that’s awesome, mostly because I can live vicariously through them (because you know I’m not going to be buying a house anytime soon, which I explained in this post.)
Still, for everyone who wants to buy in 2014, here are some things to think about:
Your Credit Rating
Keeping your credit rating high is incredibly important, as it greatly affects your ability to get a good interest rate for your mortgage. Even .5% or 1% of difference in your interest rate over 30 years can mean saving thousands and thousands of dollars. So, make sure to get a free credit report and solve any adverse credit issues before talking to a lender.
Most lenders will offer you an APR after an assessment of your credit rating. Those with anything less than a squeaky clean credit rating won’t be applicable for the typical rates and will be offered higher interest rates. There are companies that will give mortgage loans to those with bad credit (my readers abroad can check out Just Bad Credit Mortgages for example) but the best thing to do to get the best interest rate is to make sure your credit rating is as awesome as possible.
Live Within Your Means
Remember when I had a bit of a rant about all the crazies on HGTV? Yeah, please don’t be one of them. Just because you get approved for a certain # when buying a house doesn’t mean you have to spend that amount. Sit down and create a budget or at least look at how much money you’ve spent over the past few months. That will help you determine what you can afford. Don’t forget to factor in life’s little surprises that all homeowners have to face like plumbing emergencies, etc.
Ultimately, if you plan on buying a house this year, all the best of luck! We’re cheering you on and hoping that you get the best interst rate and make wise decisions about budgets and what you can afford.
How many of you will be moving or buying/selling a house this coming year?