It is easy to overspend during the holiday season. But with home prices and interest rates starting to rise, if you want to be a new homeowner in 2011 you should plan ahead, and start now.
1. Minimize your holiday spending. Not many folks in this economy will expect you to overspend to give them presents this season, so be frugal and put any extra cash right into savings. If you are serious about buying a home next year, don't run up additional credit card debt on gifts. This includes your kids, who can probably do with less Stuff anyway.
2. Find a high-interest savings account, probably online, and open a New Home account. Set up an automatic deposit, in any amount, so you will have the discipline and reward that come with regular savings. If you are starting off with some money, look ahead to 20% downpayment to get the best interest rate. If you are cash-poor, think of 3.5% for a FHA loan. Add 3% more for closing costs and loan fees to your savings goal. To be able to purchase a $200,000 home in Hamilton, NJ, that means about $13,000 to cover your downpayment and fees.
3. Now is our slow real estate time, with bad weather and short daylight hours. Use the time to become familiar with neighborhoods, communities, and schools you will consider, home prices there, and amenities. I was born and raised in Mercer County, so can answer your questions on real estate values in any area. Also set up a personal search for home sale prices on my site, http://www.joegiancarli.com/ .
4. Get copies of your credit reports (AnnualCreditReport.com) from the main 3 credit bureaus, and work on clearing anything that isn't yours or improving the score.
5. While you are working on the numbers, get comfortable with what you can afford in a monthly house payment + taxes + insurance + reserve for repairs. Know your buying power. Again, email me and I can recommend lenders who - free of charge - can preapprove you for a loan.
Buying a home is a serious decision, and if you start now, you can be ready when Spring comes and you are ready to actually preview some homes. Let me help - call or email with your home buying questions.
Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
http://www.newjerseynewhomes.blogspot.com/
www.activerain.com/blogs/josephgiancarli
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