Happy Monday! I hope everyone had a blessed weekend, and you are all ready to tackle a new week! I know I am. There is just something about a relaxing weekend spent with my husband and church family, to prepare me for the week ahead.
Many of my clients have lots of questions about buying/selling and what that means financially for them. We have some great banks here in Central Illinois for loans, especially the Morton Community Bank – a small-town bank who is always willing to go the extra mile. And of course, you can always hire a financial adviser as well, to work with you on this big step of “unlocking new doors”.
Some quick tips upfront:
- Are you already a homeowner? If so, I suggest selling your previous home before buying a new one. Sometimes you can put the cart before the horse, so-to-speak. Although this allows moving to be super easy, it is not always worth the risk of two mortgage payments. It’s not always the smart choice, financially! However, if this is not an option for you, I can definitely help you with options of managing both. It is totally doable.
- If you are not already a homeowner, consider your options. Is renting the better option for you at the moment? How is your credit score? Are you going to be married? Are you planning on living in Central IL for a while, or is there a possibility you will be moving elsewhere in the next year?
- Do you have a Realtor to work with? This is super important, as we are your eyes and ears on the ground. We will represent you and be open and honest about the financial status of homes, as well as give the best advice for you, personally.
- If you have enough cash upfront, use it!
Once you have considered these tips, you are ready to dive into the financial part!
- Be sure to set aside some money for a down payment. This is huge and will help you feel much better about the entire process. Remember, the more you put down, the lower your monthly mortgage payment! However, you do not have to have 20% down. There are other options, like 10% or even 5% that may be a better fit for you.
- Be sure to always check out your options: Grant money is available for those with lower incomes, etc.
- You can order a free credit report – which allows you some time to clean up your credit if you have made some mistakes along the way. If you are struggling with a good credit score, a local lender can help!
- Find out your loan options, and work with a great lender to do so. I am always here to give advice on this step as well! A local lender is the best route to go; I will always support local. Online lenders can appear like they have better rates, etc. but do not get caught in this trap. Local lenders are able to come to the closing of the house, and they will know you personally, allowing them to give you the best service possible.
- At the moment, interest rates are so low – be sure to use this to your advantage. A local lender can assess your financial status and provide the best interest rate for you.
- Once you have found a home you love, make an intelligent offer. By knowing your stuff and being assertive within it, the seller may be more willing to negotiate.
I hope this helps all of you who are about to embark on the buying/selling a home journey. Please always feel free to reach out to me if you are ever in need of advice. I would love to walk alongside you! Have a great week, friends.