Happy 2022! Are you excited about the new year? It’s time to make some New Year’s Resolutions! With historically low mortgage rates, home price growth, and low inventory, now is the right time to make some New Year’s Resolutions for homebuyers, sellers, and homeowners!
Homebuyer 2022 Resolutions
Resolution #1: Increase your credit score
Lenders use your credit score to determine if you’re qualified for a mortgage and the interest rate you’ll receive. Your credit score comprises your current debt, billing paying history, how long the account has been open, and other factors. And a high credit score will give you a better mortgage rate, and that means less money each month going to a payment, which is saving you money in the long run. A credit score over 740 is considered very good to excellent, so that’s the number you’re aiming for. Simple ways to increase your credit score are paying your bills on time every month, keeping your credit card balances low, and avoiding opening new lines of credit. The most significant way to make a difference in your credit score is by paying down your debt.
Resolution #2: Create a financial safety net
Buying a home is a substantial financial investment for most, so you must be financially prepared for all scenarios. Before purchasing a home, you should have a down payment saved up and money for emergencies, maintenance, and any remodeling or new furniture purchases after buying a home. If you put down less than 20% for a downpayment (typical with first-time homebuyers), you can put down less money, but your monthly mortgage payment will be higher. Besides saving for the house, it’s wise to prepare for the unexpected like a job loss, an income loss, or a health scare. The easiest way to increase your savings is to cut down on your spending and set up automatic deposits to your savings.
Home Seller New Year’s Resolutions
Resolution #1: Decide when to sell
Spring used to be the most popular time to sell, but that was before the pandemic. Now anytime is an excellent time to sell (but especially now!). As we mentioned initially, mortgage rates are extremely low, as is home inventory, causing prices to be high. These are all factors that benefit sellers as they hold power in the real estate market.
Assessing the real estate market is one factor to consider when selling. Another factor to consider is your timeline. Are you getting a new job soon? Do you have kids in school, so you might wait until the school year is over? Are you buying a home using the money from the sale of your home? All these answers will help guide you to when you should sell. If you want a real estate agent’s advice on when to sell, request a home seller’s consultation here.
Resolution #2: Increase your home’s value
Now that you’ve decided when to sell your home, it’s time to fix it up. It’s normal to see wear and tear in a house after living there for many years so take the time to restore it to its former glory. On the interior, add a fresh coat of paint, replace handles on cabinets, or even do some remodeling to really maximize the value of your home, like replacing the flooring. Outside, do some basic gardening like removing any dead greenery and trimming trees or bushes.
Homeowner Resolutions
Resolution #1: Reevaluate your household budget
Since the pandemic started in 2020, many people have gone through drastic emotional, physical, and fiscal changes. Take this new year as a chance to reflect on the recent financial changes in your life. Are you working remotely now, so you’re saving on gas, dining out, and a professional wardrobe? Did you lose hours at your job, so your paycheck is smaller than usual? This month is the perfect time to update your income and expenses to be financially successful in 2022!
Resolution #2: Save money by performing regular home maintenance
We know we’re telling you to spend money now, but it pays off in the long term! By performing regular home maintenance, you’re saving a lot of money by not having surprise emergency repairs. Plus, when you sell your home, this is a factor buyers consider when looking at houses. Even if nothing needs fixing now, some simple replacements can save you money. For example, using ENERGY STAR bulbs saves you $75/year, repairing a leaky faucet will save you water and money, a low-flow toilet model can save up to $100/year, and more!
Whether you’re a homebuyer, seller, or owner, we can accommodate all your real estate needs. Let us help you reach your 2022 goals this year! contact Prism Realty today! We’re here to offer our expertise and help you achieve your real estate goals.
