Carmen Cotto-Rivera
Real Estate Broker Salesperson

"Love Where You Live, and Live Where You Love"

Vylla Home 
office: 856-206-0413

Cell:  201-835-5650

NOW LICENSED IN PA!!!!

CARMEN COTTO-RIVERA

ESPAÑOL   

   "Love Where You Live, and Live Where You Love"

Vylla Home - office: 856-206-0413

cell:  201-835-5650

Paragraph

NOW LICENSED IN PA!!!!

Real Estate Broker Salesperson

How To Prepare Now to Buy a Home In This New Year

How To Prepare Now to Buy a Home In This New Year

Buying a home takes a lot of preparation and planning. It’s important to get your finances in order and other tasks done before you even start house hunting!

Keep in mind that this early stage of the buying process doesn’t happen overnight. It takes time on your part even before we start working together.

That way when you are ready to make your move, you confidently move forward to make that new home you just saw YOURS.

The only way that can happen smoothly is if you do your homework first, so start prepping and planning now if you want to buy a home in the months ahead or even a year from now.

My list below will help you stay on task. You’ll be ready to buy in no time:

Do Your Homework

Here are some key activities you should do now:

Learn about mortgage options. Do you understand how mortgage rates work, such as fixed rates or ARMS (adjustable interest rates mortgages)? Or the difference between a FHA loan and a conventional loan? Learn what’s available now and even the outlook for rates in the coming year so you aren’t overwhelmed or surprised later on. This way you can determine what type of financing will be best for you.  You can reach out to me and I can give you some lenders with different loan products that may fit your budget. 

Explore neighborhoods and open houses. Check out certain neighborhoods in terms of cost and features of homes. Internet sites such as Realtor.com or MLS.com will include open houses and current listings. Actually, walking through homes can help you explore your wants and needs in a more direct manner. Get a better feel on what’s important to you, such as location, large kitchen, backyard, open-concept, or size of rooms. With condos, you’ll also get an idea of monthly HOA fees, if applicable, and amenities in different buildings.

The time spent “scoping out” homes provide a reality check and will make you more efficient when it comes time to really house hunt!

Find out about assistance programs for buyers.  Did you know that there are government assistance programs that can make buying a home much more affordable?  You’ll be amazed to see what is available for mid-income buyers, first-time buyers, veterans, etc.  Programs from local housing authorities can help with down payment or low interest loans; and many buyers can qualify for assistance. 

Don’t disqualify yourself before you try.  If you want to explore more, just reach out to me and I can go over with you what’s available in the local areas that you are interested in.   That way, you’ll have more confidence that you can become a homeowner.

If you haven’t already, check out my previous Love Buying A Home” series [Click Here for link to the intro].  This series provides an overview of everything when it comes to buying a home, and it will take you step-by-step from start to finish.

Get Your Finances In Order

Buying a home is probably THE biggest expense you will ever have in your life. You want to be a responsible buyer and homeowner, so now is the time to focus on your finances. Dont do anything that could disrupt your good credit!

Strengthen your credit score and build credit history. Your FICO credit score is your gateway to a good mortgage since lenders use it to determine your risk as a borrower.  So, the higher your score, the better your loan options. And, if you’re a couple, then BOTH of you will need to work on your credit!

It can take 6 months or more to improve your score, so start today. Pay your bills on time, don’t take on any large debt, and double check your score for inaccuracies.

Know what monthly mortgage payment you can afford.  I have a “Rule of Thumb” when it comes to determining affordability.   For every $10,000 change in price, your payment only changes by about $65-70/per month (depending on the current interest rate).  So, don’t be too tied to the big number, instead focus on what you want to pay per month.  Plus, what a lender says you CAN afford can be very different from what you are willing to spend each month. No one wants to be stretched too much and become “house poor.”

Work backward from your desired monthly payment to calculate the price range you can afford. I can show you how to budget for a home and determine what you can afford.

Save for a down payment. Cut expenses and save, save, save (maybe find a high-yield savings account) right now!  No matter if you get a 3% down loan or a conventional 20% down loan, lenders still want to see if you have enough cash reserves in the bank.

Remember, owning a home isn’t only its purchase price, but it includes other costs such as taxes, insurance, maintenance, and possible HOA fees. With a larger savings account, a lender knows you’re financially responsible and less of a risk.

During this time, you can even “play house” and see how you handle living with your “affordable” monthly mortgage payment. Can you handle it?

Stay Focused with These 10 Commandments

You need to avoid some risky actions that could derail your ability to get a mortgage loan.  Ignoring just ONE of these items can ruin your chances for qualifying for the loan you want.

1. Thou shalt not change jobs, become self-employed or quit your job.

2. Thou shalt not buy a car, truck or van (or you may be living in it)!

3. Thou shalt not use charge cards excessively or let your accounts fall behind.

4. Thou shalt not spend money you have set aside for closing.

5. Thou shalt not omit debts or liabilities from your loan application.

6. Thou shalt not buy furniture.

7. Thou shalt not originate any inquiries into your credit.

8. Thou shalt not make large deposits without first checking with your loan officer.

9. Thou shalt not change bank accounts.

10. Thou shalt not co-sign a loan for anyone

As you can see, start planning now if you want to buy a home this year. Youll be a more informed buyer and borrower and will be ready to purchase a new home with confidence and less stress!

And know that I can help cut through the overwhelm, especially after the crazy market we had over the last year. We can schedule a time to meet, and I can walk you through how you can make a new home happen for you, no matter what you think might be an obstacle in your way right now.  I’ve most likely helped a client overcome the same hurdle before and I’d love to help you too.

What You Need To Know Before Buying Your First Home!

Hi, there!

I'm Carmen and I love helping first time home buyers, including Spanish speakers,  buyer their first home.  I also love helping sellers looking to move up or downsize to their next home.  Let me know how I can help you make your real estate goals come true. 

Let's Meet

Contact

201-835-5650

921 Pleasant Valley Av
Suite 200
Mt. Laurel, NJ  08054

ccr@ccrsellsrealestate.com

Buyers:  tips and advice on buying your first home

My Listings (and their stories)

Sellers: tips on home maintenance and prepping your home for sale 

Blog

schedule your free consultation

Hi, there!

I'm Carmen and I love helping first time home buyers make their first home more affordable and I love helping sellers looking to move up to their forever home. Let me know how I can help you make your real estate dreams come true. 

schedule your free consultation

Buyers:  tips and advice on buying your first home.

My Listings (and their stories)

Sellers: tips on home maintenance and prepping your home for sale 

Blog