Financial Prep for 2024 Home Buying

With 2024 on the horizon and the start of the Fed’s reduction of interest rates, the time to start preparing for your dream home is now. With the proper planning and prep work, you can take a lot of stress out of the process.

Assess Your Financial Health

Start with a thorough review of your finances. This means checking your credit score, evaluating your debts, and understanding your income stability. A healthy credit score can secure you more favorable mortgage rates but doesn’t necessarily. Consider using this time to improve your credit by paying down debts and avoiding new credit inquiries such as buying a car.

Save for a Down Payment & Budget for Additional Costs

While there are mortgage options available with low or no down payment, saving for a substantial down payment (20% is ideal) can significantly impact your loan terms, and interest rates, and eliminate the need for Private Mortgage Insurance (PMI) which can often add a few hundred dollars to your monthly payment. Open a dedicated savings account and automate your savings to steadily build your down payment fund.

There are also other options, such as zero-down FHA loans, which our team can guide you through.

There are also other costs beyond the mortgage payment, mortgage insurance, including property taxes, homeowners insurance, routine maintenance costs, and potential HOA fees. Additionally, be prepared to cover closing costs, which can range from 2% to 5% of the purchase price and can be a few thousand dollars. Start setting aside funds for these expenses to avoid surprises (and stress) at closing.

Get Pre-Approved & Work with Local Experts to Better Understand the Market

Pre-approval gives you a clear idea of how much you can afford and shows sellers that you’re a serious buyer. Working with experts in the local area such as our team is an amazing way to maximize your time to choose the best possible mortgage option for your situation.

Partnering with a real estate agent who has in-depth knowledge of the local market. They can provide valuable insights, recommend properties that fit your budget and preferences, and negotiate on your behalf. Similarly, a local mortgage professional can guide you through the financing process, ensuring you find a loan that perfectly fits your financial situation.

Preparing financially for home buying in 2024 involves more than just saving for a down payment; it's about comprehensive financial planning and understanding the local real estate landscape. By taking these steps, you'll position yourself as a well-prepared buyer which can reduce stress and make your odds of being able to grab your dream home in a competitive market. With over 50 years of mortgage experience, our team can walk you through everything you’ll need to make the process seamless.