What You Need to Know About Buying a Home in 2018
The spring housing market hasn’t yet bloomed, and that means there’s still time to get ready for it. Sellers are predicted to have an edge this year, with the inventory of homes struggling to keep up with demand. But you can compete, with the right preparation. We can tell you what you need to know if you’re looking for a new home in 2018.
Take your credit score seriously
We’ve talked about credit scores before and why they can be critical to helping you save thousands of dollars on a mortgage. The range of credit scores is 300-850. The higher your score, the better when you’re applying for a home loan. Look at your credit report, and if there are errors, work to correct them. If your score isn’t as high as you want it, improve it by making sure you pay your bills on time and make more than the minimum payment. Another tip: Don’t open new credit card accounts, even if the “20% off your purchases today!” sales pitch tempts you.
Get pre-approved for a mortgage
Your credit score can help or hinder the terms of your loan. Keep your eye on interest rates, shop around for the lender that can meet your needs, and get the paperwork done even before you start looking for a new home. Your current personal bank or credit union is a good place to start, but it might not be where you end up. Ask about the different loan products they offer to compare with others. Get a solid understanding about the related fees and closing process. Applying and securing a mortgage will also help guide you in seeking out a home you know you can afford. Doing all of this now will save valuable time when you’re ready to make an offer on a house you love.
New tax rules still give you deductions
Homeowners can still deduct mortgage interest on their taxes, as long as the interest does not exceed $750,000. The new limit doesn’t affect the average homeowners we know — and if you buy a home this year, you, too, should be able to deduct your interest in full. The same goes for your property tax deduction. In an income tax-free state like New Hampshire, the new $10,000 cap doesn’t affect us.
New home construction is on the rise
Despite the demand for homes, there is a silver lining to the competitive market. The National Association of Realtors says new home construction will be up 10% this year — that’s 1.3 million new homes around the country, including New Hampshire.
Want to see all that you could have in a new construction home? Schedule a tour with us today!