Well, here we are, already into the month of May. Taxes are done and out of the way and now you might be thinking about refinancing or even buying another home. If a new mortgage or home loan is on the horizon for 2018, here are some things you can do now to set yourself up for success.
#1. Get your finances in order now to buy in June or July.
This means hold off on all other types of purchases and tell you close on your new house or on a refinance. Put your spending on hold and don’t apply for any new credit, make major purchases, or drain your bank account. Start saving up as much is you can so you have a good down payment or earnest money deposit and your credit improves over the next couple of months.
#2.Check your credit card company to see if you earn points and miles when you buy a new home.
Some lenders offer miles and points to credit cardholders who get a home loan so it’s important to check with your credit card company to see if they offer you any cashback or extra miles when applying for a home loan. However, you may need to go through their bank, which can cost you more in fees. Weigh the costs, and compare different rates, loans, fees and points with each lender.
#3. Refinance now to get a better rate.
Rates are just going to continue to go up, even though it’s fairly slow. People with existing mortgages should consider refinancing now if they can lock in a lower rate of at least 1%. Many predictions say that interest rate should go up to about 5% by the end of the year and if you’ve been thinking about refinancing, now is better than later.
Bottom line, I would make sure that your finances are in order before doing anything, and this means getting a copy of your credit history and report, correcting any mistakes or errors, and saving as much is you can to protect your credit history and your interest rate. Ready to get started? Feel free to give me a call today and let’s see what we can do.