Clean up your credit before buying a home
Cleaning up your credit is probably the most important thing you can do for yourself in order to buy a home.
First things first - pay your bills on time! It’s a good idea to set up auto alerts so you don’t miss a payment. Set it up to alert you a few days before, so you can pay your bill on time. You can also set up a payment to be paid automatically from your checking account so you don’t have to even worry about it.
Avoid opening up a million credit cards – you don’t need them, keep your cards to just a few and only use them if you have the cash to pay them off in full at the end of the month.
Trying to get a good deal in a seller’s market may be difficult
A seller’s market is when real estate conditions favour the homeowner who is selling. Typically, there are not enough homes for sale to meet the demand from home buyers which creates an undersupply. Competition can be fierce amongst home buyers and you must be ready to go for it as soon as a home comes on the market that would suit your needs.
When a home is priced correctly and presents itself well, it will sell fast, and expecting a “good deal” when homes are in short supply is not the norm. More times than not, several home buyers will do whatever it takes to “win” the home where you often see a buyer’s offer coming in above the home’s list price. This type of offer is more apparent when a home buyer has been defeated in the past having lost out on a home they wanted to buy and will pull out all the stops to make sure it doesn’t happen again.
A real estate market may differ from area to area - be open-minded about what you read in the news
There are different real estate markets and simply because the news claims there’s a certain prevailing type of market, don’t presume all communities are the same - real estate markets will vary. Dubai has always been spoken about as a whole but when broken down into differing communities, there may be different stories to those you are reading. The demand for certain properties can differ depending on property location and even type!
That you need to cut back on spending on luxuries
Once you feel like you’re on track and your mortgage pre-approval has been approved you can get extremely excited and start thinking about how you’re going to decorate and furnish your brand new home.
However, wait that little bit longer before making the large purchases. Remember that your pre-approval has been approved but you are still waiting on your final mortgage approval and you don’t want to detriment that by maxing out your credit card!
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