{"id":1797,"date":"2020-01-08T23:17:44","date_gmt":"2020-01-08T23:17:44","guid":{"rendered":"https:\/\/www.homeinsuranceking.com\/blog\/?p=1797"},"modified":"2020-01-08T23:17:47","modified_gmt":"2020-01-08T23:17:47","slug":"is-2020-the-year-you-become-a-homeowner","status":"publish","type":"post","link":"https:\/\/www.gethomeinsurancequotes.com\/blog\/is-2020-the-year-you-become-a-homeowner\/","title":{"rendered":"Is 2020 the year you become a homeowner?"},"content":{"rendered":"\n
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If you are thinking about buying a house this year, we are here to help. While home prices are still hovering around all-time highs and in most cities, it is still a seller\u2019s market, there are plenty of signs that home prices could be headed down. <\/p>\n\n\n\n

Election uncertainty, a peak real estate market and the fact that the price per square foot is at an all-time high in many places could result in a stalling market that leads to lower prices, making 2020 a great time to enter the real estate market. <\/p>\n\n\n\n

The home buying process can be intimidating, especially for first time buyers but our guide below should help make the process a bit smoother. <\/p>\n\n\n\n

Here is a quick rundown of what you need to do to get on the property ladder in 2020. <\/p>\n\n\n\n

Decide on a budget<\/strong><\/h2>\n\n\n\n

One of the first thing you need to decide on is a budget for the home. Look at your household balance sheet which should consider your debt, income and assets. Be sure to include new expenses that will come with homeownership such as estimates for property insurance<\/a>, taxes, as well homeowners association fees if applicable.<\/p>\n\n\n\n

Examine your balance sheet and down payment to determine exactly what you can afford on a monthly basis for a mortgage. In many cases a bank may be willing to lend more than you can comfortably afford so avoid buying a house that is beyond your budget. Decide on a budget and stick with it, being house poor can be frustrating and may result in you losing your home if unexpected bills or illnesses pop up. <\/p>\n\n\n\n

However, if you live in a major metro area, most homes may be out of your budget range. As an example, if you live in San Jose, California<\/a> where the median home price is $1.2 million dollars you may need to think outside the box to getting on the homeowner ladder. Housing experts advise homeowners to consider looking for a \u201crent to own\u201d property which means you rent the home at first with an option to buy sometime in the future. In extremely expensive cities you may have to consider a smaller house or condo.<\/p>\n\n\n\n

Check your credit<\/strong><\/h2>\n\n\n\n

As you start your journey into homeownership be sure to pull your credit report and check your credit score which will impact the interest rate on your mortgage. Mortgage lenders tend to offer their best rates to applicants that have a good credit score. In order to qualify for a conventional loan you will need to have a credit score of 620 or better. While it is still possible to secure a mortgage with a lower score, your interest rate will be higher. <\/p>\n\n\n\n

If your credit score<\/a> is not where it needs to be you may want to hold off buying a home until you can improve your score so you can secure a lower interest rate.\u00a0<\/p>\n\n\n\n

There are a number of steps you can take to improve your credit score:<\/p>\n\n\n\n