CFP Board Ambassador offers tips for home buyers struggling in a tight market
Housing shortages across the country can make home buying ferociously difficult. That frustration is especially acute for first-time buyers.
Home prices have increased by 40 percent in the last four years, according to the National Association of Realtors. Meanwhile, incomes are up only 10 percent over the same period. Americans may feel more confident in their economic future, but as they head out to buy a house, they are coming up short when it comes to taking one of the first steps toward the American dream.
In the latest contribution to LetsMakeaPlan.org, CFP Board offers four tips to help home buyers keep a cool head in a hot market.
- Run the numbers: Understand how much home you can afford to purchase and whether home ownership might preclude you from addressing other important financial issues in your life, like paying off debt. A CERTIFIED FINANCIAL PLANNER™ professional can help you understand how your housing choices can support your overall financial plan.
- Start the mortgage process and correct credit report mistakes: If you have not done so in a while, go to AnnualCreditReport.com and request your free copy. It’s important to correct any errors on the report before you start the mortgage process.
- Conduct research: Even if you are working with a realtor, check out new listings and spread the word throughout your network. You never know who might be ready to list a home.
- Keep your emotions in check: Even with limited supply, there is an inventory of houses. Be careful not to blow through your budget or put yourself in a position where you have to cover two mortgage payments.
To buy the house of your dreams in this environment, you may need to save more, look longer and pay attention to unexpected opportunities. A CFP® professional can help you prepare.
ABOUT CFP BOARD
The mission of Certified Financial Planner Board of Standards, Inc. is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for competent and ethical personal financial planning. The Board of Directors, in furthering CFP Board’s mission, acts on behalf of the public, CFP® professionals and other stakeholders. CFP Board owns the certification marks CFP®, Certified Financial Planner™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. CFP Board currently authorizes more than 77,000 individuals to use these marks in the U.S
Follow Us: Follow @BlueOceanGW