Home for the Holidays?

by Kerri Cooke

The holidays can be both an exciting and stressful time. If you would like to avoid the rush of peak real estate season or happen to be ready or need to buy a home toward the end of this year, it’s important to keep a couple things in mind.

First, keep your home-buying budget separate from your Christmas spending. Don’t dip into the home account for things that might seem necessary at the moment but will be forgotten a few weeks after Santa Claus stops by. Red River Bank advises, “During Christmas, it would be best to have any accounts you plan to use for a home purchase or reserves separate from any account you will use for any present buying. It is best to set a budget for presents based on those funds and avoid any large credit card purchases. Purchasing a home is a large investment and an investment in your future, and it is worth sacrificing some in the holiday season to make that investment a reality!”

Make sure you have ample funds in a special account for downpayments and closing costs and ensure your credit score is in a healthy range. Red River emphasizes, “There are programs that allow for no money down, but once prequalified, it is best to keep your financial situation the same during the process.” If you find the perfect home, you don’t want to have to wait to purchase it and risk losing the house to someone else.

Remember to keep in mind that you’re saving money for one of the most important purchases in your life. Avoid making emotional purchases and racking up debt. Red River Bank says the mistakes they see people making the most around the holidays is “spending money that was going to be used for the home purchase or needed reserves for the loan, financing anything new during the holidays or significantly increasing credit card balances.” Any of these common scenarios could make it harder to purchase your dream home.

But if you’re not able to purchase a new home for your family in time to gather around the Christmas tree, the new year brings new opportunities. Not only will there be more houses entering the market, you can set a new year’s resolution to get your finances in better shape. Red River Bank says, “After the holidays is a great time to reevaluate your finances and connect with a loan officer. They can review your situation, let you know if you’re homebuyer-ready, and recommend steps like paying down credit cards, increasing savings or addressing other debt. With tax season approaching, a refund can also be a great opportunity to get financially ready for a home purchase and learn how to best use those funds.”

Whether you’re looking to purchase a new home this year or simply want to get yourself in a better financial position, there are steps you can take now to ensure you’re ready for your new house.

For more information about Red River Bank, visit redriverbank.net.