Hitting your home buying goals this year is a great idea, but it’s not as easy as it sounds. When most people decide to purchase a new home they already have an idea of what they want and whether or not they’re able to secure it. But in some cases, people are overwhelmed with everything that needs to get done before they can even start looking for the perfect home. So, we’ve decided to make things easier for everyone by listing down some high-level steps that you should follow to hit your home buying goals this year.
Save for your down payment
One of the best ways to hit your homebuying goals this year is to save for your down payment!
If you’re planning on buying a home, it’s important to start saving early. There are many different ways to do this, but one of the easiest is by setting up a separate savings account. This way, you can keep track of how much money you’ve saved and watch your balance grow over time.
It may seem like a lot of work at first, but once you get into the habit of automatically depositing money into your savings account each month, it’ll be easy! And don’t forget—the sooner you start saving, the more time you’ll have to grow that nest egg before it’s time to make an offer on your dream home.
Work on your Credit
Your credit score is one of the biggest factors in whether or not you’ll be able to get a mortgage. If your credit score isn’t high enough, you might have trouble getting approved for a loan, or the interest rate on your mortgage could be higher than it should be.
Not only do banks use your credit score as a way to gauge how risky it would be for them if they gave you money—they also use it as a guideline for how much money they think you’ll be able to afford monthly payments on. So if you want to buy a home this year, don’t forget about working on improving your credit!
Work with Real Estate Professionals
The housing market is constantly changing, and it’s important that you have someone on your side who understands these changes and knows how to help you navigate them. When you work with a real estate professional, you gain access to their expertise in the market and their team of experts.
Working with a real estate professional means that they’ll help you understand the current market and make sure that you’re making smart decisions during your search. They’ll also help you find homes in your budget, and they’ll be there when it comes time to negotiate on price or terms.
Get Pre-Approved
If you’re planning to buy a home, it’s important to get pre-approved for a mortgage. This means that your bank or credit union will give you an estimate of how much money you can borrow for a mortgage and at what interest rate. The pre-approval process can take several weeks, so plan ahead and give yourself plenty of time before you start looking for homes.
Pre-approval is not the same as applying for a loan. When you apply for a loan after getting pre-approved, the lender will ask for specific financial information, such as tax returns and pay stubs. You may also be asked to provide documents about your assets and liabilities.
Now that you know a little more about how to hit your homebuying goals this year, you can start taking steps to make your home buying dreams a reality. Take the time to find a loan that works for you and your financial situation, whether that’s getting a preapproval now or starting an application once you’ve found a home. From there, it’s all about having an open dialogue with your agent, so that you can make an informed decision together as buyers. If searching for your home is hitting financial roadblocks, consider setting up temporary living arrangements to lighten the burden of being a homeowner. And finally, when it comes time to buy, make sure to keep the tips in mind so that you’re ready and set up for success! If you have any questions about home buying process, reach out to us at 616.893.6478