What To Get Ready Before You Start Your House Hunt
/As excited as you might be to buy your first home and to reach the next big milestone in your life, it is not something to be rushed. You need to put in the careful preparation to ensure that you have everything you need. Otherwise, you can face roadblocks, delays, and missed opportunities that can make things way more frustrating than they need to be. Before you start scheduling viewings, make sure that you’re in the right place for the journey ahead. The steps below can help you do that.
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Your Budget
First and foremost, you need to know what your budget is before you go househunting. Having a good idea of how much you can afford to pay will help you narrow down your search, preventing the disappointment of viewing and falling for a property only to realise that you can’t make the payments for it. Include not just the price of the home itself, but also the additional costs that come with buying and maintaining a property, such as taxes, insurance, as well as any maintenance and repairs costs, which even brand new homes are going to need over time. Getting into the money side of things can feel like a splash of cold water, but it is essential.
Your Credit Score
Of course, the majority of what you pay for when buying a home is going to be in your mortgage. Before you go looking for one, however, make sure that your credit is in the best place it can be. It plays a key role in what mortgages are available to you and how much lenders can put their faith into you. A higher credit score can mean lower monthly payments and better loan terms, potentially saving you thousands over the life of your mortgage. Take the time to check your credit score and request a credit report (which you can get for free once a year) to see if there are any errors you can dispute or black marks you can erase by, for instance, getting current with loan payments or paying off what you owe.
Your Mortgage
Once you have your credit in good order, it’s time to get pre-approved for a mortgage. This is an easy way to show buyers that you’re serious about buying a home, even if you can’t get the mortgage itself until you have the home purchase ready to go through. During the pre-approval process, a lender will review your financial information, including your income, credit history, and debt-to-income ratio. Once approved, you’ll receive a letter stating the amount you qualify for, which can help guide your home search. Sellers are a lot more likely to accept an offer from a buyer who can show that they are able to get the financing necessary, so it’s wise to avoid viewings and negotiations until you have this in place.
Your Wants And Needs
Once you know that you have your financials in the right place to make the purchase, it’s time ot think about what it is, exactly, that you want to buy. To that end, establishing a clear idea of your wants and needs, in an itemised list form, can help you streamline the process of choosing homes ot look at. Specifically, knowing your needs, the vital must-haves of a home for you, can help you eliminate any homes that don’t meet those criteria. It’s very easy for buyers to fall in love with a place, only to later realise it doesn’t do what they need it to, which leads to some serious buyer’s remorse.
An Understanding Of The Market
The real estate market is a place of continual change, with properties entering and leaving the market all the time. If you don’t keep an eye on it, it’s very easy to miss your opportunity to buy when property prices hit a low. Take the time to find your next home on online listings, and keep checking them even as you’re viewing properties, to make sure that you don’t miss any opportunities that better meet your needs. Pay attention to how long homes are staying on the market and whether prices are rising or falling. If homes are selling quickly and above the asking price, you may be in a seller’s market, meaning competition is high. If homes are sitting on the market for a while or prices are dropping, it could be a buyer’s market, giving you more negotiating power.
The Right Help
With all of the above in place, you should be much better prepared to make more informed and sensible choices when navigating the housing market. However, that doesn’t mean that you have to go it alone. Navigating the home-buying process can be overwhelming, which is why having the right professionals on your side is essential. Two key people you’ll want to work with are a real estate agent and a home inspector. The real estate agent helps you find homes that fit your wants and needs, negotiates with sellers, and guides you through the step-by-step of buying a home, including all of the paperwork and legal aspects that can often feel very complex. Meanwhile, a home inspector plays a vital role in assessing the condition of a property before you buy it, making sure that you know precisely what you’re getting.
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Your Readiness To Work
Not all homes are going to be ready to move into as soon as you buy them. Some are going to need upgrades and renovations to meet your standards. As such, you should have a good idea of how much work you’re willing to do on any home that you buy. If you’re not comfortable with extensive renovations, focus on homes that are already in good condition. But if you’re willing to put in some work, you could find a great deal on a home that just needs a little TLC.
It’s very easy to start imagining your future life in your new home and to let your enthusiasm take the reins, but it’s rarely a wise strategy. Take the time to sit back, think, and ensure that all of your preparations are in place so you’re in the best possible position for buying a home.
This is a collaborative post.
