If you’re new to the housing market, it can be extremely difficult to just pick it up in a day or two and be confident you’re getting the home that’s right for you. The market is constantly changing, you need to find homes that are in your price range, and you most likely need to get pre approved by a bank for a home loan. All of this takes a lot of time to understand, so we’re going to go over a few tips that will help you understand the home buying game just a little bit better, giving you some more security when the time comes.
Start saving early
You may not have considered this yet, but when you are looking to buy a home, you have to make a down payment. It’s normal for a down payment to be up to 20 percent, so you’ll want to make sure you’re prepared for that well in advance.
Make sure you have good credit
Checking your credit rating is one of the first and most important things you will have to do before buying a home. When you go to the bank for your pre-approval, you’ll need to have a high enough credit score for them to consider you for a home loan. Don’t fret though if you have a low credit score, you can always try to dispute errors in your credit rating and look for other ways to improve it.
You also might want to consider discontinuing any credit activity until you have a home. Lenders will be less likely to lend you if they end up bringing your credit score down.
Get a pre-approval letter
Before getting a loan, you’ll need to get a preapproval letter from your bank. What this is is an estimate of how much the lender is willing to offer you for buying a home based on your income and debts. In addition, home buyers with approval letters are more appealing to potential sellers, giving you one step up on other buyers who haven’t done this already.
Determine what you can afford
This is another reason getting pre-qualified is helpful to you. When you have a preapproval letter from a bank, you’ll be able to budget yourself and narrow down what houses you’ll be able to afford without struggling financially.
Find a great neighborhood
This is a big one, and possibly just as important as finding the actual house you want. If you have kids, you should research the schools in the area to see if they are rated highly and make sure they’re safe. If parks or community centers are important to you, you can look into that as well. You should look into this before you start looking at houses because a great house is useless if it’s in a terrible neighborhood.
Stay under your limit
Once you’ve found the neighborhood that interests you, you’ll want to start looking for your home. Always make sure you’re looking for homes under your limit and don’t keep pushing your budget higher and higher. You went through the prequalification process for a reason, and looking for homes outside your price range will make you more likely to encounter financial difficulties down the line.
Visit as many open houses as possible
Open houses are a great opportunity for you to see what it will be like to live in a home that interests you, so you shouldn’t pass up any chances you get. Often times, sellers won’t even offer an open home walkthrough to people who can’t comfortably afford the price, so this is another opportunity to get ahead of other buyers.
Determine what’s important to you
When you start doing your open home house searching, you’ll want to have a good idea of what’s important to you in a home. You’ve already established what you wanted in a neighborhood, so now you’ll want to think of all the things you can find in a home and what resonates best with you.
When you start this process, you want to make sure you aren’t getting caught up on little things like the house color. This may be important to you, but it’s something that can easily be changed after your purchase the home. However, other things like size can’t be changed. Take this into consideration as you narrow down your choices.
These are just a few of the many things you should consider when buying your first home. Although home buying can be a stressful process, it will more than pay off in the long run if you do the proper research.
Are you looking to buy a home in Sarasota? Royal Business Consulting will help you find the best home for you and your family. We sell foreclosures that have been fixed up, ready for a buyer. If you want to get a great deal on a home, contact us today to get started!