If you’ve never bought a home before, you’re in luck. Buying a home can seem like a complicated and stressful process, but it doesn’t have to be. When you walk into the situation prepared and with a real estate agent who is licensed and trained to help you succeed, the whole situation becomes a little easier. We hope that as you look on to your goals for 2020 that you aren’t overwhelmed at what needs to be done before you take that big step. That is why we want to provide you with some helpful tips to help make the process that much easier for you.
First Steps to buying a house in 2020:
- Save for a down payment
- Know your credit score
- Get pre-approved
- Select your real estate agent
Save for a down payment
The question is how much do you need? If you want to avoid additional fees you will need to have at least 20% down. If you know your budget when looking for a home, it’ll be easier to know how much 20% of $100,000 or $200,000 is. This will also help you decide if you can afford a $100,000 home, if you can easily get that 20% or not.
Know your credit score
If you want to walk into the home buying process on the right foot, be sure to know your credit score. Your credit score is very important in the home buying process. Why? This determines how much the bank is willing to loan you for your home. Unless you are a cash buyer, you will have to take out a loan.
Why do you need pre-approved? When the housing market is at its best, houses tend to go quicker than they come. If you want your realtor to move fast for you and for your offer to be taken seriously you need to be pre-approved by your bank. This way the seller knows you are serious before they turn away other potential buyers. You also need to be pre-approved because this helps you and your agent know what you can afford. Just because you get approved for a $200,000 home, doesn’t mean you can afford that much house. It’s important to understand all that comes with a pre-approval letter.
Select your real estate agent
You want to work with an agent you trust. That is so important. Your real estate agent is going to be working on your behalf. You want to know that your agent has your best interest at heart. Take your time and do your research. Search for reviews online and ask your friends who they used and their experience. You won’t regret it.
If you are ready to start looking for the home of your dreams, contact us today!