Is buying a home on your list of 2021 resolutions? Even if it’s something you’re just considering, there are some steps you can take to be better prepared to jump into the home buying process in 2021. Whether you’re a new homebuyer or you’ve been through the process before, here are several ways you can prepare to buy a home. The new year is just around the corner, let’s get started!
Check your credit
When was the last time you checked your credit? Your credit score is an important factor when your mortgage lender considers what type of loan you qualify for, as well as the amount of the loan. You can access one free credit report per year from each of the major credit reporting agencies so you can keep an eye on your credit report. If your score needs a boost, there are several ways you can bump it up (like paying bills on time, paying off debt, and disputing inaccuracies on your report), but remember that none of these are quick fixes.
Create a budget
If you don’t already have a budget, now’s the perfect time to create one. Creating a budget is the best way to figure out how much mortgage you can afford. What is your current housing cost? Can you afford to pay more or do you want your monthly cost to stay relatively flat? Don’t let creating a budget overwhelm you - with just a few steps, you can be on your way to a financial roadmap that works for you. Dave Ramsey has a great resource on how to get started.
Assemble your real estate team
Before you get too far into the process, you’ll need a great real estate agent and a loan officer. You’ll be working closely with both of these people throughout the real estate process, so it’s important to find real estate partners. Make sure they are knowledgeable about the location you’re looking to buy a home, aligned with your goals, and dedicated to making the process smooth. Hint, hint - if you’re looking for a real estate agent, you can always reach out to me for a quick conversation.
Identify your ideal location and your must-haves
Narrow down your search location and outline the features you must have in a home. What are the things you aren’t willing to sacrifice? For many people, it’s location. For others, it’s the number of bedrooms. Whatever your needs are, make a list of the things that are non-negotiable. This list will come in very handy for your real estate agent as they are sorting through available properties to find you the perfect house!
Is 2021 your year to buy a home? Maybe it is! With a few considerations and preparations, you can put yourself in a great position to purchase a new house. Even if you’re only thinking about the possibilities, I’m always happy to talk to you about how I can help, so don’t hesitate to reach out to me at 8Z Real Estate.