5 Things to Start Doing NOW to Buy a Home in 2021

Buying a home is a purchase of a lifetime. It’s a major financial step that requires a lot of planning and preparation. If 2021 is the year you’ve decided you'll purchase a new home, we couldn't be more proud of you! Here are 5 things you can start doing now to make your goal of homeownership a reality this year!

1. Check your credit score and take steps to improve it.

Your credit score and credit history play a major role in whether or not you will get approval for a mortgage as well as affect the interest rate lenders can offer you. To get your free credit score visit www.annualcreditreport.com. Once you know your credit score, you can monitor and improve it over time by doing things like paying your bills on time and keeping your credit balances as low as possible.

2. Research first-time homebuyer grants or assistance programs

Do your preliminary research and see if you qualify for any first-time homebuyer programs where you can get down payment and closing cost assistance or even special loan programs with lower interest rates. Different banks and lenders offer different programs, so make sure to do your research and feel free to reach out for info on who we suggest might be the best match for your needs.

3. Shop for a lender and get pre-approved

Once you've taken care of your credit but before you officially go house-hunting, shop around with various lenders to compare their offers and find the best deal available. We are happy to give you some recommendations!

Getting pre-approved early in the process will help you know how much you can borrow so you will only shop for what you can afford. It also shows sellers and agents that you’re a serious buyer, which is so important in our current market.

4. Find a local and knowledgeable real estate agent

This is such an important piece to ensuring you have a great buying experience. A knowledgeable and talented agent will make all the difference when it comes to your home purchase. We suggest you start meeting with agents up to 12 months before you're ready to buy. That might seem like a long time, but especially in the fast-moving market we're in, the more prepared you are ahead of time ensures when the right home comes along you feel confident and ready to pounce! Your agent will not only help you with your search but also provide you with crucial information on home values and area info as well as answer any questions you have about the process and will always look out for your best interest and protect you along the way. Start getting recommendations from family and friends, read online reviews, and interview several agents before making the final decision.

5. Set up a new budget and live on it to anticipate the costs of owning a home

When buying a new home there's not only the costs of the actual purchase to think about (deposit, down payment, inspections and closing costs) but also the costs that come AFTER you buy the home too! Aside from your monthly mortgage payment, things like utility bills, repair and maintenance costs, property taxes, homeowners insurance, etc. all need to be added to the equation. With these in mind, you will have a good idea of how much you can comfortably afford per month and you’ll avoid straining your budget once you’ve become a homeowner.

Have questions or feeling ready to get started? Get in touch and we'll be happy to help!