So, you’ve decided you’re ready to buy a new home? Congratulations! Now you’re probably asking yourself, what’s the next step? There are plenty of things you can do to prepare yourself for the next step on your homebuying journey, and we listed a few below to help you on your way!
- Know your credit score. A good credit score is essential to any new or prospective homebuyer. It gives your lender insight into how reliable you are as a borrower, and ultimately, whether they will lend to you or not. To obtain a free credit report, go to annualcreditreport.com and enter your information. Once you have accessed your reports, you can review and dispute any errors you find.
- Consider taking a home buying class. Homebuying classes can prepare you for things you may have not even thought about as a new homebuyer. These classes can give you information on saving for a down payment, searching for the right mortgage loan program for you, working with a real estate agent and so much more. They are a great way to get answers to questions you didn’t even know you had.
- Implement financial planning techniques. Saving towards any large monetary goal doesn’t happen overnight. Consider implementing money-saving techniques 3-6 months before purchasing your new home. This can be by setting up automatic transfers to a savings account, savings bonuses, raises, or tax refunds, applying for a credit card with cash rewards, and by not taking on any new unnecessary expenses, such as a new car payment or lease. These simple actions can make all the difference when you’re finally ready to make your big purchase.
- Get pre-approved. It is helpful to get pre-approved for your mortgage loan early on in your homebuying journey. Getting pre-approved will allow you to set your budget, which in turn helps you narrow your search.
- Communicate regularly with your lender & realtor. One of the most important ways to prep for buying your new home is by consistently communicating with your lender and realtor, so they can help with any questions you may have. The home buying process can feel overwhelming for anyone, regardless of it being their first home or their fifth. Clear and open communication with your real estate professionals is the best way to create a seamless homebuying experience.