Everyone wants to time their home purchase “just right.” Ideally, the best time to buy a home is during a buyer's market, where there is plenty of well-priced listings, interest rates are low, and the buyer has plenty of time to decide on an offer. The reality is that the current market is a fast paced environment where the best homes move quickly and serious home buyers need to be prepared to act when they find the right home.
Fortunately, starting your home search the right way is easy by following these simple tips:
1. Find a lender and get pre-approved
A pre-approval letter demonstrates to sellers that you are serious when you write your offer and it proves you can afford the home. This will also allow the under contract period to go smoothly, because you are already approved for the home's list price.
2. Make sure you know your budget!
This goes along with the previous step. Once you find out the maximum dollar figure you have been approved for, take a look at your expenses and determine what number you feel comfortable spending on a house. Most experts recommend spending no more than 30% of your income on housing. When you determine your budget, do not stray from it! This will make sure you don't experience financial stress in the future.
3. Make a list of must-haves and like-to-haves in your future home
There is a difference between! Must-haves tend to include a specific number of bedrooms/ bathrooms, location, or is there a garage. Make a list and be ready to compromise when appropriate by ranking the items.
4. Research the different neighborhoods you're looking at
Each community will have their own personality and advantages. Before you start looking at homes, do a little research on the areas you would like to live. This can include driving around the neighborhood, looking at the nearby schools, and researching how safe it is.
5. Take notes of the different houses you visit
Often a home buyer can see multiple homes in a single day. Take notes, and if possible, take pictures so you can remember the things you like, and don’t like, about the homes you see once you get home. This will help narrow down which houses you can see your family living in.
In a fast paced real estate market, spending some -me preparing for your home search will help you move quickly when you find the right home for you and your family.