In a competitive market where homes can fly off the market in a week or less, it’s essential that buyers come to the table prepared. Here’s a list of steps every home buyer should consider in their search.
STEP 1: MAKE SURE YOU’RE READY TO MAKE THE MOVE
• Do you have a stable job?
• Do you plan to live in the same location for at least the next 5-10 years?
• Are you prepared to accept the responsibilities of homeownership?
STEP 2: CREATE A WISH LIST OF WHAT'S IMPORTANT TO YOU
Location: Suburbs, city or county?
Size: How many bedrooms/bathrooms? A yard?
• School district
• Public transportation
• Commute distance/time
• Rental income opportunity
What are your ‘must have’s’ and what are you willing to look past for your perfect home? Use an online home searching tool like HomeScout to get a handle on values in your area and their potential. Get unfiltered, accurate, personalized & private access to 100% of homes available.
STEP 3: DETERMINE YOUR FINANCIAL STATUS
• Request your credit report from all three credit bureaus (Equifax, Experian and TransUnion). Correct any credit errors ASAP.
• Estimate your down payment. A 20% down payment is ideal to avoid paying private mortgage insurance.
• Calculate approximately 3-6 months worth of emergency funds for unexpected maintenance
STEP 4: COLLECT YOUR NECESSARY DOCUMENTS
• Gather proof of employment, including pay stubs and tax returns from past two years.
• Print bank and investment account statements from past 90 days.
• List your previous addresses of residence and current landlord’s contact information.
• Consider the 3 myths of traditional vs online mortgage lenders
STEP 5: RESEARCH LENDERS AND MORTGAGE OPTIONS
• Gather quotes from lenders, comparing rates, fees and terms.
• Get pre-qualified for a loan to show sellers you’re serious.
• Establish Purchase Power with a Pre-Approval. A Pre-approval is a game-changer. It shows sellers you mean business. You’ve done your research, you know your budget and you’re ready to plunk down some serious cash on a brand-new home.
