House Buying Tips: Advice for Home Seekers

Deciding to buy a home can be one of the most thrilling moments in your life. Before diving in, it’s crucial to ask yourself a few questions and understand how to balance your desires and needs with your budget. We’ve created a comprehensive house hunting guide to help you find the right home at a price you can manage.

How To Begin House Hunting: 5 Essential Steps

Unsure where to start? We’ve outlined five steps to guide you through the house hunting process, ensuring you feel prepared and confident.

Step 1: Set Your Budget And Begin The Approval Process

Before starting your house hunt, determine how much you can afford. Use a budget calculator to estimate a comfortable mortgage payment. Remember, your mortgage isn’t the only expense; include:

• Property taxes
• Homeowners insurance
• Home maintenance
• HOA fees
• Utilities
• Unexpected expenses

Use a mortgage calculator to estimate monthly payments based on the home price, down payment, loan term, and interest rate. Get preapproval with a preapproval letter, which is more reliable than a prequalification letter.

• Prequalification letter: An estimate based on your stated income and credit score.
• Preapproval letter: An official document from a lender stating the loan amount you qualify for, based on verified documents.

Consider obtaining a Verified Approval Letter (VAL) to strengthen your offer by showing sellers your financial credentials have been thoroughly vetted.

Step 2: Make A List Of Must-Haves And Nice-To-Haves

Create a prioritized list of features for each room and the home overall. Categorize these features into:

• Must-Haves: Essential features you can’t live without.
• Nice-To-Haves: Desirable but non-essential features.
• Deal-Breakers: Features that will eliminate a home from consideration.

Step 3: Explore House Hunting Websites And Apps

Use online resources to understand your local housing market and find homes within your budget. Research neighborhoods for factors like schools, shopping, and crime rates. Note addresses of interest and contact your real estate agent.

Step 4: Engage With A Real Estate Agent Or REALTOR®

A knowledgeable real estate agent can simplify your search and help maximize your budget. REALTORS® adhere to a strict code of ethics and can provide valuable assistance. Choose an agent certified as an Accredited Buyer’s Representative® (ABR®) or Certified Buyer Representative (CBR).

Step 5: Visit Homes In Person

Attend open houses or schedule personal viewings. Test home features and note any needed repairs. Don’t forget to explore the neighborhood as well.

Foreclosures And Starter Homes

Foreclosures and short sales can be more affordable but require extra effort to find and may involve a longer process. Starter homes are budget-friendly options for first-time buyers, with the potential for future upgrades.

Stay Flexible

Be prepared to adjust your wants and needs if they don’t align with your budget. Creativity can help make a seemingly unsuitable home work for you.

Conclusion: House Shop With Confidence

Finding the perfect home takes time. Start with mortgage preapproval and budget setting, then explore the housing market. Prioritize your needs, visit properties, and remain flexible. With these steps, you’ll be ready to make a confident home purchase.