Purchasing a home is one of the most significant decisions many people will make in their lifetime. Here are some tips to help start in your home search:
- Know where you stand financially: Before purchasing a home, you need to make sure your source of income is stable and reliable, your credit needs to be in good standing, you must have a healthy debt-to-income ratio, and have enough money saved for a down payment and closing costs (closing costs are usually 2%-5% of the purchase price).
- Speak to a lender and a Real Estate professional: You need to know how much home you can afford before starting your search. A lender or a real estate professional can help you figure this out. When looking for a real estate agent, find someone specializing in the cities that interest you.
- Have an idea of what you want: Knowing how much you can afford, make a list of what you want from your new home. These can include the location, type of home, number of rooms, etc. It is also helpful to list nice-to-have items (including garages, pools, etc.)
- Research & look within your price range: Make sure you look online, drive by the neighborhoods, and research before committing to a home. It is also important to only look within your price range and what you are comfortable paying. Remember that there are additional costs involved with owning a home and that life happens. Don't max out your budget on a house payment if you put your future self in an uncomfortable position.
- Get preapproved by a lender: Sellers are not looking to waste any time in today's market. Having a preapproval letter while looking at homes puts you in a better position when making offers, so if you run into your dream home, you are ready to make an offer that same day.
- Don't mess with your credit: If you are serious about buying a home, do not make any big purchases like a car, furniture, etc., that might have a significant effect on your credit.
- Don't change jobs: Your approved loan amount is based on a couple of different factors, including the lender's prediction of your future income. Changing jobs can affect the amount of your approval. Keep your lender informed of any changes while house hunting, but you should not change jobs until after closing if you are already under contract on a property.
These are just some of the things to consider when buying a home. Our team focuses on Broward and Northern Miami Dade county, and specializing helps us focus on learning the areas. After all, we are not just your Realtors; we are your neighbors.
