Buying a Home is One of the Biggest Investments You’ll Ever Make. It’s a Complex Process That Requires Careful Planning and Execution. To Help You Navigate the Process Successfully, We’ve Put Together 6 Practical Tips for Home Buyers.
1. Know and build your credit score. Be aware of and grow your credit score prior to starting your home search. Most lenders require a credit score of 620 or above to qualify for a mortgage. However, the higher your score the more likely you are to receive competitive rates on your loan.
2. Determine your budget. Before you start looking for a home, you need to determine how much you can afford. This will help you narrow down your search and ensure you’re not wasting time looking at homes that are out of your price range. Need help determining your budget? Try using the 28/36 rule to get an idea of how much you can afford. According to the rule, your potential mortgage payment shouldn’t exceed more than 28% of your gross monthly income or 36% of your total debt payments.
3. Get pre-approved for a mortgage. Once you’ve determined your budget, it’s important to get pre-approved for a mortgage. This will give you an idea of how much you can borrow and what your monthly payments will be. Having a pre-approval letter from a reputable lender lets the seller know you’re qualified to buy their home and puts you in a better position in a competitive market. Contact us if you need help selecting a lender.
4. Determine your deal breakers. Consider factors like location, bed/bath count and outdoor space. Having a list of deal breakers and items you’re willing to compromise on is important when considering potential homes. It will also save you from wasting time on properties that just aren’t right for you.
5. Get a home inspection. Before finalizing the sale, it’s essential to have a home inspection. A home inspection can uncover any potential problems with the home, such as mold, structural issues, or outdated electrical systems. This will help you negotiate repairs or seller credits, or it could be a deal-breaker if the issues are too significant. Home inspections also educate you on how to maintain your home and prepare you for any future projects or repairs as the new home owner.
6. Work with a reputable real estate agent. A good real estate agent can make all the difference when it comes to buying a home. Look for an agent who shares your values, is knowledgeable about the market and has a track record of success. A good agent can help you navigate the buying process, negotiate on your behalf, and ensure you’re making a sound investment.
Buying a home is a complex process, but with these practical tips, you’ll be well on your way to finding the perfect property. Remember to stay patient, ask questions and work with a team of professionals who have your best interests in mind.
Contact us to get your home buying process started today.
We are a Chicago, Milwaukee and Madison based real estate team backed by years of success in helping clients navigate the complexities of real estate. Our experience and expertise leads our clients to a smooth real estate transaction. From the south side of Chicago, to the north side of Milwaukee and Madison – and everywhere in-between – we’ve got you covered.
