3 Top Real Estate Tips for Buying a House
Since the beginning of the pandemic in 2020, the average price of newly listed homes on the market has increased by 32.6%. Now more than ever, it is important for prospective home buyers to start planning ahead.
With the real estate market constantly changing, there are things you can accomplish until you find your dream home.
What are some of the best real estate tips to follow? Keep reading to learn three of them.
1. Start Saving Early
One of the best real estate tips for those looking to buy a home is to start saving early. Once you know you’re in the market to buy a home, you can prepare your finances accordingly.
There are three main costs to consider:
- Down payment
- Closing costs
- Move-in expenses
The down payment required will depend on the lender you choose and the type of mortgage. Some conventional loans call for as little as 3% down if you have excellent credit.
Even with a small down payment, saving can be difficult. You can use a down payment calculator to figure out how much you need to save in advance.
Closing costs refer to the fees and other expenses you have to pay to finalize a mortgage. These costs can range from 2% to 5% of the entire loan amount.
The seller might be willing to pay for a portion of your closing costs such as the home inspection fee.
Move-in expenses will depend on your specific situation. You might need extra money to hire a moving company, purchase moving supplies, or for immediate home repairs.
2. Figure out How Much You Can Afford
Another one of the best tips for real estate purchases is figuring out how much you can afford. You can use an affordability calculator to set a price range based on your income, debt, down payment, location, and credit score.
Before shopping around, you might want to strengthen your credit to receive the best chances of qualifying for a mortgage. Your credit will also affect the interest rate that a lender will offer.
This is what you can do to boost your credit when buying a house:
- Pay all bills on time
- Keep credit card balances low
- Keep current credit cards open
- Track your credit score
You should know your credit before buying a home so opting for a free copy of your credit report is beneficial. If you notice any errors that are hurting your score, dispute them.
Following real estate predictions can help you find a home in your budget for the best price.
3. Explore Mortgage Options
Knowing how to buy a house involves getting a mortgage loan. To receive the best rate possible, you’ll want to explore the different options. The main categories of loans are:
- Conventional mortgages
- FHA loans
- USDA loans
- VA loans
If you are a first-time homebuyer, you’ll have more options through an assistance program. Once you research the different methods of buying a mortgage, you can compare rates and fees.
Real Estate Tips to Follow Right Now
There are a lot of real estate tips out there for those looking to buy a house. If you want to get started today, you need to have these three tips down or in the works.
Start by saving money for expected costs so that you can figure out how much you can afford. Don’t choose the first lender you find, explore the different options out there to get the best rates for your situation.
Check out the listings on our website to find your dream home now.