3 Must-Do's Before Buying a Home

If buying a home is on your list of goals for 2022, then you need to start doing your homework. You need to be prepared for both the purchase and the ongoing expenses of a home. The outcome of an audit will tell you whether you're ready to take this big step, or if you need a little more time to prepare. Generally, to qualify for a home loan, you'll need good credit, a history of paying your bills on time, and a maximum debt-to-income ratio of 43%. 

1. SAVE

You’ll want at least three to six months of living expenses set aside after you factor out your down-payment. There will be considerable upfront costs including the down payment and closing costs. You need money put away not only for those costs but also for your emergency fund. Lenders will require it.

Even with a high credit-score, it is in your best interest to lower your expenses and save for your down-payment. Big spending right before buying a home can damage your chances of getting approved for a mortgage loan. Plus, keep in mind that even if you have a healthy budget for your down-payment, buying a home elicits much more spending post closing. Start saving now for lawn care, interior upgrades, furniture, plumbing, unexpected expenses etc.

2. SHOP AROUND

Before hiring a professional agent to help you with your home search, you’ll want to have an idea of what you want in your home. You have a number of options when purchasing a residential property: a traditional single-family home, a duplex, a townhouse, a condo, a co-operative, or a multi-family building with two to four units. Each option has its pros and cons, depending on your homeownership goals, so you need to decide which type of property will help you reach those goals.  Make a list of must-haves and deal-breakers, and also research the areas you are interested in. Location can be just as, if not, more important than the home itself. This will help when selecting your realtor because you’ll be able to narrow your search to an agent who is an expert in your desired area. 

You also need to shop around for mortgages and mortgage loans. You want to get the very best offer possible for mortgage rates and terms. Most financial experts predict real estate interest rates to increase, which means it is in your best interest to start shopping for options now. In a highly competitive market, buyers may need to show a bank pre-approval to tour homes. It’s smart to use your time now to price-compare rates and figure out what terms work best for you. Once you’ve found a lender, send in the paperwork needed to get pre-approved.

3. CHOOSE AN AGENT

Last but not least, you need a trained and licensed real estate professional to assist you with your home-buying process. Who you work with is super important when buying a home which is why, Bob Lucido Team and Lucido Global, make it our mission to deliver the Ultimate Real Estate Experience™ by providing incredible value and exceptional service. You need a team you can trust. When you buy or sell with us you don’t get just one agent, you get an entire team of real estate professionals working to serve and guide you through every step of the process.

If you’re looking to buy a home this year, contact us today for a free confidential consultation!

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