You won’t be able to buy a home until you know what you can afford based on your personal finances. Be sure to keep track of your credit score and try to improve it as much as you can.
The better your score is, the easier it will be for you to get approved for a loan. You should also determine how much you have saved up for a down payment. Generally, homebuyers are expected to put up between 5 and 20 percent of the price of a property as a down payment.
FAQ Group: Buyer's Information
Research the local market
Long before you actually put an offer on a home, you should be monitoring the condition of the market in the area where you will be buying. Pay special attention to the length of time that most homes in your price range stay on the market and if there are any big shifts in the asking price.
Partnering with any local realtor can help you understand these key data points.
Go through the pre-approval process
You might be able to guess what your house budget is based on your finances and credit score, but speaking with a lender will help you determine a specific number. In order to get pre-approved for a mortgage, you will have to provide your lender with some financial information, including your debts and assets.
List your priorities
Once you know how much house you can actually afford, you can actually begin your search for a home among listings in your area of choice. Although you probably won’t be able to find a listing that fulfills every item on your wish list, like that indoor pool. It’s a good idea to keep your priorities top of mind to ensure you know what to look for when buying a house. So write them down, and make sure to revisit them as you begin looking at homes. More on that later.