5 Things to Do Before You Start Your Home Search
Purchasing a home is a major undertaking — both financially and emotionally — so it’s essential to get prepared before you dive into the homebuying process. Here are a few steps to take prior to starting your property search:
Establish a budget
The first step for any potential homebuyer is to establish a clear and realistic budget. Take a close look at your financial situation, including your income, expenses, and any existing debts. Factor in potential additional costs like property taxes, insurance, and maintenance. This will give you an idea of how much you can comfortably afford to spend on a home.
Save for your down payment
Saving for a down payment is one of the most significant financial requirements when buying a home. Aside from VA and USDA loans, all other loan options require a down payment. Typical down payments range from 3% (or 3.5% for FHA) to 20% of the home's purchase price, depending on the loan type. You should start early and set up a dedicated savings account to accumulate the necessary funds. A High Yield Saving’s Account is a great option and allows you to receive higher-than-average interest rates on deposits.
Work on your credit score
Your credit score plays a crucial role in determining the interest rate and terms of your mortgage. You can request a free credit report and should review it for any inaccuracies. Then talk with a lender to determine what the best steps are to improve your credit score. Avoid opening any new lines of credit and don’t make large credit card purchases if you aren’t paying down your credit card bill monthly.
Research your loan options
Understanding the different types of mortgages available will empower you to make informed decisions. Consider fixed-rate vs. adjustable-rate mortgages, and explore government-backed programs like FHA, VA or USDA loans if you qualify. Contact me for a list of trusted lenders you can contact and shop around for to find the best terms that suit your financial situation.
Attend one of my first time homebuyer classes or set an appointment to discuss what the process entails
Real estate transactions have their own set of jargon and complex laws and timelines. Having a basic understanding of a few things — including the inspection period, working with an escrow and title company, and additional costs that you’ll incur — makes everything much less complicated once you’re under contract on a home. Join my next first time homebuyer class. Click here to reach out and I’ll give you more information on that!
Ready to buy now? Let’s set up a call or in-person consultation.
Julia Van Valkenburg, Realtor
OMNI Homes International
julia@buyselltucsonhomes.com
