Generally speaking, one year is a good time frame to set for yourself when it comes to purchasing a home. That way you have a good amount of time to save money and manage your finances and also build your credit score as much as possible so you can qualify for a lower interest rate and fees. Below we have highlighted the main areas you should be researching and focusing on if you plan to buy a home within the next year:
What can you afford?To start creating your home buying plan you will need to talk to a lender that can help you figure out why type of home loan is best for your needs and how much you can borrow for your mortgage and afford to pay back.
Every financial situation is different. Just because two people make the same amount of money does not mean they will qualify for the same amount of house because there are lots of other factors that come into play when lenders decide how much to let you borrow.
Right away your lender should be able to tell you how much house you can afford. Once you know your max purchase price is $400,000, you can then get an idea depending on the loan program your loan officer recommends of how much money you will be required to save and put down on the home. If you need a 100% financing loan program, this is a good time to let your lender know.
Preparing your finances: how much house can you afford?
What city, town, and neighborhood do you want to live in?This is sometimes the hardest part of the home buying process; choosing a home to live in. By getting a head start you'll quickly be able to determine if you'd rather live in a big city, or maybe a rural are, and whether you want the convenience of a close grocery store, school, or your employer. This is a good time to start putting together a list of must-have home qualities.
Don't get your heart set on just one area though because homes are on the market one day and sold the next so it's a possibility that you won't get the exact location that you want. However, with careful planning and timing you should be able find a home in an ideal location within a year.
Find a top-notch RealtorThe next step in the home buying process is to find an Agent to help you throughout the process. You might want to talk to a few different agents to see who is going to best fit your needs. If you're working with someone who is pushy or bad about getting back to you, move on and find another agent.
Find out more about RANLife Real Estate Agents.
Look for your dream homeThis is generally the longest part of the home buying process because let's be honest, we all want our dream home and to be 100% satisfied with it! Though your agent will help you in looking for homes, get a head start by searching online.
Once you've found a home let your agent know right away that you want to make an offer. Unless the home is bank-owned, generally the seller should get back to you within 48 to 72 hours with a response. Once the offer is accepted and you are under contract it's time to call your lender and get the deal done!
Continue reading about the home buying process here:
I'm under contract....Now what? Steps to ensure a successful loan closing.