Are you gearing up to buy a home this year? There are a variety of necessary steps every buyer should take to ensure they are financially-ready to place an offer on a home. Here are some of those steps every buyer should take in 2021.
One could argue that this is one of the most important steps before searching for a home. In a competitive real estate market, you want to be ready to move forward with an offer immediately. Also, when you are preapproved you are more favorable to sellers because you have done your due-diligence and proven that you can afford the home. Do not wait to get pre-approved because you may miss out on opportunities.
Your credit score will affect your ability to qualify for a loan. In order to obtain the best rate possible you need to take the necessary steps to ensure your credit history is in order. Before applying for a home loan, you want to correct any issues on your credit report that are hurting your score. Today, it is quick and easy to obtain a free credit report online.
In addition to the down payment, there are a variety of other expenses you will have to budget for when purchasing a home. Some of which include property taxes, homeowners insurance, and repair costs. Today, it is very common for a buyer to put down less than 20% toward the down payment. However, keep in mind that if you do that you will need to budget for private mortgage insurance (PMI).