When it comes to real estate transactions, most of the focus goes to the selling side. In other words, sellers or agents are always looking to be the best at what they do; however, there is certainly merit to becoming a better homebuyer and even becoming the “best”. From getting your finances prepped to be ready to close on your home at the drop of a hat, there are several things you can do to be a better homebuyer.
Here are our 5 New Year resolutions to be the best home buyer in 2021.
1. Be Ready for a Downpayment
When potential buyers start looking at homes, oftentimes they haven’t adequately saved for their downpayment and closing costs. One of the top things you can do this New Year to be a better homebuyer is to either have your downpayment savings secured or start saving for a home purchase at a later date.
Saving for a downpayment doesn’t necessarily require that you use your life savings to do so. Instead, make cuts where you can with your disposable income and start putting that money away in a bank account earmarked specifically for your downpayment. If you earn bonuses or a financial windfall while you’re saving, consider putting all or most of that money towards your downpayment fund.
2. Get Your Finances in Order
Another big hiccup for new homebuyers is failing to get their finances in order before starting the buying or lending process. Your finances are the backbone of your ability to borrow and take out a mortgage, so make it a focus in 2021 to tie up any loose ends.
Pay down unnecessary credit card balances, close any bank accounts that are underfunded or no longer used, track your spending, and take a look at your budget for the year. All of these things can help streamline your finances when it comes time to borrow and will simplify the process.
3. Apply for a Mortgage and get Pre-Qualified
Once your finances are in shape, it’s time to move on to the most important part of your homebuying venture: paying for it.
Start by applying for a mortgage with Tidewater Mortgage Services, Inc. They have an online application and can get you prequalified in 24-48 hours. Working with a lender like Tidewater Mortgage will ensure that you know exactly how much home you can afford, what kind of interest rates you can expect, and what your payments will look like. Take care of this bit of business before you even start looking for homes.
4. Talk to Real Estate Agents
New home buyers or experienced homebuyers looking to step up their buying game in 2021 should consider enlisting the help of a real estate agent early in the process. Not only do local agents know the market in your area, but they can be huge assets when it comes to negotiating the best price and helping with the thing you need to move and get on your feet.
5. Start Shopping
Perhaps you’ve already had your eye on some homes, but we recommend that you start your shopping in earnest as the last thing you do when it comes to the homebuying process. The main reason being, if you’ve already been pre-qualified for a line of credit and have an agent to represent you, then you know what you can afford and what’s in your price range.
Starting your home shopping journey at this point ensures that you won’t be caught with any surprises on the financial side or be in any way shocked at the math not working out in your favor. Taking some simple steps to start will ensure that you’re the best buyer you can be in 2021!