Frequently Asked Real Estate Questions-Ep. 24

What are the top 5 things I can do to get prepared for purchasing a new home?

Navigating the housing market can be more complex than ever before. Most potential buyers are overwhelmed and don’t know where to begin. Here are the top 5 tips I recommend.

1. Understand and know what your FICO score is. Your score plays a major role in what type of mortgage you can get, how much you have to put down and what your interest rate will be. Meet with a mortgage professional to get pre-approved and find out what your score is and get it updated if need be.

2. Know what you can afford. Again, meet with that mortgage professional and find out what amount you are able to get preapproved for and more importantly what you can afford.

3. Start saving. You will need to save up for your down payment, closing costs and moving expenses. It is also best to have around six months worth of mortgage payments in a savings account for emergencies or unexpected expenses.

4. Understand the real estate market. You can save yourself money by watching the seasonal trends and being financially prepared to make an offer when the time is right.

5. Consult a Real Estate Professional. Get a referral from a friend, co-worker or neighbor for a real estate agent they had success working with. Take the time to meet with that agent to ensure they are the right agent for you. (Refer to my blog post from May 23, 2012 'How do I find an agent to help me buy or sell?' For more ideas on finding an agent). Or, of course contact me, I would be happy to discuss all of this and more, and any other questions you may have about the homebuying process!