2020 has brought us many challenges and maybe disrupted some of the plans we had in motion. People looking to settle down and build a home are jangling with an idea to buy a house.
While some believe now is not the right time, others are convinced this is a great opportunity to strike an excellent business deal. However, whatever you decide, keep in mind that buying a new home requires a lot of time and effort.
Some real estate agencies say: we buy columbus homes fast and flip them over. But you need to understand that this is a lengthy process which can last up to a year.
However, are a couple of steps that can help you make the best possible decision!
Start your research on time
As soon as you can, start reading magazines, newspapers, and online sites that contain real estate listings. Focus on the properties you are interested in and see how long they stay on the market. Also, make sure to remember fluctuations in asking price.
In this case, you can identify some of the housing trends in a specific area.
Figure out how much money you can spend
Lenders usually advise future homeowners that look for homes that don’t cost more than five-time their annual income. In this case, calculate a down payment, at least 20%, to have a moderate amount of debt.
While each case is different, you should make this decision based on your financial situation. If you have a financial advisor, talk to him about possible solutions before making a final decision. Also, start saving on time so you can afford a down payment.
Get prequalified for a mortgage
Before you even start looking for a property, you need to know how much money you will be able to afford. The easiest way to do this is to get prequalified for a mortgage. You’ll need to submit financial information, such as income, amount of savings, and investments you have to your lender.
The lender will review everything and tell you how much money they can lend you. In this case, you’ll know the price range of properties you should be looking at. Along the way, you can get preapproved for a mortgage, which involves providing additional paperwork.
Hire a real estate agent
While some people tend to avoid realtor’s service, due to a hefty commission, others wouldn’t make any financial transactions without their help. If you ask us, it’s better to hire a real estate agent who has access to helpful information and is familiar with the buying process.
The agent also knows what type of properties fit your budget and can help you find home quicker, without wasting months. However, it’s crucial to find a person who will understand your needs and with whom you can have a friendly relationship.
And, the best of all, you get to hire him for free, since he’s compensated from the commission paid by seller.