Based on recent figures from the real estate sector, an estimated 55 million families in America hope to purchase a home within the next five years. In truth, that number is probably far higher than reported. Many people are silently dreaming of becoming homeowners but don’t dare voice their ambitions aloud. If you’re among the millions of people planning to purchase a dream home soon, certain measures can make the process go more smoothly and help bring your dreams to life.
Contact a Real Estate Agent
One of the first steps to take before buying a home is to contact a realtor. Even those who aren’t ready to make a purchase right now can benefit from professional assistance. Real estate agents can help clients gain a better understanding of which homes are on the market. They can also use their expertise to advise clients on the right times to buy versus the best times to simply observe the real estate market.
Professionals can also assist you in determining what you really want and need in a home. This isn’t a decision to be taken lightly. Furthermore, many potential homeowners go into the buying process with unrealistic expectations. The chances are good you’ll be able to find a home with many of the features you’re looking for. Still, it may not be possible to get everything you want in a single locale.
Real estate agents can also help home shoppers decide whether buying an existing home or purchasing land and seeking a construction loan would be a better option. Those are only a few of the advantages real estate agents can bring to the table. Working with an agent from the very beginning is certainly advised.
Focus on Your Credit Score
Another measure that could bring that dream home within reach is paying attention to your credit score. Lenders tend to approve people with high credit scores for mortgage loans more readily than those with lower scores. Though having bad credit or no credit at all doesn’t automatically disqualify you for a home loan, it could lead to less favorable terms and far higher interest rates.
Know your borrowing power, and consider taking steps to improve your credit score if need be. That’ll make you a more attractive prospect in the eyes of lenders. It could also save you a great deal of money over the long term.
Start Saving Now
Saving as much money as possible before purchasing a home is also advised. That’ll give you a down payment to get the purchasing process started. Lenders typically require about ten percent of the price of a house as a down payment, but those figures can vary based on several factors.
According to recent reports, the average purchase price of homes in America is about $430,000. That means an average ten-percent down payment would be $43,000. Being able to pay more upfront will reduce the overall amount of the mortgage loan as well as the long-term interest you’ll end up paying. Saving money may seem impossible for some families. After taking a close look at their spending habits, though, most buyers find they have more extra money to save than they initially thought.
Securing Your Dream Home
Those are a few simple steps you can take to make buying your dream home a reality. Real estate agents can be exceptionally helpful throughout the process. Having a good credit score will improve your chances of being approved for a loan and give you more buying power. Additionally, saving as much money as possible before buying will provide a good head start.