When you’re ready to start looking for your next home, the process of house hunting can be daunting. This guide will help get you on the right path!
1. Determine how much you can spend
If you haven’t already, it’s time to figure out how much house you can afford. It may be the least fun part of house hunting, but it will determine every other step. If you’re confused on what exactly you can afford or what budget will work for you, it’s a good idea to meet with your bank or a financial professional. You’ll also want to base your budget on which loans you may qualify for, especially if you are a first time buyer. It’s also time to start boosting your down payment savings account and to stop running any credit checks!
2. Get pre-approved for a loan
Now that you’ve calculated what you can afford, it’s time to pre-apply for a mortgage loan. Your bank is a good place to start, but if you’re interested in more than conventional loans (such as FHA or non-profit assistance programs), make sure you are applying through the correct channels or through program-approved financial institutions.
3. Make a “must-have” list and a “want-to-have” list
Here’s where it starts to get fun! It’s time to decide what your new home must absolutely have and what you’d like for it to have. Must-haves may include things such as school district, number of bedrooms or bathrooms, or outside living area. These are typically things that are unchangeable or will take significant time or money to change. Want-to-haves could be things like carpeted bedrooms, stainless steel appliances, or a pool. Your wants are items that are not absolute dealbreakers. However, what may be a want-to-have for one may be a must-have for another. For instance, if you are a professional swimmer, a pool may be a must!
4. Decide what area to buy in
Now that you have your musts and wants, pick several areas (if possible) that you would like to move to. There may be one particular neighborhood you have your heart set on buying in, and that’s okay! Just be aware that your home search may take longer. Your loan may also require that you move to certain areas, which will narrow your window of available houses. If neither of these are a factor, do some research into multiple neighborhoods and areas. If you can, drive through them at different times of the day. One neighborhood may look scenic in the evening but can be loud with traffic noises during the day. Do some research into that area. What restaurants are nearby? Parks? Schools? Grocery stores? Is it walkable or will you need to drive a lot? Your lifestyle should play an important part into the neighborhood you choose.
5. Find a Realtor
Hiring a real estate agent or Realtor should definitely be part of your plan when you start house hunting. Having an experienced Realtor by your side can help ease the anxiety that comes along with purchasing a home. Your agent can also help with other aspects of the home buying process, including scheduling inspections for potential homes, advising you on home prices and neighborhoods, and doing the majority of the paperwork. You definitely want a Realtor with your best interests working with you to ensure the home buying process goes as smoothly as possible.
6. Start checking websites
Once you’ve decided on a price, area, and have a real estate agent, it’s time to start finding houses for sale! There are a multitude of websites for home buyers, but there are a couple things to keep in mind. Certain websites, such as Realtor.com, pull from the local MLS (Multiple Listing Service). Typically, only listings from licensed real estate agents will appear on these sites. Other third-party sites pull from a variety of listing services and are available for anyone to post on. This creates the potential to have listings that are fraudulent, outdated, or have incorrect information. When in doubt, ask your Realtor about any listings you find, and they can steer you in the right direction. Once you find a listing you love, contact your agent to schedule a showing, preferably as soon as possible. In many cases, you are not the only house hunter who loves a particular home, so it’s important to see it in person quickly before any other offers are accepted.
7. Visit open houses
Touring open houses is another great way to see certain houses, features, and neighborhoods in person. Many times homes don’t translate perfectly into photos or descriptions, so a tour can help solidify whether a property will work for you or not. It can also help familiarize you with a particular area or neighborhood.