Share:

This article has been reviewed and updated on 1/15/2021.

If buying a home in 2021 is at the top of your to-do list, now is the perfect time to gear up for the process. In the wake of the pandemic, the real estate market has become high demand as families move out of cities into suburbs or realize they need a bigger home. Whether you are looking tbuy a home as soon as possible or later this year, you can save plenty of time and frustration by preparing now to bring the best offer to the table. 

How to Prepare to Buy a Home in 2018

1. Strengthen Your Credit Score

Your credit score has the most significant effect on your new house payment. The higher your score, the greater your chance of snagging a reasonable interest rate. If your credit could use some improvement, start working on it now. Pay off old debts, pay down credit card balances, and dispute incorrect items. Also, don't open any new lines of credit. Additional accounts can significantly affect your score and potentially cost you that dream home.

2. Bulk up Your Savings

Many buyers underestimate the amount of money required to close on a home. That's why it is so important to have a reserve fund to cover unforeseen expenses. With the real estate market so competitive at present, you might also have to sweeten the deal a little more than you anticipated to outbid other potential buyers. Since May, many brokerage firms have seen more than half of their agents' offers end up in a bidding war. With that in mind, try to curb impulse shopping and dedicate as much money as possible to your savings leading up to buying a home.

3. Get Preapproved

buy a home

Nothing is more heartbreaking than finding the home of your dreams and realizing you can't afford it, and more often than not, with the competitive market, you'll need to come in with a strong offer. To prevent this issue, visit a lender, and get approved. That way, you will know up front just how much you can afford to spend. Also, by visiting a lender early, you can learn other ways to strengthen your financial position and land your dream home. Getting pre-approved can additionally make your offer more appealing to sellers, as it presents an easier path to closing. 

4. Research Neighborhoods

Don't wait until you attend your first open house to start looking for a new neighborhood. Research the area and drive through it to get a feel for what you like. Is your ideal community close to shopping centers and public transportation? Does it have quality schools? These are all factors that will narrow down your choices when you buy a home. Weigh them now, so you don't waste time looking at homes that lack essential criteria. 

By getting a feel of the market in the area, as well, you can position yourself effectively against other buyers. Sometimes the difference between a home with ten offers and one with two can be a matter of a few blocks' distance. As long as these properties still hit your criteria overall, they may be the way to go with a tighter budget.

5. Find a Real Estate Agent

The complexities of real estate can be overwhelming, especially if you are a first-time buyer. Build a relationship with an agent to help you along the journey towards homeownership. These professionals are invaluable when it comes to locating properties, offering advice, and negotiating with sellers.

 

Taking a few simple steps now will help you jump into 2021 ready to buy a home you and your family will enjoy for years to come. If you are in Red Wing, MN, looking for a trusted agent to help you on your search, look no further than Lawrence Realty, Inc. This team of top-notch agents has over 68 years of experience to help you navigate the buying process. Call them at (651) 388-4745 and start browsing current listings on their website.

tracking