Have you vowed to buy a home this year? It’s time to get moving! Even if you’re months away from hiring an agent and touring homes, there are some steps you can take now to make that dream happen. Here, Realtor.com offers some preparatory actions that will help ensure a seamless transaction, both financially and mentally.
Automate your down-payment savings
You can never start saving too early if you’re trying to squirrel away the recommended 20-percent down payment. One way to begin is by automating your checking account to regularly set aside a small amount of your paycheck into a separate savings account for your house fund.
Build your credit history and keep it clean
Mortgage lenders will want to see evidence that you’ve paid off past debts, so keeping on top of your credit cards and car and college loans is a crucial mortgage must-do.
However, don’t completely steer clear of credit. If you’ve never had a credit card or a bank loan, you won’t have a credit history. Once you have credit established, keep it pristine and pay all of your bills on time.
Practice living on a budget
Create a budget that factors in the cost of owning a home so you can get used to living on less disposable income. Downsizing your budget early also means you’ll be able to save more for your down payment, pay down debt or save for furniture for your new home.
Practice your handiness
Anyone thinking about buying a home should learn the basics of property maintenance. Knowing how to repair basic home issues — such as electrical shorts, and drywall and plumbing issues — could save thousands of dollars in the future.
Prepare to pounce
Spend time getting to know the real estate market before you’re ready to buy. This means browsing homes online to get a sense of what is available in your price range, as well as and the neighborhoods and amenities you can actually afford. This can help avoid disappointment when it comes time to really begin looking.