Buying a house in 2021? 6 steps to follow

If you’re a first-time home buyer, buying a home is probably the biggest purchase you’ve ever made. Buying a home can be overwhelming and stressful, and that’s when you normally try to buy a home. Choosing to buy a home in today’s climate, amid the coronavirus pandemic, can add even more uncertainty and stress.

Surprisingly, the real estate market hasn’t slowed much, despite quarantines and social distancing. In fact, house prices are rising, driven by supply and demand. According to the Federal Reserve, the average selling price of a home in the third quarter of 2020 was $ 324,900. At the same time last year, the average selling price was $ 318,400. Low mortgage rates have drawn potential buyers into the market, increasing demand – and this trend could continue in 2021, as cases of the coronavirus continue.

Buyers who want to take advantage of low mortgage rates can always visit Credible to compare rates and mortgage lenders instantly (plus it’s free!).

6 tips for buying a home during COVID-19

One way to help reduce stress while looking for a home is to understand the home buying process. The pandemic may have changed some aspects of the home buying process, and we’ll help you navigate some potential changes you may encounter along the buying journey in 2021. Here are six tips for home buyers. ” a first house (and beyond):

1. Figure out how much house you can afford
2. Compare mortgage rates and lenders and get pre-approved
3. Be flexible when shopping for the perfect home
4. Don’t skimp on the inspection
5. Keep up to date with deadlines
6. Wait until you close your house for expensive purchases

1. Find out how much house you can afford

Your first step should be to figure out how much you can or want to spend on your home. This initial number will likely be an estimate. Your lender will tell you the mortgage amount for which you qualify. Take a look at your current mortgage or rent and consider how a higher monthly mortgage payment might affect your budget.

When considering your budget, don’t forget to think about home insurance, private mortgage insurance, utilities, maintenance, and property tax. Additionally, you may need to make additional purchases like garden equipment if you don’t currently have one. When considering your budget, you should use an online mortgage calculator to determine your potential monthly mortgage payments.

Before making any major financial decisions, calculate the numbers using Credible. Just enter simple information into their free online tools to compare rates and lenders and see how much home you can afford in the current real estate market.

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Now is also the time to figure out how much money can be put into a down payment.

2. Compare mortgage rates and lenders and get pre-approved

When you’re ready to start looking at homes and pricing homes, think about several mortgage lenders. Use a site like Credible to compare lenders and mortgage rates. Comparing the rates of various lenders allows you to make the most informed choice and find the best deal.

Once you’ve chosen a lender, ask for a pre-approval letter. This letter will help you define your real estate offers before those who bid without prior approval. Your lender may approve more money for you than you expected, and it may be tempting to exceed your initial budget. Know your limit ahead of time to avoid buying a home you can’t afford.

Your mortgage broker will look at your credit score, your credit history, and your income to determine how much to borrow.

3. Be flexible when shopping for the perfect home

Before you visit the homes, sit down and make a list of the things you need in your new home and the things you would like to have. In many parts of the country, the housing market is extremely competitive. So, prioritize the things you can’t (or can’t easily change) like location and number of bedrooms.

Thanks to the coronavirus pandemic, in-person visits are more difficult to find. Fortunately, buyers can view the homes virtually. Between video tours, video calls, and photos, virtual tours are almost as good as being on site. If possible, you can even drive through the neighborhood to get a feel for the area.

Once you find the home you want to buy, your real estate agent can submit an offer to the seller. Your form will include the price you are bidding on the property, the proposed closing date, and any contingencies that must arise before the transaction is finalized.

If you are looking to get a mortgage and want to complete the process online, Credible can help. With Credible, you can submit documents and get in touch with an experienced loan officer without leaving the comfort of your home.

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4. Don’t skimp on the inspection

Before your lender approves your loan, they’ll ask for a home inspection. Upon inspection, you will discover the flaws in the property. The inspector will look for critical issues including water damage, structural issues, damaged electrical systems, plumbing issues, roofing issues, and pest issues. You will receive a document detailing anything broken or unsafe. The inspector focuses on safety issues and not on aesthetics.

If possible, attend the inspection so that you can ask questions. Once the inspection is complete, you can add conditions to your offer. For example, you can ask the seller to fix a leaking roof or replace a broken water heater.

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5. Keep up to date with deadlines

Deadlines are essential when buying a home. Deadlines help move the sales process forward. Handing over all of your documents is especially important when it comes to applying for a mortgage. Any delay on your part could make the sales process longer or worse.

Obtaining a pre-approval letter from your lender is an important first step towards meeting a deadline. While you may need to submit additional documents, you can save time if the lender already has a lot of your information on file.

Before applying, visit an online mortgage broker like Credible to get personalized rates and pre-approval letters without affecting their credit score.

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6. Wait until you close your house to make expensive purchases

Buying a home is exciting. It’s fun to choose new furniture and paint. You might want to load up a new patio set or a new bedroom set, but don’t. Avoid making large purchases and don’t charge anything on your credit cards after you submit your loan application. Any financial change could delay or void your loan approval. Even if pre-approval indicates that a lender is willing to let you borrow money for your mortgage, they may change their mind. Wait until you have the keys to your new home before you go shopping.

Again, if you’re looking to make a big home purchase and want to take advantage of today’s historically low mortgage rates (rates may not stay low in 2021, so act fast), then head to Credible. Credible can help you find a low interest rate and streamline your home buying process. Start today.

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