5 Pro Tips for Buying a Home This Year

Are you interested in purchasing a home this year, but unsure of the best way to go about it? Do you have an idea of what you’re looking for, but are unsure of the price tag attached to it? If so, then you need to learn all you can about buying a home in today’s market.

The market today is crazier than ever before. Many houses are sold within the same day they’re listed, and that doesn’t seem to be slowing down anytime soon.

See below for an in-depth guide with tips from professionals on how to buy a home this year.

1. Consider Selling to a Cash Buyer

There are many people out there that are selling their homes to try and take advantage of the crazy real estate market. But there are a few reasons why that might not be in your best interest.

First, you will need to find a new home to live in after selling your current one. That may prove to be difficult with a market this hot, as houses are flying off the shelves before you can schedule a tour. Not to mention that putting pressure on yourself to find a new home quickly can lead to you making a bad decision.

Second, if you sell your home the traditional way (through an agent), then you’ll spend a good amount of money on things like repairs, renovations, and so forth. Not to mention that the agent will take a significant portion of your total sale.

Fortunately, there’s a better way. You can use a cash home buyer such as URB Chicago to sell your home as-is.

Simply reach out on their website and tell them a bit about your house. They’ll do some research and schedule a time to talk with you about your goals for the sale. Once the research is complete, they’ll make you a cash offer, allowing you to avoid making any repairs.

2. Set a Budget

It can be hard to feel in control when you’re a buyer in the 2021 real estate market. Not only are homes selling faster than they’re being listed, but that demand is causing homes to sell for astronomical prices.

For that reason, one of your biggest cautions should be purchasing a home for more than it’s currently worth.

This can be avoided rather easily by establishing a budget for your house-buying mission. Once you figure out the right price of a home, you’ll have an extra layer of accountability during your search. If the home is above your budgeted price, it’s off your list.

Take some time to perform some research. How many rooms are you looking for? How much square footage is ideal for your situation? What are houses with those qualifications currently going for?

You might also learn a bit more about the average asking price for your ideal house in a specific area. For example, if you’re looking for a house with 3 beds and 2 baths in Lombard, knowing the average asking price ahead of time can help you determine whether or not it’s a good fit.

3. Start Saving Now

For many interested home buyers, your top concern might be finding a mortgage. You’re worried that your lack of credit history (or poor credit history) could be your undoing.

Well here’s something to consider: the more money that you have saved up for a house, the more likely a lender is to approve your application.

There are many things you should be prepared to pay for when you buy a home. that includes around 20-percent down for a home, application fees, closing costs, agent fees, homeowner’s insurance, receiving a credit report, appraising your property, and so forth.

It might be a while before you find a house that you’re interested in. Why not use that time to save more money? Better yet, if you know you’re still a few months (or even a year) from starting your search, use that to aggressively save towards the costs of buying a house.

4. Get Pre-Approved

This goes along with the concept of setting a budget for yourself. What’s the point in searching for home listings with rose-colored glasses if you’re going to be brought back down to earth at some point?

In other words, you’ll want to know what’s realistic for you before you start your search. Believe us, it will help you avoid a lot of wasted time and frustration.

Make sure to get pre-approved for a mortgage before your search. That way, you’ll know exactly how much house you can pay for. This may also give you more leverage in negotiations, or at least help you avoid being haggled for more money; the seller either meets your ceiling or you walk away.

5. Know Your Debt-to-Income Ratio

Many people view looking at their credit score or debt-to-income ratio the same way they’d view looking at a squashed spider. They don’t want to, but they have to.

Your debt-to-income ratio is what lenders use to determine whether you qualify for their loan. It’s important to know whether you meet their standards or not.

If not, then you might want to take a few months to aggressively lower that debt before you invest in a house anyways. Homeownership ain’t cheap!

Use These Tips for Buying a Home This Year

Now that you have seen an in-depth guide with several tips you can use for buying a home this year, be sure to use this information to your advantage.

Take the time to browse our website for more articles on house buying, as well as several other topics that you will enjoy.

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