09 February . 2024
Want to buy a home this year? Here are 4 things to do now.
While the housing market has been unpredictable over the last few years, 2024 seems likely to offer a ray of sunshine for would-be homebuyers. In the new year, mortgage rates have begun to decline and they are expected to continue falling. But lower rates usually means more competition for would-be homebuyers. So we’ve done the research to share 4 things you can do right now to get ready, including tips to help you stand out in a hot market.
1. Create a list of needs and wants
Whether you’re a first-time homebuyer or are looking to relocate, there are a wide variety of factors to consider when buying a new home. But before you even start looking, it’s important to identify what you need and want from your home—and to understand the difference between the two. This can help you eliminate homes that aren’t a good fit and act quickly when the right one comes along.
First, identify your needs. These are the things you can’t live without, like a room for the kids, a space for your dogs, or a main-floor bedroom for family members who have trouble navigating stairs. If you’re a single homebuyer, think about whether you'd be more comfortable in a condo or townhome, with neighbors close by.
Next up are your wants; these are the things that are negotiable to you. Where is your ideal location? How many flex rooms would you want for your hobbies? Answering these questions in advance can help save time and effort once you’re ready to start touring homes for sale.
2. Set a realistic budget
Becoming a homeowner is one of the biggest financial decisions you’ll make. And while you may be saving up for a down payment, there are other costs associated with homebuying, like closing costs, inspection fees, and more. Using an online calculator can be a great way to begin narrowing down a budget and help you visualize what your monthly payments might look like; on our website, you’ll find a monthly mortgage calculator on each home listing page.
However, online calculators can only get you so far. Nothing beats real-world experience, so talk to friends or family who own a home in your area and ask questions, from what their monthly bills are to whether they faced any unexpected expenses. (For instance, apartment dwellers might not consider that they’ll need to purchase lawn care items, like a mower and hedge clippers.)
3. Research homebuyer assistance programs
Awarded at the state, federal, and local levels, there are numerous assistance programs available in the US that are designed to help people purchase a home, including assistance with down payments, closing costs, and more. You may have heard of FHA, VA, or USDA loans, but there are also programs like Energy-Efficient Mortgage, which helps finance energy-efficient upgrades. And, most states have programs specifically for first-time homebuyers, so be sure to check out what’s available in your area.
4. Get preapproved
A mortgage preapproval is the process of working with a lender to determine how much money you will be eligible to borrow before you apply for a loan. This is beneficial for numerous reasons, including attaching real numbers to your dreams. Most preapprovals are good for 90 days, so best practice is to get preapproved just before you start to seriously house hunt.
Being pre-approved before you step into the market makes you a more knowledgeable shopper and more attractive to sellers, potentially putting you ahead of competing buyers who don’t have financing in place. Every advantage counts when you’re buying in a hot market!
Are you looking to buy a home in Oregon? Take a virtual tour, come by for a visit, or sneak a peek at what’s in store for the future.