Purchasing a home is a big step in anyone’s life. And when buying a home, especially a dream home you plan to live in for a long time, there are many things you’ll want to consider, both when evaluating a property and evaluating the finances going into it. Here are some tips to help you find the home you’ve always wanted (and help you afford it). 

1. Find out your credit score

Houses (especially dream ones) are expensive. If you’re buying a new home, you’re going to need a home loan. And your credit score is a large determining factor in what kind of terms you’ll be able to get from your loan. Better scores can net you better interest rates, which can save you tens of thousands of dollars in the long run. Even if buying a home is something you’re only considering “down the road,” the sooner you find out whether your score is good or bad, the more time you’ll have to make it better before that all-important decision is made. 

2. Comparison shop

Just like almost anything else you buy, when looking for a home loan, it’s worth doing your due diligence and shopping around to find the best deal. Different lenders offer different rates and that means some are going to cost you more than others. 

3. Get yourself pre-approved

Once your credit is in a good place and you’ve found the right lender, look into getting a pre-approval letter. Being pre-approved by a lender lets home sellers know you can pay when you say you want to buy a house. This puts you in a better position than other buyers when competing for the same home. 

4. Know your budget

A home should not be an impulse purchase, nor should it break the bank. Even when buying a dream home, setting limits and sticking to them will ensure you get a house that’s right for you while keeping you in a stable financial position. And remember a house is more than just its purchase price. Insurance, taxes, maintenance, not to mention closing costs: There are lots of expenses your budget will have to account for. Some websites have helpful calculators to give you a better idea of what your expenses will look like so you can be better informed when making a purchase.

5. Know what you’re looking for (now and in the future)

Not all homes are built the same. List out the things your are looking for out of a home. Maybe you need additional bedrooms for the kids (or kids to come). Maybe you’re looking for homes in a specific area. Maybe you just have to have that pool. Knowing these things upfront can save you a lot of time and effort when looking through listings. But also consider what can and can’t be changed. An office could be remade into a second bedroom. A pool can be installed later. But location and space don’t change. These should be your highest priorities.

6. Find a skilled and trusted realtor

Home buyers might be hesitant to use a realtor thinking it will drive up costs, but a realtor takes their cut from the home seller, not the buyer. And their services can prove invaluable. A skilled realtor can look at your list of wants and needs, then help you find places that match as close as possible. And because they deal with these same issues every day, they can help you navigate any potential challenges. While you could go to a realtor before these other steps, having this information on hand will allow them to perform their jobs more efficiently. 

7. Trust your senses

When looking at potential places, it’s important to pay attention to what all your senses are telling you, not just your eyes. Listen for potential noisy neighbors or leaky pipes. Odd smells could mean mold or mildew is present. And if you feel a little off balance, it could be because of foundational problems. Don’t be afraid to ask questions.

8. But also consult the experts

A smell or a feel may tip you off to a larger problem, but an inspector can make sure you are getting exactly what you pay for. There are lots of different types of home inspections, and many are worth the money for either identifying potential issues or giving you peace of mind there aren’t any.

9. Be ready for setbacks

The home buying process is not an instant one. Inspectors can find issues that may require repair before you sign on the dotted line. Some documents may not be filled out properly. Or another buyer may sneak in and snag your dream house before you can make an offer. These things happen to even the most seasoned home buyers, and it’s important to not let them get you down. 

10. You don’t have to buy a house

If you’ve made it through this list, chances are you’re pretty serious about being a homeowner, but that doesn’t mean you have to force yourself into a bad deal just because you want a home. Home buying, like life, is often about timing. Perhaps the home of your dreams, one that has everything you want at a price you can afford) is just not available at the moment. New listings go up all the time, and you’d be wise to be patient until you find what’s exactly right for you.

And a bonus tip for if and when you do purchase a home…

Homeowners insurance can keep you and your new purchase protected. If you’re looking for the right amount of insurance for you, Freeway Car Insurance can help.