So you’re thinking you want to buy a house in 2023?
One of the biggest advantages a homebuyer can have is to start preparing early. Sometimes, life throws us curveballs and we might have to buy a home ASAP, but other times people can take their time and prepare. Typically, the latter of the two is less stressful and allows you to go at your own pace! So without further ado, here are my top 4 suggested steps to take now to buy a home next spring!
Start to plan your overall timeline. Are you in a lease? Will you need to break the lease, or are you timing your move with the lapse of your current lease? Do you need to sell a house first? There is a lot to consider when buying a home! People often ask me how long the home buying process will take from start to finish, and while it depends on many factors, I can provide some suggestions. I usually suggest people start the process of looking for a Realtor about 6 months out from their ideal move date. At about 5-6 months out connect with lenders and get officially preapproved, and from there, your Realtor will be able to guide you through the rest. On average, a shorter closing period is 30 days, and in 2022 my clients have averaged 14 days of house shopping until they had their offer accepted (which is pretty speedy & doesn’t always work that well for everyone!). Hot tip: did you know your first mortgage payment is typically due at the start of the second month after closing? (i.e. if you closed on your home in March, your first payment would typically be on May 1st!) This is helpful to note if you are trying to time your final rent payment, etc.
Keep your finances in check. Continue to save what you can, keep paying off any outstanding debt, and don’t finance any new large items (i.e. a car) when you’re nearing the start of your home buying process. Also, create a budget to better understand what a comfortable monthly payment would look like.
Get in touch with a few Realtors. Who you choose to work with will set the tone for your whole experience so if you aren’t vibing with your aunt’s go-to Realtor recommendation, keep looking. Don’t settle just because you feel pressured to use someone! Talking with friends that have recently bought a home is a great way to find a good real estate agent. Initial meetings with agents will be SUPER helpful in learning the process. You’ll want to take note of which Realtor makes you feel the most comfortable and who acts more like a teacher vs a salesperson. Feel free to ask the Realtor any questions you might have, and expect them to ask you questions too!
Get preapproved! After you’ve connected with a Realtor you trust, they’ll have some great lender recommendations for you. I strongly suggest talking to the lender(s) your Realtor recommends, they’ll be local, reputable, and overall just really good at their job. You’ll want to meet with a lender to get a feel for what you’ll be able to afford, what loan type you’ll be using, etc. This is one of the *most* important steps! Meeting with a lender adds so much clarity to the financing part of your home buying process. Preapprovals are also typically good for 120 days, so I highly suggest getting preapproved early on in the process just in case there are any hiccups you weren’t expecting.
If you ever have any questions, I’m just an email away – cheers!