Are you preparing to buy your first home this year? The process of buying a home is both an exciting yet daunting task. There are many steps a home buyer should take to have the best chance for successfully buying a home. Keep reading and discover a few important steps first-time homebuyers should take in 2020.
Save a Down Payment Save for Closing Costs
Many real estate and financial experts believe that it is in your best interest to make a 20% downpayment when purchasing real estate. Yet, there are plenty of buyers today who put down far less when they purchase a home. There is not necessarily a right or wrong answer when it comes to how much homebuyers should be putting down on a home. However, you want to be sure that you have enough saved for not only your downpayment but your closing costs as well. This is where many buyers go wrong. They think they have their finances in order but don’t factor in closing costs into their projections.
Set a budget
Be sure that you set a budget when you begin your home buying search. This is an important step for several reasons. Most notably, it prevents you from buying a home you cannot afford. Also, it helps expedite the home buying process by eliminating home listings that are out of your price range.
Get Preapproved for a Loan
One of the best ways to gain a competitive advantage from the competition is to get preapproved for a loan. When you get preapproved, you gain a competitive advantage because you become more favorable to sellers. You will be seen as a more serious buyer if you get preapproved for a mortgage.