Buying a house in 2021 - Step One

Are you on the hunt for a new house? This one-minute blog post will get you on the right track.

The first step in buying a house in 2021 is getting pre-approval. Read: even if you are buying in cash, you still need proof of funds from the bank - this is your form of pre-approval.

Why is this the first step?

First, you need to know how much you can borrow. Knowing how much you can borrow tells you what price range you can look in without the fear of falling in love with a house that is outside your budget. There is no need for unnecessary heartbreak right now, this market is brutal enough.

Second, you will want a rough estimate of your monthly payment, before you decide how much you actually want to spend. Just because you're approved does not always mean you should spend it. I'm just speaking from experience over here... You also need to know how much you'll need to put down at closing. There are a lot of factors that determine your monthly and down payments that I do not have time to go through them all here, but keep an eye out for that post coming soon!

Lastly, when you have verifiable pre-approval, meaning you've sent all the documents to the lender for review and they'll verify your financials to the sellers, you automatically become a serious buyer in the eyes of a real estate agent like myself as well as the sellers of any home you decide to tour or make an offer.

Do I need to be pre-approved to tour a home?

You might be wondering, "Do I need pre-approval to just tour a home?" technically no, you don't. But you will be hard-pressed in this market to meet an agent with any sense that will take you on tours without knowing you're ready to go. And in the luxury markets, some sellers and their agents do require them before they will approve a showing. I promise that you will be glad you got that pre-approval before you start the actual shopping process. It will go much smoother for you without a doubt.

First step: Get Pre-Approved.

Need a lender? leave a message on the contact page in the message section.

Wondering what the next steps are? Click here for step 2

#Realestate #howtobuyahouse #stepone