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Tips for Buying a Home in 2021

By Aahoo Pourang : Buying and selling your home can already be stressful, but add a pandemic and viewing homes in a digital era where social distancing is required for safety, well it becomes a lot more complicated than previous years. With uncertainty looming over the housing market, it’s best to keep these tips in mind when buying a home.

1. Choose the right home

Unfortunately with the real estate inventory on an all-time low and prices that are continuously increasing, certain homes that were once on a wish list may no longer be available or far out of your budget. The most important aspect of buying a home is looking beyond a wish list and focusing on crime rates, commute, and the neighborhood. What differentiates a good agent from an agent that cares about your needs, is giving you a heads up on those exact focuses. You don’t want to waste your time on a home you’re interested in because of its features if the crime rate in the neighborhood is through the roof.

2. Organize your finances

One of the key factors that determines what your interest rate will look like and your qualifications for a mortgage is your credit score. When qualifying for a loan, lenders tend to look at your debt-to-income ratio (DTI), and it’s usually best to be below 43%. Other numbers to remember: to qualify for a conventional loan, make sure your credit score is above 620, and to qualify for a mortgage from the FHA, you’ll need a minimum credit score of 500. Before applying for your mortgage, pay down as much as your debt as possible.

3. Decide on your loan options

When buying a home, you have several different mortgages to choose from aside from FHA and conventional loans. VA loans are used for military service members, veterans, and spouses that do not require a down payment. USDA loans are for low-income homebuyers buying a property in a rural area. Check with your mortgage lender for possible loan programs that best fit your needs.

4. Determine your budget

It may sound easy, but setting a realistic budget to purchase a home actually takes much thought, time, and analyzing. Not only do you have to calculate your annual salary, but you have to also take a look at your projected salary and expected down payment to determine what you can afford. There are many options online, and all it really takes is a simple google search on how to retrieve a solid estimate of a home price that fits well within your budget.

5. Hire a real estate agent and mortgage lender that appeals to your needs

When looking for a real estate officer, always make sure they provide you with enough research on prospective neighborhoods and the surrounding area, while also looking out for your safety in this era of uncertainty. Loan officers should always make sure you score your best mortgage rate which saves you thousands throughout your loan period. What’s great about Better Loans and Better Loans and Homes Realty is that you get two in one: a veteran Real Estate Broker and a licensed loan officer that knows your very needs when it comes to your mortgage.

Resources: Lending Tree website