3 Things You Need to Do to Buy a House in 2019

Let’s get right to it - here are three things you have to get on sooner rather than later if you are hoping to buy a home in 2019. At the time of this recording, it is July 2019, we’ve got a little less than six months in the year and there is still plenty of time to purchase a home in 2019, so if that’s been on your radar, you’ll want to make sure you get these three things squared away soon to make sure that you are positioned properly to buy the home of your dreams this year.

Number 1: Meet with a mortgage lender or loan officer.

Meeting with a trusted lender is one of the first steps to purchasing a home and it’s a step many of our clients will do as far as 12 months in advance of purchasing a home. Why? A lender will look at your big financial picture, taking a look at your credit, your income debt and savings, and give you an idea of what price of home you can qualify for.

The lender will also be able to help you understand what to expect in terms of down payment requirements, what your projected monthly payment may be, and more.

Most importantly, a lender can help you prepare for your purchase by advising you on small changes you can make in order to be in the strongest position possible to buy. Often times, our buyers can make small changes to their current financial status that can improve their credit and earn them better interest rates or loan programs that can save them money.

Planning out these adjustments and changes to your finances now can make a huge difference in your qualification when you’re ready to buy.

Number 2: You need to meet with your real estate agent.

It’s never too early to engage with a real estate professional who can prepare you for what to expect in the purchase process. Purchasing a home is a real commitment, and a real estate agent can help guide you on the process, but more importantly, protect your interests in the transaction.

Don’t just rely on a listing agent to give you representation - think about it, a listing agent represents their seller’s interest, and their job is to sell the home as quickly, for the most money possible, for their seller. Don’t leave yourself vulnerable by entering into this transaction without someone in your corner, guarding your interests.

This also includes new construction - buyers agents like us who are familiar with the new construction purchase process are super helpful in making sure you get a great deal on a new home. Feel free to interview more than one agent - choose the one you know you’ll work best with and who you trust to protect you through the transaction.

Your agent can also refer you a trusted mortgage lender to begin that prequalification process - it’s important to work with a lender and real estate agent who can work well together, since those two parties work very closely together for dozens of hours during the home purchase process.

Your agent will also help guide you on finding the perfect neighborhood, and what to expect in timing. The real estate market is cyclical and different seasons through the year can affect market conditions - your agent should be able to help you prepare for purchasing a home with current and forecasted market conditions in mind.

Number 3: Start preparing your finances for your purchase.

Begin paying down any debt, and save money from every paycheck for your downpayment and closing costs on your home. Aim to have enough saved for your projected downpayment on the home, at least $1,000 for home inspections and appraisals, and up to 2% of your projected purchase price saved in closing costs.

For example, if you are planning on purchasing a $250,000 home, you’ll want at least $5,000 saved just to cover your closing costs. Don’t just take my word for it, though, be sure to consult with your mortgage lender and real estate agent to get a clear idea on exactly what you’ll need to be in your strongest position to buy. This will help ensure that you will be in a comfortable position to get the home you want.