Welcome back to Homebuying 101, the series where we walk you through the entire process of buying your first home. Many people start the home search process online, but to best set yourself up for success, you should interview and hire an agent and secure a preapproval for a loan first. That way, you're working with someone you trust and have realistic expectations for what you can and can't afford.
Securing both representation and financing are big milestones in the home search, so take a moment to pat yourself on the back. With those two key elements in place, it's time to finally start the home search.
1. Define Your Wants and Needs
Understanding your priorities is just as important as understanding your budget. Having a clear set of preferences such as location, size and amenities will help both you and your agent narrow down your options. You'll also want to consider factors like your career trajectory, family plans and overall lifestyle.
2. Research Neighborhoods
Explore different neighborhoods and choose a few that align best with your priorities. There is no one-size-fits-all area that is going to be best for everyone, so be specific and consider what areas have convenient access to the amenities you care about most. If you're unsure where to start, your real estate agent can offer expert regional guidance and access to exclusive listings.
3. Explore Listings Online
Utilize real estate websites and apps to explore listings in your desired areas. Filter your search based on your criteria such as price range, number of bedrooms and property features. Save your favorite listings and set up email alerts for new properties that match your preferences.
4. Schedule Viewings
Once you've identified promising properties, attend open houses and schedule viewings to get a firsthand look. Pay attention to details such as the condition of the home, layout and potential renovation needs.
5. Ask Questions
Don't hesitate to ask questions about the property's history, maintenance and any disclosures provided by the seller. Hire a professional home inspector to conduct a thorough inspection and identify any issues that may affect your decision.
6. Evaluate Your Financing Options
While your preapproval provides insight into your maximum loan amount, remember to consider all associated costs of homeownership. Factor in expenses such as property taxes, homeowners insurance, maintenance and utilities when evaluating affordability. Be sure to leave room in your budget for unexpected expenses and emergencies.
If all goes well and you've found the perfect home, it's time to make an offer — a topic we're going to cover in the next installment of Homebuying 101. If you're struggling to find your dream home, however, it's important to note that sometimes this search will take some time. Several factors contribute to the length of your home search including interest rates, housing prices and the amount of inventory.
If you're feeling stalled in your housing search, don't lose hope. People will always have reasons to move, and it's important to remain diligent and be prepared to jump when the timing is right. If you've done your research and secured financing, it will be easier to move and close on your new home quickly when the right one becomes available.
