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If you’ve decided to purchase a home, you may feel overwhelmed with all the moving parts of the real estate market. However, going into the world of real estate with the goal of purchasing a home becomes much smoother when you build a plan first.

Identify your home needs

A recent study has found around 70 percent of new homebuyers experience feeling some sort of buyer's remorse. One of the top reasons for this regret is the location of the property.

Before purchasing a home, think about the sort of area you’d like to live in. If you’re aiming for a quiet neighborhood, buying a home near popular bars and restaurants may not be for the best as these areas are high traffic and noisy.

Another top reason for buyers remorse is the amount of space in the home. This is why it’s crucial to not only consider the number of bedrooms needed for each individual in your household, but also the amount of storage space you’ll need.

Pre-qualify for a home loan

Over 60 percent of homeowners purchased their property with a mortgage loan. By pre-qualifying for a mortgage loan, you get a good estimate of the budget you have to work with to purchase a home.

A pre-qualification letter also signals to homebuyers your seriousness and capability to purchase their property, which can put you ahead of the competition.

Pump up your savings for a down payment

In addition to outside financing, it’s highly beneficial to have savings set aside for a home down payment. In fact, many mortgage lenders take into consideration the amount you’ve saved up when deciding to lend you money. So, the more saved up the better.

To grow your finances more quickly, consider housing your money in a certified deposit, often known as a CD account. This account provides a payable fixed interest rate. This is a great way to earn extra cash without the volatility you may find in the stock market.

By taking time to focus on building your finances and identifying your home needs, you can start your home buying journey off right.

Tag: Buyer Tips