For many, owning a home is the ultimate accomplishment. It's an exciting time for any person or family, as homeownership is a trusted way of building long-term wealth.
Getting a mortgage can be something else, though.
With your stress levels in mind, let's discuss a few things to know before buying a home. You got this!
Don't Sweat the Market
We get it — it's tough out there right now.
Housing inventory is low, prices are high, and you're running into bidding competition at every turn. That doesn't mean you can't secure the home of your dreams.
You absolutely can!
The housing market, like any market, has its peaks and valleys. Prices are high right now and it's entirely possible the value of your home dips in the months/years after purchase.
However, over time, real estate has proven to consistently appreciate in value. If you plan on being in your home years into the future, odds are you're going to recoup your original investment — along with equity you've built along the way.
Find Your Price Range
Once you've decided to pursue homeownership, one of the first things you'll need to determine is exactly how much you can afford.
Thankfully, that's never been easier.
Take the RedDoor app for example — you log in, answer a few questions, and you're presented with your Max Buying Power™ (MBP™).
With this information in hand, you can immediately narrow your search to homes that fit your situation precisely. You can even quickly add a co-borrower to find your combined MBP™!
Getting Pre-Approved is Easy
Sometimes, getting started is the hardest part.
That's why it's important to know one simple fact — getting pre-approved is not a difficult process.
In fact, with new technology like RedDoor, you can get pre-approved and begin generating pre-approval letters in a matter of minutes.
In a market that moves as quickly as this one, the speed in which you submit your offer might make all the difference. With your instant pre-approval letters in hand, putting in an offer on your dream home is as simple as a few clicks!
Less than 20% down is OK
A common misconception when buying a home is that you must have 20% for your down payment.
In reality, 20% down is nice to have but certainly not a requirement.
Don't let the down payment become a barrier to homeownership. There are loan programs available that offer the flexibility you need, you simply need to discuss with your loan officer and review options that work for you!
You Have Loan Options
Speaking of loan options — you have them!
There are a number of different loans available to homebuyers, each with its own unique set of details and features. To check out the six main options (FHA, Conventional, VA, USDA, Jumbo, & Non-QM), visit our blog!