Successful Home Buying: Financing Your Home
For many home buyers, shopping for a new home can be a complicated process, but it doesn’t have to be. In fact, by taking the right steps from the start, your home buying experience can be a simple and enjoyable one.
Are you ready to find your perfect home? Don’t hunker down for that HGTV marathon just yet. You’ll first need to need to figure out what you want, what you can afford and where you want to live. Here are three simple steps for successfully financing your home.
Step 1: Determine Your Home Buying Goals
Before you get started on your home buying journey, you need to decide where you’re headed. Asking yourself important questions will help you determine your home buying goals. Having a clear idea of what you want up front will make the process easier and you’ll be much happier in your next home.
Here are some questions to get your wheels turning as you shop for your perfect place:
- Why are you buying?
- Do you need more space?
- Would you like a bigger yard?
- Will you downsize or stay in the same size home?
- What school district do you want to live in?
- Do you want your home to be move-in ready, or would you prefer a fixer upper?
Step 2: Decide How Much You Can Afford
Now that you have a clear idea of the type of home you want to buy, it’s time to get a good understanding of your finances. Talking to a lender and getting pre-approved for a loan is critical in today’s tight lending market.
This process is no different for first-time buyers than it is for existing homeowners. No matter your experience level, it’s a smart idea to start the process as soon as possible. Having a pre-approval letter will help you determine how much you can spend and will help strengthen your offer when the time comes.
If you need help locating a reputable lender in the Minneapolis area, MPLS LIST has you covered. Learn more about our financing services.
You’ll also need to get your financial house in order. Lenders will look closely at your financial history and habits – their goal is to ensure your ability to maintain mortgage payments without financial hardship. Take a look at what the Consumer Financial Protection Bureau (CFPB) recommends you should gather before applying for a mortgage
Step 3: Conduct a Neighborhood & Home Search
Finding your perfect home begins with locating your dream neighborhood. After all, if you’re miserable with the area you live in, it’ll be hard to stay in love with your new home for long.
Kick off your neighborhood search by making a list of must-haves. Here are some characteristics to consider:
- Commuting – How long will it take for you to get to work during rush hour? How accessible are the freeways? Can you take public transportation? What about walking or riding your bike instead?
- Convenience – How close is the nearest shopping center? How far will you have to walk or drive to run simple errands?
- Culture – What are the neighbors like? Is there an active nightlife here? Is the area pet-friendly?
- Recreation – What kinds of parks, walkways and bikeways are nearby? Are there local museums within walking distance?
With your dream neighborhood in mind, you can begin your home search. This will give you an idea of what sellers are asking for and what’s available in your price range.
You can get started by doing an online search or by using our innovative tools. You can search specifically for Lofts, Condos or Single-Family Homes for sale. Or if there’s a building you’d love to live in, you can check available sale listings with our Building Directory.
Now It’s Your Turn
Have you recently begun your home buying journey? What have you discovered about your perfect home and dream neighborhood? Share your findings with us in the comments!