3 Things to do When Thinking About Buying a Home

If you’re considering buying a home, here are three essential steps to take before diving into the process:

1. Build Up Your Savings

• Many first-time homebuyers underestimate how much they’ll need in savings. Beyond the down payment, which typically ranges from 0% to 20%, it’s wise to set aside an emergency fund for unexpected life events.
• Also, ensure you have extra funds for homeownership expenses like maintenance and tools, such as lawnmowers, garden hoses or leaf blowers.

2. Improve Your Credit Score

• Check your credit report for accuracy and ensure everything is up to date.
• To boost your score, try these tips:
  • Pay off high-balance credit cards.
  • Keep your credit utilization below 20%.
  • Avoid closing old accounts, as this can negatively impact your score.

Remember, any negative marks on your credit report will automatically drop off after seven years.

3. Get Pre-Approved for a Mortgage

• Getting pre-approved is crucial before browsing homes or talking to real estate agents. This step ensures you know exactly how much you can afford and prevents disappointment if you fall in love with a home outside your budget.
• Find a lender you trust—experienced and relationship-focused—so they can guide you through every step of the process.
• Pre-approval helps you understand your borrowing capacity and gives you confidence while house hunting. It also ensures you can make informed offers when you find the right home.