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4 Best Tips for Buying a Home in 2021

Monday, August 16, 2021

The year 2021 has brought some changes to the real estate market. While many things have stayed the same, we're experiencing a massive boom in the industry. While this is good for the economy, it also means more competition with other buyers. 

However, that is just one small aspect you need to think about when buying a home. Whether you're a first-time homebuyer or you just need a refresher course, we can help. 

Keep reading for four tips on navigating the housing market in 2021.

1. Know Your Budget

First, it's absolutely essential to establish a budget when buying a home. Don't start house hunting until you know what you can afford. 

Start by evaluating your cash flow. Based on your monthly revenue and expenses (not counting your current rent or mortgage), how much can you afford to spend on monthly mortgage payments?

We recommend aiming low, rather than high to avoid putting you and your family under financial strain. Remember to leave some wiggle room in your budget for emergency repairs and other homeowner expenses. These include things like insurance, HOA fees, utilities, services, and property taxes. 

2. Get Preapproved 

Next, let's talk about mortgage qualification. When buying a home, it's always a good idea to get preapproved for a home loan. This will tell you exactly what you can get approved for in terms of loan amounts and interest rates. 

Seek preapproval letters from multiple lenders, as some offer better rates than others. Additionally, look into the various types of home loans available to you, such as:

  • Conventional 
  • FHA
  • VA
  • Fixed-rate
  • Adjustable-rate

If you have trouble qualifying for the loan of your choice, it might be necessary to spend a few months working on your credit score

3. Create a List of Priorities 

When looking for a house, it helps if you know exactly what you're looking for. Within your budgetary constraints, create a list of priorities that you and your family are looking for in the ideal home. 

For example, location is a major factor, especially if you have kids. The neighborhood in which you buy a home will determine which school district your kids will be a part of. It will also impact safety, security, commute times, and more. 

Additionally, think about other factors, like the number of rooms, property size, outdoor features, amenities, and more. 

4. Be Prepared for a Competitive Market

Finally, one of the most important housing market tips for 2021 is to ready yourself for a competitive buying environment. In most places, there are more buyers than sellers. This means two things:

  • You won't be the only one interested in the homes you tour
  • You might have to pay more to make your offer more attractive to the seller

When buying a home, most people try to come in with a low offer. That might not prove successful in the current real estate market. A seller will always take the higher offer. 

We recommend working with a professional realtor to help you navigate offers, negotiations, and bidding wars. 

 Planning on Buying a Home?

Buying a house is an exciting experience for anyone. Try not to let the competitive market soil your experience. Remain patient and avoid going over your budget. 

And if you need help finding insurance after buying a home, we can help. Click here to customize your policy to find the perfect insurance for your new home. And if you have any questions, contact us today to get in touch with one of our specialists. 

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