Home-Buying Journey: 4 Steps to Take Before House Hunting

When you’re ready to begin your home-buying journey, it can be tempting to dive straight into online listings and schedule viewings. However, taking a few key steps before you start will help ensure a smooth process. Here are four essential home-buying journey tips to guide you along the way.

Check Your Credit Score

Before you start looking for homes, make sure your credit is in good standing. A low credit score can result in higher mortgage rates and larger monthly payments. Missing payments, maxing out credit cards, or errors on your credit report could prevent you from securing a loan. Start by checking your credit score at annualcreditreport.com—the only authorized site for free credit reports. This simple step is crucial to avoid surprises later on in your home-buying journey.

Get Pre-Approved for a Mortgage

Getting pre-approved for a mortgage is one of the most important steps in your home-buying journey. It provides clarity on your budget and makes you a competitive buyer, especially in a hot housing market. To get pre-approved, a loan officer will review your credit score, income, and assets. Be prepared to provide documents such as pay stubs, W-2 forms, and bank statements.

Create a Home Wishlist

Once you’ve been pre-approved, it’s time to think about what you want in your new home. Make a list of must-haves, such as the number of bedrooms, bathrooms, or a spacious yard, as well as other features like a finished basement or a walk-in closet. By creating a home wish list, you’ll narrow your options and make the home-buying journey more manageable. Use a home-buying checklist to stay focused and organized during your search.

Don’t Drain Your Bank Account

Even if you’ve saved up your down payment, don’t deplete your emergency fund in the process. Unexpected home repairs or maintenance costs can arise after you move in, so it’s important to have additional savings set aside. Aim to keep a few months’ worth of mortgage payments in reserve to cover surprises like a broken water heater or a leaky roof. Keeping your emergency fund intact ensures that you’ll be financially prepared for any challenges that may arise during your home-buying journey.

Contact one of our expert loan officers today to get personalized advice on how to start your home-buying journey. We’re here to support you every step of the way!