Purchasing Preparation: Everything You Need To Know Before Buying a Home

The home buying process can be overwhelming when it’s your first time on the market. If you’re ready to take the plunge, great preparation can help you find the perfect property. Here’s what you need to know before you begin browsing the real estate listings.

Set a Budget

When you’re looking to buy a home, the first step is to determine what you can comfortably afford. While guidelines vary, most lenders recommend a mortgage of no more than three to five times your annual household income. Get a few prequalification quotes, which indicate how much a specific bank would lend you based on your income and debt.

Do Your Research 

With your budget in mind, start looking at home listings in your target neighborhood. Get a sense of the types of properties you can afford and how fast they tend to sell. Make a list of your must-have, nice-to-have and deal-breaker features, which will inform your choices as you take steps to buying a house.

Get Preapproved

Once you’re prequalified and have a budget, you’re ready to start shopping in earnest. Preapproval is the next step in the process with your lender. You’ll provide proof of income and debts, such as tax returns and financial statements, which they will use to determine whether you can get a mortgage. They will also examine your credit history to make sure no red flags exist.

Find an Agent

A qualified realtor will guide you in every step of the process of how to buy a house. He or she will be knowledgeable about the specific market where you want to live and will help you negotiate a fair contract once your offer is accepted.

If you’re interested in condos for sale in the Los Angeles area, talk to our experienced team. We know the market inside and out and can help you find the right home in the right neighborhood at the right price.