Buying a home is probably going to be one of the major financial decisions you’ll ever make in your life. It’s quite expensive.
According to the U.S. Census Bureau, the median sale price for a home sold in the U.S. was $323,100 in 2017. Therefore, you should take shopping for a house seriously. Here are some of the best tips on how to shop for a house.
1. Plan Ahead.
One of the best tips and tricks when it comes to how to shop for a house is to plan ahead. Before even thinking about shopping for a home or shopping for a mortgage loan, you should plan ahead. That includes figuring out where you would want to live, what kind of house you’d like to purchase, and in what neighborhood.
You’ll also need to ask yourself other questions, including:
- How much house can I afford?
- How much mortgage can I afford?
- 5 Signs Your’re Not Ready to Buy a House?
- How to Save for a Down Payment on a House Fast?
- LendingTree Review: Get a Loan in 10 Minutes.
A house is one of the most expensive assets you’re gonna have, so it makes sense to answers to these questions beforehand.
Do you have a good credit score? Another thing you have to make sure is correct is your credit score. A good credit score is a ticket to a loan offer and low interest rate. See, How To Raise Your Credit Score to 850, for more information.
So, make sure your credit report is clean. So if you don’t know what your score is, get a free credit score through CreditSesame. This is important because a low credit score could cost you a lot of money over the lifetime of a loan and could keep you from getting your dream home.
Once your credit report is free of errors and you have a good credit score, you can meet with a mortgage lender to get pre-approved for a loan.
Stop applying for other credits. Another tip is to refrain from applying for other credits, like applying for a credit card or applying for a car loan. That can, not only increase your debt to income ration, but it can also increase the number of inquiries, which can badly alter your credit score.
2. Shop for multiple mortgage lenders and obtain as many loans estimates as possible.
Before thinking of shopping for a house you also need to find a great mortgage lender to finance your home. To make sure you make the best decision, it’s it’s a good idea to shop around for the best mortgage that suits you and don’t rely on just one source because saving even half a percent on the interest rate can save you thousands of dollars over time.
There are several mortgage lenders out there, including Rocket Mortgage, but Lending Tree is a better choice, because you get to compare several loan offers and rates before you make a thoughtful decision.
Click here to compare mortgage rates through LendingTree. It’s completely FREE.
Consider the best mortgage loan companies and work with a lender who will explore several options with you.
Related: Apply for a Mortgage Loan Today
3. Learn the Housing Market.
There are good times to buy a home and there are bad times to buy a home. So study the housing trends before you start to shop for a house.
4. Apply for less you’re qualified for.
Just because you’re qualified to take a certain amount of loan, doesn’t mean you have to take it all. By taking less money offered to you, means that you have more money in your savings account for emergencies.
If you are interested in comparing the best mortgage rates through LendingTree click here. It’s completely free.
Work with the Right Financial Advisor
You can talk to a financial advisor who can review your finances and help you save 100k (whether you need it to pay off debt, to invest, to buy a house, or plan for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.