How to buy a house in 2024

2023 was a roller coaster for real estate, but it’s time to get back to basics and buy smart in 2024. After the market correction, the frenzy slowed down, and now, with inflation lower but prices and mortgage rates still high, it’s crucial to navigate the buying process wisely. Here’s your step-by-step guide to making a smart home purchase this year.

Step 1: Know Your Why

Before you dive in, ask yourself why you want to buy a house. Whether it’s for stability, investment, or to stop throwing money away on rent, be clear on your goals. If you’re not sure, you might end up regretting it. Define your personal and financial goals, and make a list of what’s important to you in a home. Consider the financial implications carefully.

Step 2: Check Your Credit Score

Your credit score is your golden ticket to good mortgage terms. The better your score, the better the rates you’ll get. Get your credit report for free from the three major agencies and fix any errors you find. Remember, a higher score means lower monthly payments.

Step 3: Save for a Down Payment

Aim for a 20% down payment to avoid private mortgage insurance (PMI). If that’s not possible, explore options like FHA, VA, or USDA loans that require lower down payments. Do your homework and know exactly how much you need to save. Start early and be diligent.

Step 4: Create a Housing Budget

Don’t just look at the sticker price. Factor in property taxes, insurance, HOA fees, and maintenance costs. Know what you can afford long-term, not just what you can get approved for. Budget for ongoing expenses and set aside a buffer for unexpected costs.

Step 5: Shop for a Mortgage

Get preapproved for a mortgage to know your budget and show sellers you’re serious. Shop around with multiple lenders to find the best rates and terms. Don’t stick with the first offer you get—compare and negotiate.

Step 6: Hire a Real Estate Agent

An experienced agent is your best ally. They know the market, can help you find the right home, and negotiate the best deal. Interview several agents, check their track record, and ensure they understand your needs.

Step 7: Go House-Hunting

Visit homes in person, not just online. Get a feel for the neighborhood and amenities. Be clear with your agent about your must-haves and nice-to-haves. Stay flexible and open-minded, but don’t compromise on your top priorities.

Step 8: Make an Offer

Work with your agent to craft a compelling offer. Include your preapproval letter and proof of funds for the down payment. Be prepared for counteroffers and negotiate wisely. Once accepted, you’ll sign a purchase agreement and pay an earnest money deposit.

Step 9: Get a Home Inspection

A home inspection is a must. It reveals the property’s condition and any potential issues. Choose a reputable inspector and be present during the inspection. Use the findings to negotiate repairs or credits with the seller.

Step 10: Negotiate Repairs and Credits

If the inspection uncovers problems, negotiate with the seller for repairs or credits. Some issues might be deal-breakers, so take this step seriously. Your agent will handle the negotiations, but be clear about your non-negotiables.

Step 11: Secure Your Financing

Stay on top of your finances during the underwriting process. Don’t make any major financial changes before closing. Respond promptly to lender requests and keep your documents organized.

Step 12: Do a Final Walk-Through

Inspect the property one last time before closing. Ensure all agreed-upon repairs are completed and the home is in the condition you expect. Address any issues immediately through your agent.

Step 13: Close on Your House

Review the closing disclosure carefully and compare it to your loan estimate. On closing day, sign the paperwork, pay your closing costs, and get your keys. Congratulations, you’re now a homeowner!

Additional Considerations

• Timing the Market: Your personal financial readiness is more important than market timing. If you’re financially stable and ready to buy, now is a good time.
• Local Market Conditions: Real estate is local. Understand your market’s quirks and work with a knowledgeable agent.
• Extra Costs: Be prepared for closing costs, property taxes, insurance, and maintenance. Budget for these expenses from the start.

Follow these steps, stay disciplined, and you’ll make a smart home purchase in 2024. Remember, buying a home is a big decision, but with the right preparation and mindset, you can do it wisely. Now go out there and find your dream home!