With competitive markets across the country along with uncertain financial times and elevated inflation, it can be easy to be overwhelmed over the prospect of buying a home. That being said, if’s simpler than you think. I’ve broken it down into 5 items that once you’ve completed, you should be in a great spot to find your next home. 

1. Build Credit. This is as simple as getting a credit card, using it, and paying it off in FULL before your statement closing period. That last part is crucial, as many people fail to pay off the debts and they compound massively, putting people into large credit card debt. It’s a slippery slope to fall into, so make sure you’re very careful, and make sure you always have the money to pay for the item before putting it on a card. You could pay for it out of pocket, but you elect to use a credit card in order to build credit. You may also elect to do this for credit card perks, as many credit cards offer benefits, air miles, or points with a dollar value that you can use to save money in other areas. Make sure you do your research before applying for a credit card. 

2. Grow your savings. I will admit, this one is tough, especially in recent financial times and with the strains of family responsibilities. With that said, I always found that if the money comes out of my paycheck first (direct deposit) into a savings account, I generally forget about it and don’t go looking for it, which leads to it sitting in a savings account and slowly growing over time. Nowadays, you can also get a high yield savings account, some of which can get you a annual return of 5% or more (again do your research on it), Either way, at the end of the day you need savings, not only for a down payment on a home, but also as reserves in your bank account incase anything goes wrong. 

3. Get pre-approved. Once you’ve built some credit and have a bit of savings, this is a good time to talk to a mortgage broker or loan officer, and find out what you qualify for before you start looking for a home. They will collect a lot of financial information from you and thoroughly underwrite this to get you a pre-approval letter. You’ll need that letter to develop your budget when house shopping, and also while submitting offers, and some may ask for it. 

4. Build a buy box. Simply speaking, put together a list of your must haves. Things like location, size, amenities, schools, etc. You may also consider the things you don’t want or don’t care for. Get very specific about these things, and you won’t waste time looking at houses that don’t meet your needs. 

5. Talk to a market expert. Let’s face it, everyone and their mother is a real estate agent nowadays. It’s not enough to work with somebody solely because they hold the license. You should figure out which market you want to buy in (buy box) and talk to a market expert. 

An expert should be able to tell you everything about a market, things like what kind of projects and developments are going on, job growth and population movement. Market experts don’t have to be agents, some of the best experts are the people that live and work in those communities. People that work with the public day in day out, like police officers, firefighters, paramedics, public works employees, and business owners can tell you a lot about the neighborhood. That being said, you will likely need to work with an agent, and you want to make sure they are trusted, knowledgeable, and resourceful.