While buying a home at this exact moment might not be possible due to movement restrictions or financial uncertainty, it’s never too early to start planning so that you’re ready when the time is right.
Here are some steps you can take now:
Know your price range
Before you start searching, it’s important to understand just how much home you can afford. The realtor.com® Affordability Calculator can help you pinpoint your price range.
Determine your wants vs needs
Start searching homes on realtor.com® to get a sense of what’s available in your price range and start weighing the things you want vs the things you have to have. To get a better understanding of your buying power check out the realtor.com® Price Perfectsm tool.
Save for a down payment and closing costs
If you can, continue to save money for a down payment. Down payment amounts can vary from 5% - 20% of a home’s purchase price, though there are loans, such as FHA and VA loans, where this amount can be lower.
Mind your credit
In order to qualify for a mortgage and get a better rate, you’ll need to have credit in good standing. Check your credit score, and if it needs improving, work on lowering your debt and avoid taking out other loans. Learn more about your credit score and ways to improve it.
Get pre-approved
If you think you’ll be ready to buy within the next 90 days, you should talk to a lender about mortgage pre-approval. Otherwise, you can still get all the necessary documents such a tax returns, W2s, pay stubs and bank statements, on hand so you can get pre-approved once you are ready.