Buying a home in 2025? Here’s what you can do now
As hard as it is to believe, we are fast approaching 2025! If you’re dreaming of adding homeownership to your agenda for the new year, you have lots to look forward to. You might be a first-time buyer, or a repeat homeowner looking to upsize. In any case, careful preparation will help make your journey smoother. There are several steps that are important as you get ready to buy a home in 2025. From knowing your budget to working with the right professionals, here’s what you need to know.
Determine your budget
Before you go house hunting and fall in love with your dream home, it’s important to take the time to decide on your budget first. Otherwise, you might set your sights on a home you cannot afford. This can result in disappointment, or financial trouble if you try to stretch your finances too thin so you can complete the purchase. Your budget will depend on your income, savings, debts, assets, and credit. You also need to consider the size of your down payment! Smaller down payments can help you secure a home faster, but they also come with bigger mortgages and the extra cost of mortgage default insurance. Conversely, a larger down payment helps you avoid higher fees in the long run, but it takes much longer to save. There are several moving parts involved in your budget, and it can definitely be tricky to pinpoint the right number. You can use online affordability calculators to help guide you, and make sure you utilize professional guidance and secure a mortgage pre-qualification.
Get a mortgage pre-qualification
Your mortgage pre-qualification lets you see what you might be able to afford in a mortgage, based on your current finances and current market conditions. A mortgage broker will evaluate your circumstances and provide an estimate on the mortgage amount you may qualify for in similar conditions. Of course, this is not a guarantee of future financing! However, it gives you an important look at where you stand in the market, and what you might be able to purchase. This can help you set realistic expectations for yourself, which is especially helpful if you are a first-time buyer. Knowing what you can afford will serve as a helpful guide in the market. A pre-qualification can also simplify the approval process later, since your broker will already have a lot of your information on hand.
Hunt for the perfect real estate agent
Your real estate agent plays one of the most important roles during this experience. You will spend much of your time with them, and it’s important to trust them fully. With that in mind, you should take the time to lock down your perfect real estate agent match! Look for someone who has experience working with buyers in your position, whether you are a first-time or repeat buyer. They should also be familiar with the area you are looking in, and where to find the right property for your budget. Ask friends or family members you trust if they have any recommendations, and do your own research as well. Before committing to an agent, it’s also a good idea to look at any reviews they have, and meet with them to ask a few questions about their style. This will help you get a feel for whether or not they will be a good match!
Think about your housing requirements
Finally, you need to think about what you require in a home in 2025. Naturally, there will be lots of things you are looking for, but it’s important to separate the needs from the wants. This will help you narrow down your options without ruling out too many properties that would still be a good fit. For example, you can be picky about things like location, number of bedrooms, access to amenities, and other things you truly need. However, try not to be too specific about your nice-to-haves such as a finished basement or inground pool. You can customize your home to your liking once you are the owner, but the most important thing right now is ensuring the main features of the house suit you!
Buying a home in 2025 will be an exciting experience, and you will have an even more successful journey if you start preparing ahead of time. By taking the time to nail down the basics and learning a bit about the process, you will feel more confident about entering the market once we reach the new year. Of course, you should also get in touch with your mortgage broker! We can work with you from start to finish to ensure your home buying process is a smooth one, and that you secure the mortgage product you deserve.
If you have any questions about your mortgage, get in touch with me!