9-month Plan to Buy a Home This Year

Does buying a house seem like a pipe dream? It can be easier than you think as long as you have a plan in place.

By breaking down your journey into manageable steps, you can avoid feeling overwhelmed. Whether you’re a first-time homebuyer or someone looking to upgrade, here’s a comprehensive nine-month plan to guide you through the process of buying a home this year.

Month 1: Assess Your Financial Situation

Before you start browsing homes, it’s essential to get a clear picture of your current financial situation. This will lay the foundation for the rest of your home-buying journey.

Begin with these steps:

• Pull your credit score: Your credit score influences what interest rate, terms, and even loan types you’ll be eligible for. Obtain a free credit report and look at it carefully. Are there any errors or accounts you don’t recognize? If so, dispute and fix inaccuracies . And if your score is lower than you’d like, work on improving it by paying down debt.
• Calculate your budget: Look at your income, expenses, and current debt obligations to determine what you can afford. Use online mortgage calculators to estimate your monthly payments based on various home prices and interest rates.
• Save for a down payment: The more you can put down upfront, the better. Start setting aside money for your down payment, closing costs, and other fees associated with buying a home. Figure out where you can cut corners and set up a savings account to help funnel away money weekly or monthly on a consistent basis.

Month 2: Research the Market and Your Desired Location

While you’re getting your financials in order, you can start researching the real estate market and the areas you would like to live. Location plays a significant role in your home purchase — and it’s crucial to find a neighborhood that fits your needs.

• Identify your must-haves and decide what is non-negotiable. Consider factors like proximity to work, school districts, public transportation, safety, and community amenities. Make a list of your priorities — for example, the number of bedrooms, a backyard, garage, short walk to town, etc.
• Investigate the housing market in your desired area. Are home prices rising or falling? What’s the inventory like — are homes selling quickly or is there room for negotiation?
• Visit potential neighborhoods. Spend time driving around the areas you’re interested in. Walk through local parks, check out schools, and visit nearby shops to get a feel for the community.

Month 3: Get Pre-Approved for a Mortgage

Once you’ve got your financials sorted and a general idea of what you’re looking for, it’s time to meet with lenders and get pre-approved for a mortgage. This step will give you a clear picture of how much you can borrow, which will help you stay within budget when shopping for a home.

• Shop around for a lender: Contact multiple lenders to compare rates, loan terms, fees, and even personalities. Don’t just go with the first lender you speak to. Buying a home is a complicated process, and you want someone you trust and are comfortable with.
• Get pre-approved: Submit your financial documents (income, tax returns, debt, assets, etc.) to your lender. A pre-approval letter will show sellers that you’re a serious buyer with financing lined up.
• Review mortgage options: Many mortgage options are out there, and you want to choose the one that’s best for your needs. Do some research and discuss each with your lender. They can explain the differences between a fixed-rate mortgage and an adjustable-rate mortgage (ARM), along with all of the different loan types, like Conventional, FHA, and VA loans.

Month 4: Start Looking at Homes

Now comes the fun part — touring homes. Walking through a house and picturing yourself there will give you a good sense of what’s important to you and what fits your needs. You’ll also see what’s available in your price range.

Steps to start your search:

• Work with a real estate agent: A knowledgeable agent will help you navigate the market and find properties that match your criteria. They’ll also handle negotiations, paperwork, and other logistics.
• Visit multiple homes: Don’t settle for the first property you see. Visit a variety of homes in different neighborhoods to compare prices, features, and conditions.
• Attend open houses: Open houses give you a chance to explore properties without an appointment. They also allow you to ask questions directly to the seller’s agent and sometimes the seller.

Month 5: Narrow Down Your Choices

After several home tours, you should have a better idea of what you like (and don’t). It’s time to focus on homes that meet your criteria.

• Make a pros and cons list, noting the positives and negatives for each home. Factor in the condition of the home, the asking price, and how well it aligns with your long-term goals.
• Bring a trusted family member or friend to visit homes with you and give a second opinion. Their perspective, especially if they’re already a homeowner, can be helpful in making a final decision.
• Revisit your top choice or choices. Walk through the homes a second time and look at everything more carefully. Consider driving by the home at different times of day to see things, like if there are kids out playing and how busy the traffic is.

Month 6: Make an Offer and Negotiate

Once you’ve identified the home you want to buy, it’s time to make an offer. This is where your real estate agent’s expertise is important. They’ll help you craft an offer that makes sense with your budget and will be attractive to the seller at the same time.

Be prepared for counteroffers and negotiations. You may need to adjust your offer or come to a compromise on things like closing costs, repairs, or the closing date.

Month 7: Schedule a Home Inspection

Once your offer is accepted, it’s time to schedule a home inspection. This will assess the home’s condition and alert you to any potential problems or hidden issues with the property. Make sure to hire a qualified inspector. Your agent can recommend one. You can meet the inspector at the home and walk through with them, which allows you to ask questions.

Discuss the inspection report with your REALTOR^®. If the inspection reveals issues, you may want to ask the seller to fix them or lower the price. If there are major issues with the property and you want to back out of the deal, now is the time to do it.

Month 8: Finalize Your Financing

When your offer is officially accepted, it’s time to finalize your mortgage and prepare for the closing. Your lender will help you get together all of the necessary documents.

Month 9: Closing

You’re almost there. Before closing, do a final walk-through to ensure the property is in the agreed-upon condition.

 On closing day, you’ll sign a lot of documents and pay your closing costs, including any fees for the lender, title, or escrow services. Once that’s finished and the funds are transferred — you’ll be a homeowner!

Buying a home is an exciting journey, but it requires careful planning and preparation. Whether you’re a first-time buyer or a seasoned investor, taking your time to research, plan, and execute your strategy will help you score a home you love at the right price.