Are you planning on buying a home this year? Before you begin the homebuying process, there are a few things you should be aware of. With this, here are a few important points that buyers need to know about buying a home in 2020.
Understand what credit score you need
When was the last time you checked your credit score? If you are planning on buying a house this year, now is the time to run a credit check to see where you stand. Most lenders consider good credit to be above 680.
How much of a downpayment do you need
This is one of the most frequently asked questions from homebuyers every single year. Today, many buyers still believe they must put down 20% down to purchase a home, which is not the case. According to the National Association of Realtors, the median down payment for first-time homebuyers in 2019 who financed a purchase was 6%. There are programs available today where people can put down as little as 3%. While this varies from one market to the next, be aware that it is absolutely possible to purchase real estate in 2020 for under 20% of the home price.
One of the best steps a home buyer can take starting out is to get preapproved for a mortgage. Unless you are a cash buyer, you will be putting yourself at a disadvantage if you do not get preapproved. This is because you will be seen as a less serious buyer than those individuals who already took the initiative to get approved for a loan.