House Hunting Tips On How To Find A House To Buy

Buying a house can be one of the most exciting times of your life. Before you decide to move forward on a home purchase, though, it’s important to ask yourself a few questions and explore how to balance your wants and needs with your budget.

We’ve put together a complete house hunting guide to help you find the home that’s right for you at a price you can afford.

How To Find A House To Buy: 5 Steps To Follow

Taking some important steps will help you embark on the house hunting journey as well as feel prepared and confident once you find a house to buy.

Step 1: Determine Your Budget And Start The Approval Process

Before you begin house hunting, figure out how much home you can afford. Use a budget calculator to estimate the mortgage payment that works for your financial situation. Keep in mind that your mortgage payment isn’t the only cost you’ll incur each month as a homeowner. Be sure to factor these expenses into your budget, too:

• Property taxes
• Homeowners insurance
• Home maintenance and upkeep
• Homeowners association (HOA) fees
• Utilities (gas, electric, water)
• Unexpected expenses (medical emergencies and unforeseen home repairs)

Use a mortgage calculator to estimate your monthly payments based on factors such as the home price, down payment, loan repayment term and mortgage interest rate. Be sure to get a mortgage preapproval with a preapproval letter, which is different from a prequalification letter. Here’s a breakdown of the two:

• Prequalification letter: When a lender says you’re prequalified for a certain amount, they’re giving you a rough estimate of what you can afford based on a verbal confirmation of your income and any outstanding debts.
• Preapproval letter: A preapproval letter from a mortgage lender states the mortgage loan amount that you’re likely to qualify for. Since the amount is calculated from financial documentation, and not just self-reported numbers, it carries more weight than a prequalification letter.

Many real estate agents won’t work with buyers until they secure a mortgage preapproval – even if they’re prequalified.

If you want to increase your chances of making a successful offer, consider getting a Verified Approval Letter (VAL)¹ from Rocket Mortgage^®. A VAL can make your offer stand out in a competitive market because it shows sellers that your financial profile – including your assets, credit score and income – has been thoroughly vetted by our Home Loan Experts. In other words, Verified Approval shows that you’re qualified and ready to buy.