Is homeownership on your horizon this year? Prepare now for your upcoming purchase.
2025 is full of promise. And many people are ready to make this the year they become a homeowner.
While potential homebuyers are smart to monitor evolving factors like interest rates and home prices, they can also get a leg up on the process and be ready to enter the market when the time is right for them.
If you’re ready to buy a home in 2025, consider following these five steps to get started:
1. Organize your finances
Purchasing a home is likely the largest transaction you’ll make in your lifetime. Before doing so, you’ll need enough money saved up for the down payment and closing costs associated with the sale. It’s also wise to have savings set aside for ongoing home maintenance and repair, as well as an emergency fund for unexpected expenses.
Take a look at your credit score, too. Lenders will take it into consideration when determining your borrowing potential after you’ve applied for a mortgage. Different loan options require different minimum credit scores – but generally, the higher your score, the better. To improve their credit score, some people focus on building credit history, keeping low credit balances and working to pay off debt.
2. Get pre-approved for a mortgage
If you’ll be taking out a mortgage to buy your home, meet with a lender as early as possible in the process. They will assess your financial health and history, and determine what type of loan you qualify for.
Getting pre-approved for a mortgage means your lender confirms your mortgage option and identifies how much you can borrow to purchase a home. This is helpful as you set a homebuying budget and focus your efforts in your designated price range. Having a letter of pre-approval can also speed up the home sale once you find a new place to call home.
3. Connect with a real estate agent
Real estate professionals leverage their skills, experience and market knowledge to help ensure a smooth transaction. And the guidance from a trusted agent can make all the difference for homebuyers – especially those navigating the process for the very first time. Whether you’re after a single-family home, townhouse, condo, apartment or land to build something from scratch, an agent will be there to help you every step of the way.
An agent can find prospective properties, translate industry lingo, use effective negotiation skills, advocate on your behalf, suggest the best professionals for adjacent services like mortgage and moving, and so much more.
4. Determine homebuying priorities
Before you start browsing for homes, categorize what features are priority items you can’t live without, and which are nice additions if possible. For example, having a certain number of bedrooms may trump the desire for outdoor space or a pool.
If you’re buying a property with a spouse, partner, family member or friend, make sure everyone is in alignment on what housing elements are deemed essential.
5. Start searching for homes
It’s helpful to peruse local listings and see what options in your area look like. And if you come across any must-see places, let your agent know so they can schedule a tour. Head over to remax.com and check out what’s for sale where you’re looking to buy.
Ready to buy a home in 2025? Get in touch with a RE/MAX agent today.
Article originally appeared on RE/MAX.com.
