Buying your first home is an exciting time. It’s likely the largest purchase you’ve ever made, and homeownership can be very rewarding if you find the right property. However, this process can be overwhelming if you don’t know where to start. Consider the tips below when you buy a home for a smooth and carefully considered purchase.

What to Do When You Buy a Home

1. Be Financially Prepared

There’s a lot to do before you can start looking at listings. Check your credit score as early as possible and look for any mistakes on your report. Have them repaired and work on improving your credit if needed. Most buyers need a score of at least 620 to qualify for a loan.

Begin to save up for your down payment. You likely won’t need 20 percent, but you will still want to have as much of the down payment as possible to reduce risk and make your offer more desirable. Get pre-approved by a mortgage lender to determine your budget, and calculate a monthly mortgage payment that will fit in with your budget. Keep in mind that just because you’ve been approved for an amount doesn’t mean you should spend that much.

2. Make a List

Make three lists to aid you in this process. It should include your necessities for a new home, optional features you’d like your new home to have if possible, and deal-breakers for a property. Show these points to your real estate agent and review it whenever you’ve found a home you’re considering. When shopping around,  it can be easy to have an emotional connection with a home and forget your priorities. This list will ensure you buy a home you’ll be happy with for a long time.

3. Validate the Price

When you’ve found your dream home, don’t just price your offer based on what the seller is requesting. Most sellers overprice their homes when they first put it on the market. Instead, have your real estate agent conduct a market analysis to determine the home’s market value. A home that seems right for you isn’t worth it if you’ll have to pay well over market value for it.

Working with an agent will make all the difference as you buy a home. The team at Lawrence Realty in Red Wing, MN, will send you real estate listings that fit your goals and guide you through the entire purchase process. This third-generation family-owned business has been the trusted local realtors of the area since 1948. Start browsing properties online and call (651) 388-4745 to schedule your free consultation.