Deciding to buy a home can be both exciting and overwhelming. You want to acquire the house of your dreams, but you also need to be practical if you don't want to be stuck with an investment you can't afford. Here are three tips to keep in mind to help you make an informed choice on one of your life's biggest financial decisions.

What to Keep in Mind When Buying a House

1. Check Your Credit Score First

When it’s time to buy a home, you’ll first need to make sure your financial house is in order. Start by checking your credit score. In general, the higher the score, the more creditworthy you will appear to lenders.

A score that is above 740 is considered very good or excellent and qualifies for lower interest rates on a home loan, which could save you a lot of money. Request a credit score report from any of the three major reporting companies: Equifax®, Experian®, or TransUnion®. If the score is low, you can improve it by keeping your credit utilization below 30% and paying bills on time.

2. Use a Real Estate Agent

It’s the real estate agent’s job to do most of the legwork to find a home that meets your specifications. A reliable agent will have extensive knowledge of matters, such as property market prices, neighborhood safety, and getting the best home loan.

They can also negotiate a price that satisfies both you and the seller so that you can move into your dream home sooner. If you’re concerned about paying a hefty fee for these services, know that it's typically the seller who pays the agent’s commission, which is added to the cost of the home.  

3. Decide on the Property Requirements

When buying a home, take time to carefully consider all the people who will live in it and what their primary needs are. For instance, if you are single and enjoy nightlife and entertainment, a condo unit in an urban area that is close to movie theaters, nightclubs, and high-end restaurants may suit you best.

If you have a family or plan to start one, buy a home that is located in a quality school district for your children and has enough bedrooms to accommodate everyone. However, a senior person or someone with reduced mobility may want to downsize to a small home that is easy to take care of and close to a medical facility. 

Whether you're selling a house or looking to buy a home, check out Lawrence Realty Inc. Serving Red Wing, MN, and the surrounding areas, this 3rd generation family-owned company has been in business since 1948. With fresh real estate listings coming in every day, they can help you find a fantastic match and assist you in landing a deal you'll be happy with. Call (651) 388-4745 or visit their website to see their real estate listings.