Is buying a home on your list of resolutions for 2023? Here are three easy steps to help you become a homeowner in the new year.

1. Get Pre-Approved for a Home Loan

Getting pre-approved for a home loan means having a lender review your finances to determine how much you can borrow to buy a home. This should be the first item on your to-do list for two reasons.

Pre-approval helps you set a realistic budget. The last thing you need is to fall in love with a home and then realize that you don’t qualify for a large enough loan to buy that home. With pre-approval, you’ll be able to search in the appropriate price range from day one.
Being pre-approved strengthens your offer by showing sellers that you qualify for the financing needed to close the deal. This makes sellers more likely to accept your offer. If you get pre-approved early, you’ll be able to confidently make an offer when you find the right home.

It's fairly easy to get pre-approved with a lender online. If you need a recommendation for a reputable lender, contact the real estate experts at Sequoia Real Estate for a referral.

2. Automate Your Down Payment Savings Plan

Depending on your finances and your loan type, you’ll likely need a down payment of around 3-10% of the purchase price (the pre-approval process will give you a more specific figure based on your unique circumstances).

One of the best ways to make sure you save enough is to set up automatic transfers. You can instruct your bank to automatically transfer a set amount to a special savings account every payday. This foolproofs your savings by eliminating the need to remember to transfer funds manually. And because the money is transferred as soon as your paycheck is deposited in your bank, you’re not tempted to spend it on other things!

Check out our Down Payment Savings Plan for more tips and tricks to make saving easier.

One more note on down payments: It is possible to get a home loan with no down payment. If you’re a military service member or veteran, or you’re considering buying a property in a rural area, you might qualify for a no-down-payment VA or USDA loan.

3. Get an Agent in Your Corner

A good real estate agent does so much more than just show you houses! Buyer’s agents can keep you posted on new listings that meet your criteria (those with good connections often learn of new listings before they even hit the market, which can give you an advantage over other buyers). Your agent can also advise you on a fair offer price, negotiate on your behalf, explain the purchase contract to you, and coordinate the inspections and appraisals needed to close the deal successfully.

Even better, in a typical real estate transaction, the seller pays all real estate agent fees. This means that your buyer’s agent is compensated by the sellers, and you don’t have to pay for professional representation.

If you’re planning to become a homeowner in 2023, you can start working toward that resolution today by contacting Sequoia Real Estate to be connected with a well-qualified buyer’s agent!