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Here is What You Need to Know About Buying a New Home in 2021

February 9, 2021
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Congratulations, you have decided now is the time to purchase a new home. Buying a home is an exciting process. But if you do not know what to do or where to start, you may get overwhelmed with the process and the array of homes in Houston that you will see. Read below to find out what you need to know about buying a home.

  1. Access your financials – The first step in buying a home is pulling your credit report. This will let you know where you stand financially. Your credit report will show you your credit score, debt-to-income ratio, and if there are any discrepancies on your report. It is important to speak with the credit bureaus to remove anything you find on your report that does not belong.
  2. Avoid making large purchases – Since you are trying to purchase a new home, it is important that you avoid making any large purchases. Now is not the time to finance new car or furniture. Doing so will impact your credit and most likely make your score go down.
  3. Get pre-approved for a home loan – The pre-approval stage is an important step to qualifying for a home mortgage. You will provide the lender with the necessary paperwork for them to determine what you will qualify for. They will take a look at your income, debts, financial history, and assets to get a better idea of who they are lending money to. The pre-approval letter will show you how much house you can afford. It will show sellers and real estate agents that you are serious about buying a home.
  4. Set a housing budget – Just because you qualify for a mortgage does not mean you have to spend that entire amount. Take a look at your finances, living expenses, and bills to see what you are responsible for monthly. From this you should make an informed decision on what you will actually be comfortable spending.
  5. Figure out what type of home should you buy – Now that you know what you qualify for and are comfortable spending, you can start your house hunting journey. Create a list of your wants and needs. Your list can be comprised of what type of home you want (condo, townhome, or single-family home), square footage, number of bedrooms, community and nearby amenities, and school district.
  6. House hunt – Do not settle on the first home you see. View many homes to get an overall picture of what you like. Make sure you are taking notes and pictures of each home you visit so that you remember what you saw, liked, and did not like with each home. Drive through communities of interest during the day and at night to get a better feel.
  7. Save for a down payment – It is customary to put down a 20 percent down payment of the total home cost. Doing so will allow you to bypass having to pay the private mortgage insurance (PMI). Work with your lender to find additional funding such as programs for first-time homebuyer, or VA and USDA loans. Keep in mind there are closing costs to consider. Your lender will know that amount once you select your home.

We are pleased to offer new homes in Houston at Spring Branch. Spring Branch is a townhome community located just outside the Loop and provides easy access to the City Centre and Galleria. This community is also conveniently located near plenty of shops, restaurants, and entertainment. It is zoned in the highly desirable Spring Branch Independent School District. Contact us today at 281-543-6360 to learn more about this community.

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This post was written by Sandcastle Homes

I just moved into my new Sandcastle home and I think it’s a wonderful place to live. They have been very helpful, particularly Lynette and Steve. From the owner Mike Salomen down, it has been a truly positive experience. I would highly recommend anyone who wants to buy a new home that is built of high quality to consider this home builder.

Neal Massey

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