So, you’ve decided to buy a home in three months? Buckle up, because the next 90 days are going to be a whirlwind of preparation. If you’ve followed our advice from 12 months and 6 months out, you’re already in good shape. Now, let’s focus on the crucial steps you need to take in these final three months before your big purchase.
Step 1: Get Your Finances in Perfect Order
1. Finalize Your Budget: By now, you should have a good idea of what you can afford. Review your budget to ensure you’re considering all the costs associated with buying a home, including down payment, closing costs, moving expenses, and potential renovations.
2. Boost Your Savings: Make sure you have enough for your down payment and extra savings for emergencies. If you’re close but not quite there, consider cutting non-essential expenses for the next few months to boost your savings.
3. Check Your Credit Score: A good credit score can save you thousands in interest over the life of your mortgage. Ensure there are no errors on your credit report and pay down any high-interest debts. Avoid opening new credit lines or making large purchases until after your mortgage is secured.
Step 2: Organize Your Documents
1. Gather Financial Documents: Lenders will require detailed documentation of your financial history. Start gathering pay stubs, tax returns, bank statements, and records of any debts or assets. Organizing these now will save you a headache later.
2. Employment Verification: Ensure your employment records are up-to-date and your job is stable. Any changes in employment could affect your loan approval process.
Step 3: Refine Your Home Criteria
1. List Your Needs and Wants: Reevaluate your list of must-haves and nice-to-haves in a home. Think about the number of bedrooms and bathrooms, type of home (single-family, condo, etc.), and any specific features like a backyard or a home office.
2. Research Locations: Now is the time to narrow down your preferred neighborhoods. Consider factors such as proximity to work, school districts, safety, amenities, and future resale value. Visit these areas at different times of the day to get a feel for the community.
Step 4: Start House Hunting
1. Find a Real Estate Agent: A knowledgeable real estate agent can make your home search much smoother. Look for an agent with good reviews and local expertise. They can help you find homes that meet your criteria and navigate the buying process.
2. Attend Open Houses and Showings: Start visiting homes in your desired neighborhoods. This will give you a better idea of what’s available within your budget. Take notes and pictures to help you remember each property.
Step 5: Get Pre-Approved for a Mortgage
1. Shop Around for Lenders: Contact multiple lenders to compare rates and terms. A pre-approval letter will show sellers that you’re a serious buyer and give you a clear idea of how much you can borrow.
2. Understand Your Loan Options: There are various types of mortgages available, such as fixed-rate, adjustable-rate, FHA, and VA loans. Research these options and discuss with your lender which one is best suited for your financial situation.
Step 6: Prepare for the Move
1. Plan Your Move: Whether you plan to hire movers or do it yourself, start organizing your move now. Declutter your current home, decide what you’ll take with you, and consider a timeline for packing.
2. Notify Important Parties: Make a list of people and services you need to notify about your move, including your employer, utility companies, and the postal service. Arrange for any necessary transfers or new services at your new home.
Conclusion
Buying a home in three months is a fast-paced but exciting journey. By focusing on your finances, refining your home criteria, and starting the house-hunting process, you’ll be well-prepared to find and purchase your dream home. Stay organized, stay focused, and remember to enjoy the process. After all, you’re about to make one of the most significant investments of your life!
