How to Buy a Condo in One Year: A Step-by-Step Guide
Let’s start the Spring off right. If you’ve been dreaming of a new condo, it’s time to get started! Here’s a month-by-month guide to planning for and buying a new condo.
Month 1: Brush Up on Your Market Knowledge
The best way to get started? Brush up on your real estate knowledge. Scour the market with a fine-tooth comb. Check out things like current inventory in your city, average sales prices, and the listing-to-sales-price ratio.
This research will help you familiarize yourself with the market. Check out Ann Arbor Condo complexes here!
Month 2: Address Your Budget
Let’s finalize our budget shall we? The easiest way to do this is to get pre-approved for a mortgage.
Meet with a lender (let us know if you’d like a recommendation) to review your finances. The lender will go over your financial history, and then let you know what the bank is willing to lend you.
Now you have an idea of what your mortgage will be and what you can afford in a condo.
Month 3: Find Your Perfect Location
Do some soul searching. Where will you be happiest? Explore locations based on their job market, housing affordability, and overall quality of life. The goal is to narrow down your search to one city.
If you have the means, try to take some time off to go and visit a few areas. Once you find an area, it’s time to narrow your search down even further by pinpointing specific complexes or parts of town that will best meet your needs.
Month 4: Find the Right Agent
Find the right real estate agent to help you buy a condo. Trust us: they’ll save you time, money, and more than a few headaches.
If you need any recommendations, let us know. We have more than a few ideas.
Month 5: Define Your Dream Home
Now is the fun part! Start putting together a list of everything you want in your dream home. We recommend starting by defining your “must-have” features. Think of the things you can’t live without. That’s a great place to start.
It’s also important to know the difference between “must-have” (i.e. you need 3 bedrooms and 2 bathrooms) and “nice-to-haves” (it would be nice to have granite countertops, but you can also live without them.)
Month 6-7: Begin Searching
Use a handy home search tool like ours to begin browsing homes for sale in your target area. Once you find a home that you like, it’s time to schedule a tour.
Private tours are often better than traditional open houses because you have more time to walk through the unit, without the pressure of competing with other potential buyers.
At some point in your home-search journey, you’re likely to come across at least one that calls your name.
Month 8: Fall in Love and Make an Offer
You’ve found the one; now make an offer!
Work closely with your agent to compare recently sold condos in the area and craft the perfect offer.
Ask your agent for their advice—like whether or not they think the price is right for this home, as well as what other contingencies you might want to include in your offer. This is when your real estate agent will prove truly valuable: they’ll be able to provide useful insight in order to help you get the home of your dreams for the best possible price.
Month 9: Schedule All the Things
Let’s get down to business. It’s time to negotiate with the seller, schedule an inspection, have your real estate agent complete any re-negotiations (based on that inspection), and get the condo appraised by a professional.
You’ll also have to take care of some more paperwork to finalize your mortgage loan.
Month 10 – 12: Let’s Start Closing
Next, you’ll start the closing process.
Buckle up, because we’re in it for the long haul! Here’s where you’ll finalize your mortgage approval (this requires a ton of paperwork) and meet with an attorney to set closing dates and sign paperwork prior to closing. This is also the time when you’ll review closing fees and the exact monthly costs for your condo.
At the end of it all comes the close. You’ll pay the remaining closing fees, sign all the paperwork, and collect your keys Congratulations! You just bought a home!!!
Ready to Begin?
We’re ready to help. Give us a call today at 734-761-3060 or info@condohotline.com to get started.
Pre-Approval: Your 1st Step in Buying a Condo
Step 1 – Get Your Pre-Approval
In many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show you are serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage before starting your search.
Even if you are in a market that is not as competitive, understanding your budget will give you the confidence of knowing if your dream home is within your reach.
Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:
“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”
One of the many advantages of working with a local real estate professional is that many have relationships with lenders who will be able to help you through this process. Once you have selected a lender, you will need to fill out their loan application and provide them with important information regarding “your credit, debt, work history, down payment and residential history.”
Freddie Mac describes the ‘4 Cs’ that help determine the amount you will be qualified to borrow:
- Capacity: Your current and future ability to make your payments
- Capital or cash reserves: The money, savings, and investments you have that can be sold quickly for cash
- Collateral: The home, or type of home, that you would like to purchase
- Credit: Your history of paying bills and other debts on time
Getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and it often helps speed up the process once your offer has been accepted.
Bottom Line
Many potential home buyers overestimate the down payment and credit scores necessary to qualify for a mortgage today. If you are ready and willing to buy, you may be pleasantly surprised at your ability to do so. Call us today with any questions about obtaining your pre-approval or any steps in the home buying process! 877-761-3060
