What Has Changed in the Approval Process for Buying a Home?

Though the home-buying process maintains certain consistencies over time, the market will fluctuate from year to year on both the national and local levels. That’s why knowing the current state of the housing market and its approval process is essential to finding (and securing) the home of your dreams.

What has changed in the home-buying process? Throughout 2023, national inflation from the previous year caused a significant slowdown in home sales. Price appreciation also decelerated through 2023 despite substantial increases in 2022.

As 2024 begins, the inflation of the past two years has decreased quite a bit, although prices of homes and mortgage rates are still on the higher end. Sellerscontinue to have more power than buyers in the early 2024 market. However, buyerscan still find an excellent deal on an incredible home if they play their cards right.

Tips for Securing Your Dream Home in 2024

The San Diego approval process for buying a home in 2024 has shifted in multiple ways, but much of the best advice for home buying still stands. The best way to start is to understand you homeownership goals.

Once you know what you’re looking to get from purchasing a home, you can follow these tips to get closer to your goals.

Understand Your Local Market

The housing market can be affected by so many factors. While national changes like inflation or recession can shift dynamics in local real estate markets around the country, the current state of housing in your area could be affected by changes to local laws, new builds in the neighborhood, zoning updates, and more.

Most buyers put in offers on homes during spring or early summer, but the current climate in your real estate market, as well as your financial preparedness, are more important than the specific timing. You should have your financial resources in order before you pull the trigger on a home purchase.

Additionally, watch home prices and how they fluctuate throughout the year. If they begin to spike later in 2024, you may want to hold off on your home-buying plans until things cool off.

Anticipate Extra Costs

Every potential homebuyer knows that the down payment will be one of the largest upfront expenses when buying a home. However, it’s not the only chunk of money you’ll be expected to present during the approval process.

Closing costs are another significant financial aspect of purchasing a home. These costs vary depending on your state and the nature of the transaction, but you should expect to pay a few thousand dollars in addition to your down payment to close on your home.

Get Your Credit in Order

Having the capital necessary to buy your home is essential to getting approved on your offer. However, the state of your credit can also affect whether your application is accepted.

Most loaning agencies will require a credit score of at least 620, and many mortgage loan companies will only consider applicants with scores in the 700s and above. If your credit score could use some padding, focus on increasing it before you try to buy a home.

Hire a Trusted Real Estate Pro

No one can counsel you on the ins and outs of real estate than an agent with years of experience in your area. That’s why you should trust the Selby Team with your next home purchase or sale in San Diego.

Contact us today to get started on finding your new home.