4 tips for buying a home in 2022

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There are many good reasons for buying a home – financial stability, building equity in your own location, and not following a landlord’s rules. If you’re looking to buy a home in 2022, here are four key tips to help you get there.

1. Find out about real estate prices in advance

Property prices have skyrocketed this year due to high buyer demand and limited housing stock. These circumstances could remain unchanged in 2022. It makes sense to research different neighborhoods ahead of time and see what property prices are within your financial reach.

Some buyers do a house hunt before looking at the numbers. But it’s better to do it the other way around – first find out where you can afford to look, and then go to see different houses in person. If you go the other way around, you might fall in love with a house or town that you cannot afford.

2. Work on improving your credit score

Chances are you won’t have the money to buy a home next year. Rather, you will likely need a mortgage. The higher your credit score, the more likely it is that you will get not only a home loan but an affordable interest rate as well.

There are several ways you can improve your credit score. First of all, make sure that you pay all of your bills on time. Next, if possible, pay off some of your existing credit card debt, especially if you have a large balance in relation to your total credit limit on all of your cards. Finally, check your credit report for errors and correct those that could be dragging your score down.

Due to the excessive home value, you should expect a repayment in 2022. And if you want to avoid private mortgage insurance (PMI), you need to put a 20% down payment on the table for a traditional loan. If you haven’t saved that much, work on topping up your cash reserves. A great way to do this is to do a part-time job alongside your main job.

4. Prepare for the competition

While the housing stock could increase in 2022, there are no guarantees that it will happen. It could also take months before enough inventory hits the market to meet buyer demand. So if you are looking to buy a home next year, you need to prepare to compete with other buyers. Now is a good time to read up on various strategies for winning a battle of bidders.

One step that is worth taking in this regard is getting a pre-approval letter for the mortgage. That sends the message that you are a serious homebuyer whose finances have already been checked. And it can induce a seller to accept your offer over a comparable one.

While 2022 can be a difficult year to buy a home, there are steps you can take to increase your chances of success. Make sure to tick these boxes if you plan to become a homeowner in the next 12 months.


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