What better way to step out of 2020 and into 2021 than to buy that new home you’ve been dreaming of? Whether you’re a first time home buyer or you already own multiple properties, 2021 can be your year!

As real estate agents, we’ve seen plenty of home buying horror stories leading to wasted time and money. But, it doesn’t have to be that way. If your new year’s resolution is to buy a home, then you’ve come to the right place. With our 20+ years of experience and expertise, we’ve put together this New Year’s resolution guide for homebuyers, complete with our suggested timeline to follow through on your goals.

While this New Year’s Guide includes a timeline, it's worth noting that every home buying experience is different. You can always move faster or slower at your own pace. But we know failing to plan is planning to fail, so we’ve built this guide with digestible steps and a reasonable timeline that will allow most people to complete their home buying goals by the end of the year.

So read on to learn how YOU can buy a home in 2021!

Step 1: Find a Buyer’s Agent You Can Trust

TIMELINE: Approximately 1 month (January)

When deciding to buy a home, many people start by blindly looking at various real estate websites like Zillow or Realtor.com. Their initial concern is to find a home they can afford. However, once they start they usually realize that there are more factors to consider such as maintenance, location, school districts, etc. With all of these factors thrown in, the process of finding a home can feel overwhelming.

That’s why your first step should be finding a real estate agent you can trust to help you get started on the right foot as an educated home buyer.

Finding a trusted agent sounds easy in theory, but how do you know who you can trust? The National Association of Realtors states that the average realtor sells only 6 homes a year, so you need to find an expert agent who’s not doing this part-time.

If you’re looking for a real estate agent, we’d love to hear from you. Whether you’re looking to buy in Orlando where we are, or all the way in California, we know someone who can help.

But don’t just take our word for it, when looking for a real estate agent make sure you:

Talk to friends and family about their experiences. They might even have referrals for agents in the area.
Check out Facebook, Zillow, and Google reviews for agents you’re considering.
Ask questions to understand how the realtor has helped other buyers in the area and how long they've been in the business.
Try to find someone who you feel comfortable with and who you trust. Remember, you’ll be spending a lot of time with them touring and talking in the coming months.

Once you’ve found and consulted with the perfect buyer’s agent for you, you’ll be prepared to secure financing and be one step closer to your new 2021 home.

Step 2: Talk to a Direct Mortgage Lender

TIMELINE: Approximately 1 week - 3 months (February - April)

After hiring an agent you can trust, it’s time to meet with a direct mortgage lender to determine your budget and figure out which financial action steps will be necessary to purchase your home. In most cases, your real estate agent will refer you to a good lender, which is why the buyer’s agent comes first!

We suggest finding a direct mortgage lender rather than a big bank because they’re better equipped to meet with you on a personal level and help set you up for financial success as you navigate the home buying market. A direct mortgage lender can provide guidance on questions like whether or not it would be better to save more money for a downpayment or clean up credit before starting the home buying process.

Step 3: Get Your Finances & Budget In Order

TIMELINE: Approximately 1 week - 3 months (February - April)

The next step is to finalize your home buying budget with your direct mortgage lender. You’ll need to have enough funds saved to cover a down payment, closing costs, and any other costs you’ll incur when you do find the house of your dreams.

To assess your budget, your lender will ask for documentation like tax returns, credit scores, employment verification, etc. The lender may then make recommendations to optimize your financial situation for the home buying process, like saving more for a down payment, reducing debt, or improving your credit score. Finalizing your budget may take more or less time depending on what your lender has recommended for you.

Finances may seem easy enough, but they shouldn't be rushed or overlooked. You’ll need an accurate budget to ensure that your house dreams align with your financial reality and that you really are ready to move forward to the next steps of the homebuying process.

Step 4: Determine Your Needs & Wants In a Home

TIMELINE: Approximately 1 month (May)

No matter how big of a budget, it’s highly unlikely that you’re going to find the “perfect house.” However, what you can find, with the help of a great agent, is a home that aligns with your highest priorities off the bat, and that you can transform into your dream home with a few small tweaks. So, the next step is simply to know what you want and need in a home and neighborhood.

This is a step your agent should help you with. We search for homes every day and will help guide you through the questions that you may not think to ask yourself.

In the meantime, some things to consider on your own include:

What size do you need (bedrooms, bathrooms, square footage, and lot size)?
What locational aspects are important (school district, entertainment, shopping, etc.)?
Do you need a yard (for pets, children, entertaining, etc.)?
Do you need a garage? What size?
Do you want a pool and/or waterfront property?
Which home style do you prefer (Modern, Mediterranean, Art Deco, Ranch, etc)?

Search the neighborhoods and homes in the area you want to live in and stay inspired. As a result of recent digital innovations, you also have the opportunity to check out virtual house tours (like this one) or head over to our Keller Williams real estate app to filter your searches by a variety of factors.

Your agent is another great resource for helping you prioritize your home needs versus wants - let them guide you through this process.

Step 5: Get a Pre-approval Letter From a Direct Mortgage Lender

TIMELINE: Approximately 1 week (May)

Once your finances are in order, it’s time to get a pre-approval letter from your direct mortgage lender. Pre-approval letters are typically valid for 60-90 days and verify your eligibility for a mortgage. This ensures you’re ready to put in an offer once you find the house you're looking for.

It only takes a few days to receive a pre-approval letter, so you want to make sure when you ask for one that you’ll be ready to buy in the next 60-90 days.

Alternatively, if you’re a cash buyer you’ll need a proof of funds document, which an expert agent can guide you in securing.

Step 6: Start Touring Homes

TIMELINE: Approximately 2 weeks - 3 months (June - August)

With your pre-approval letter in hand, you’re ready to start touring homes with your agent!

Here at Abode, we sit down with you before going out to look at homes to make sure that we hone in on your budget, needs, and wants to create a time-efficient plan that will highlight the best houses for you. We also help you route and schedule tours to make the most of your time. We know you’re busy, and the best way to avoid a stressful home touring experience is to find an agent who can streamline the process to help you navigate homes and neighborhoods effectively.

Step 7: Put In an Offer and Get Your Offer Accepted

TIMELINE: Approximately 1 week - 3 months (September - November)

As soon as you’ve found a house you’d like to call home, it’s time to put in an offer.

Again, an expert buyer’s agent will make this step much easier than going at it alone. For instance, if you’re in a multiple offer situation, an agent can help you submit a competitive and “clean” offer to stand out and win the bid.

Having an expert agent who is well versed in the market and has past experiences in the current housing market will always make it easier to submit an offer and win.

Step 8: Close On The Property

TIMELINE: Approximately 1 week - 2 months (November - December)

Now for the most exciting step, it’s time to close on the property. Once all of the contingencies have passed- it’s time to close! This step makes all of the hard work worthwhile. You’ll finally have your new home and it’ll be time to move in and add the final touches to make it truly yours.

Step 9: Maintain a relationship with your real estate agent

TIMELINE: Indefinitely!

You might be wondering why, if you’ve already bought a house, you should keep in contact with your real estate agent. The truth is that a good real estate agent can continue to be an asset even after the transaction closes.

After you move in, you might have questions about insurance or finding the perfect vendor for a specific service, and your agent is the perfect person to ask.

Additionally, if your agent has provided you with an easy house buying experience, you can refer them to any family or friends in search of an outstanding agent to help them with their housing needs.

Plus, years in the future when you want to move again, your agent can be the perfect person (because they already know you) to help you sell your home and buy a new one.

If that’s not enough, real estate agents are known for throwing great client appreciation events that allow people to make great friends and, in our case, eat great pie!

2020 may have thrown us all a few curveballs, but 2021 is a new year with lots of possibilities! If you are looking to buy a house we hope that this step by step guide will help you make the first moves towards making 2021 the year you find your perfect home.

If you’re looking for a home in the Orlando area this year, we at Abode at Keller Williams Winter Park Realty may be the perfect choice for your needs. Whether you're ready to buy a house now, looking to sell so that you can buy a house in the near future, or just looking for more information to help you make buying your dream house a reality, don’t hesitate to contact us at 321-277-8271. We are here and ready to make 2021 a memorable year that you won’t forget!

Enjoyed these insights and looking forward to more?

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Steven Ritz, Buyer Specialist - Call 321-277-8271 or email here

Linda Sitek, Listing Specialist - Call 407-963-6544 or email here

Brought to you by Abode at Keller Williams Winter Park Realty

Abode's 2021 New Year's Resolution Guide For Home Buyers