How to Become a Homeowner in 2025

December 30, 2024

If owning a home is at the top of your New Year’s resolutions, you’re not alone! Purchasing your first home is an exciting journey, but it requires careful planning and strategic steps. You can confidently navigate the homebuying process by following the right approach, setting clear goals, and staying informed.

Steps to becoming a homeowner: 

  1. Understand the current housing market
  2. Decide what your wants and needs are 
  3. Determine how much you can afford
    1. downpayment
    2. monthly budget for other expenses
    3. understand your mortgage options
  4. Find a local real estate agent
  5. Get pre-approved for a mortgage
  6. Start touring houses!

Let’s dive into these steps so you can be prepared and confident when starting this journey. 

Understand the Current Housing Market
Understanding the state of the real estate market in your area helps you make informed decisions about timing, pricing, and your overall strategy. Knowing if it’s a buyer’s or seller’s market can impact how much you offer on a home, what contingencies to include, and how to negotiate. Additionally, being aware of current trends, such as interest rates or inventory levels, can give you an advantage in finding the right home at the best price. By staying informed, you can avoid costly mistakes and feel confident throughout the homebuying process.

What Are Your Wants and Needs
Begin your home-buying journey by determining what’s important to you in a home to help narrow down your search. Decide what matters most to you – whether it’s a prime location, must-have amenities, or a certain number of rooms. Once you get a better idea of what you want in a home, look at houses for sale that meet your criteria, take a look at their cost, and consider whether they fit within your budget.

Determine How Much You Can Afford
Determining how much you can afford has many layers. You are going to want to figure out how much you can set aside for a downpayment. Analyze your monthly budget to ensure you can handle mortgage payments along with your other bills. After that, you’ll need the financial bandwidth to pay for homeowners insurance, property taxes, general maintenance and utilities, and unexpected repairs. It is smart to have ample savings for the closing costs and to have flexibility to address potential counter offers.

Luckily, there are many resources out there to help you figure all this out. Understanding the loan types and what kind of mortgage you want will help you see exactly how much you’ll need for a downpayment. You may be able to qualify for some loans where your down payment minimum will be lower than 20%. There are also downpayment assistance programs along with different first-time home buyer loan options. Getting pre-approved for a mortgage will also help you determine how much you can afford in a home. 

Find a Local Real Estate Agent
Find someone in your area that you feel you can trust. Don’t be afraid to interview a few to select an agent that fits your personality and communication style and is knowledgeable about the area where you are looking to buy. After all, purchasing a home is often one of the biggest purchases a person makes so you want to be working with someone you feel confident in.

Get Pre-Approved for a Mortgage 
Preapproval for a mortgage determines what loans you could be approved for, the amount you can borrow, and what your interest rate could be. Getting fully preapproved before searching for homes can make you a more competitive buyer and show the seller that you are serious. Your agent should be able to give you advice and guidance on which lenders and programs may benefit you.

Let’s make 2025 the year you turn your dream of owning a home into a reality!


Sources: U.S. News, Bank Rate, Lower My Bills

Founded in 1971, First Weber Realtors® is a part of HomeServices of America, the nation’s largest provider of total home services.
You can start searching for Wisconsin real estate and Wisconsin real estate agents at firstweber.com

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