Prep Tips for a 2024 Home Purchase

With the beginning of a new year looming in the next few weeks, it’s natural to think about your financial goals. If you’re considering buying a new house in 2024—whether it’s your first or your tenth—being prepared can make the difference between buying your dream home and settling for something less.

Get your credit score in tip-top shape
Ensure your score is at its best before you apply for a mortgage. Check your score with all three major credit bureaus once a year for free. If you need to improve your credit score: follow a budget, pay bills on time and get rid of debt.

Determine how much house you can afford
Evaluate your financial situation. “This is a great time to use a calculator, like our mortgage qualifier, to determine how much you can comfortably borrow,” suggests Kara Loftus, vice president of mortgage services for Mountain America Credit Union.

Save for your down payment
Depending on the loan, there will likely be a minimum down payment. Count on paying at least 3% of the property’s purchase price—but aim for 20%. If you pay less than 20% upfront, you may have to pay private mortgage insurance or other fees.

Research lenders
If you’re serious about buying a home in the near future, now is the time to start looking into lenders. Find someone who will work well with you and your needs by asking for recommendations from friends and family and doing research online.

Gather your documents
Your lender will want to ensure your financial situation and identity are both in order. Get your documents ready ahead of time so you don’t have to search for everything when the time comes.

Get prequalified
Once you’ve decided on a lender, it’s time to get prequalified. Most sellers prefer to work with prequalified buyers because they know these buyers are able to pay the asking price. Take this opportunity to discuss different types of mortgages to find the best one for you.

Keep the status quo
When you’re close to buying a home, major financial changes can stop the process in its tracks. Don’t change jobs. Don’t apply for any new credit—for something like new furniture, a credit card or car. This could lower your credit score enough to put you out of the running in the price point you need.

Make a wish list
Start with the basics—number of bedrooms and bathrooms, square footage and school district—then list all the other features. Don’t worry—it’s okay if your list is long! Put all non-negotiables at the top, then add other features you’d like. As you start looking for homes, adjust the list as needed.

Interview real estate agents
A real estate agent can be a valuable resource during the homebuying process. Find someone knowledgeable about the housing market, specifically in the area you’re considering. Referrals from family and friends are a great place to start.

Check out your preferred neighborhood
Before you put in an offer on a home, check out the neighborhood where you want to live. Visit during different times of the day and night and test the driving/public transportation routes to work, shopping and other places you travel often.