97% of Home Buyers Buy Homes Online, Report Says: Tips for Buying a Home in the Digital Age
Technology has made it easier than ever to buy homes online, even if you’re just window shopping for your dream million dollar home.
The internet doesn’t just make it easier to navigate the local building stock. You can use your smartphone or computer to compare properties, search for mortgages, find a real estate agent, and more all from the comfort of your home.
In this spirit, a new survey from the National Association of Realtors found that 97% of homebuyers used the Internet when looking for housing. And more than half of buyers found the home they ultimately bought online, compared to 28% who were shown the home by a real estate agent.
Read on to learn more about how technology can help you during the home search process. You can determine the price of the home you can afford, monitor your credit, and compare mortgage offers all in one place on Credible.
WHAT ARE THE NEW FHA LOAN LIMITS FOR 2021?
5 Ways Technology Can Help During The Home Buying Process
While there are many home buying apps that can help you find the home you want, there are plenty of other ways you can use technology during the home buying process. Here are just a few:
- Use a mortgage payment calculator to figure out how much you can afford to buy a home
- Check your credit report and monitor your credit score online for free
- Compare mortgage offers from multiple lenders from the comfort of your home
- Secure your mortgage pre-approval letter to show buyers you’re serious
- Protect your investment by shopping for home insurance
Once you’ve done the hard work of saving for a down payment and preparing your finances for homeownership, here’s how you can make the home buying process easier (and maybe less so). expensive) with a little internet research.
WHAT IS PRIVATE MORTGAGE INSURANCE (PMI) AND HOW DOES IT WORK?
1. Use a mortgage payment calculator to figure out how much you can afford the house.
One of the first steps in the home shopping process is to determine your price range. You’ll need to research the median price of a home and its value per square foot in your area, but how much you spend on a home depends more on your personal finances.
You can use Credible’s online mortgage calculator to determine your monthly payment, so you can compare it with local rental costs. All you need to do is enter your estimated mortgage rate, the value of the house and the length of the loan. Keep in mind that buying a home can come with more unforeseen expenses than renting, as you will be responsible for any necessary upgrades and repairs.
CALCULATE YOUR DEBT / INCOME RATIO AND KNOW WHERE YOU ARE
2. Check your credit report and monitor your credit score online for free
Mortgage lenders will want to check your credit history to determine whether or not they want to extend an offer. Borrowers should aim to have a credit score of at least 620 to secure a mortgage, but a higher credit score can be even more beneficial in the form of lower interest rates.
You can check your credit report for free with the three bureaus on www.AnnualCreditReport.com, this way you can find errors and dispute errors. Once you have a good idea of your situation, you can sign up for free credit monitoring through Credible to track your credit score.
HOME RATING: EVERYTHING YOU NEED TO KNOW
3. Compare mortgage offers from multiple lenders from the comfort of your own home
Mortgage rates can vary among lenders, which is why it is important to compare the offers of several lenders before borrowing a home loan. While mortgage rates are near their historic lows, it’s still important to make sure you’re getting the lowest interest rate possible for your financial situation.
You can compare mortgage rates for free, and without impacting your credit score, using the Credible online marketplace. This way, you can explore multiple mortgage lenders by filling out just one form.
5 THINGS TO LOOK FOR WHEN BUYING AN OLD HOME, ACCORDING TO A HOME INSPECTOR
4. Secure your mortgage pre-approval letter to show sellers that you are serious.
Before you can make a serious offer on a home, you need to get pre-approved for a mortgage lender. This shows sellers that you have the necessary financing to make a purchase, so they can accept your offer.
A pre-approval letter is generally valid for 90 days. The sooner you get mortgage pre-approved, the better your chances of getting a competitive mortgage rate before it expects to increase next year.
You can start the mortgage pre-approval process online with Credible. Once you choose a lender, you will submit a formal request and they will give you a pre-approval letter that you can bring to the negotiating table.
THE AVERAGE COSTS OF CLOSING A MORTGAGE OVER $ 6,000, A STUDY FOUND: HERE’S HOW TO PAY
5. Protect your investment by shopping for home insurance
Once you’ve purchased your home and completed the closing process, the hard part is over. But before you get comfortable, make sure you have enough home insurance to protect your new home.
It may seem easier to skip the necessary paperwork when comparing your home insurance options, but it doesn’t have to be. It’s easy to research home insurance companies and choose the right plan for you from Credible’s online marketplace. You can even compare the free quotes of several insurers to enjoy the financial advantages with all the convenience of online shopping.
EVICTION MORATORIUM UPDATE: WARREN AND THE PROGRESSIVE PRESENTS BILL TO EXTEND BAN
Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.