So How do you Prepare to buy Real Estate?

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The very first step before buying real estate is getting your finances in order. The foundation is saving as much money as you can and paying off as much debt as you can. 

• Start with pulling your report to see where you stand.
• If your credit is at 620 or below, take steps to improve your credit.
• Prepare documents to show your employment and earning history.
• Prepare documentation of all your assets
• Pay down as much debt as you can. The goal is to keep your Debt-to-Income below 43%.
• If you are a freelancer, there are techniques to making this process a little easier. (See my blog post on this).
• Talk to a lender to get preapproved. Confirm how much you would most likely qualify for and confirm whether you need to track down any other information to lock a loan in.

Having a good lender and agent on your side will make a big difference in getting you ready to buy.

Understanding what the neighborhoods are like, the market activity, prices, whether there is an HOA or condo fee/what the typical association fees are, will help you. You will be able to strategize better and choose the best locations that meet your budget and goals.

For investment preparation, consider the following: 

• Confirm financial readiness 
• Confirm financial goals
• Detailed property analysis 
• Rental market analysis
• Risk assessment and exit strategy
• Factor in the costs 
• Research the regulations and laws of the area and neighborhood (especially if planning to do short-term rentals)
• Select a good agent and lender (if a loan is needed) to help guide you along the way. 

Remember, even if you are a savvy investor, a great agent can handle the actual negotiation on your behalf and help protect you and your interests.