5 Essential Steps to Prepare for Buying a Home in 2025

With mortgage rates dropping, 2025 could be the perfect time to jump into the housing market. But lower rates could also mean more competition, especially in hot real estate markets, as other buyers start looking for deals, too. 

If you’re thinking about buying a home next year, it’s smart to start preparing NOW so you can be ready when the time comes. Here are five tips to help you get started: 

1. Get Preapproved for a Mortgage Early

If there’s one thing you should do before starting your home search, it’s getting preapproved for a mortgage. Not only does this give you a solid idea of how much home you can afford, but it also shows sellers that you’re serious. Plus, it locks in your interest rate for a set period of time, which can be a lifesaver in a competitive market.
Why now? With mortgage rates falling, more people will be house-hunting, so getting preapproved now ensures you’re ready to act fast when you find your dream home. Don’t wait until you’re already in the thick of things; being preapproved can put you ahead of the pack.

2. Work with an Independent Mortgage Broker

Sure, you could go straight to your bank for a mortgage, but why limit your options? Independent mortgage brokers can shop around and find the best deals across multiple lenders, giving you more choices. They can often access rates and products that aren’t available directly through the bank.
As the market heats up, having a broker on your side can make a world of difference. They’ll guide you through the process and help you navigate rates and products, so you’re not missing out on any savings. Plus, they’ll be your go-to for advice, and who doesn’t love having a trusted expert in their corner?

3. Check Your Financial Health

Before you dive in, take a look at your finances. Lenders will want to see your credit score, income, and how much debt you’re carrying. The stronger your financial profile, the better the mortgage terms you can get.
Use the time before buying to boost your credit score if needed, pay down debt, and build up your savings for a down payment. These steps will not only improve your chances of getting approved but could also score you a lower interest rate.

4. Do Your Homework on the Market

Research, research, research! Even though falling rates can make homes more affordable, you’ll want to know what’s happening in your local market. Are prices expected to rise? What’s the neighborhood like? Are there any new developments coming that could increase property values?
Knowing the market will help you act fast when the right home comes along. An independent mortgage broker can also give you insights into what’s happening locally, so you’re prepared when it’s time to make a move.

5. Plan for Extra Costs

Owning a home comes with more than just a mortgage payment. Property taxes, insurance, utilities, and maintenance are all part of the package. Make sure you’re budgeting for these extra costs so there are no surprises down the road.

With the market expected to become more competitive, some expenses—like property taxes or home maintenance—might creep up. By planning for these, you’ll avoid stretching yourself too thin.

By preparing now, you’ll be ready to take advantage of the lower rates and land your dream home in 2025. Ready to take the first step? Reach out to one of our mortgage brokers today and start preparing for your home purchase.