When you’re in the market to buy a home, it’s easy to get caught up in the excitement of house hunting. However, jumping straight into searching for your dream home without first securing financing can end up costing you. Before you start browsing listings, it’s crucial to follow a strategic approach to obtain the best financing rates, which will save you money and reduce stress in the long run. Here’s a three-point plan to ensure you’re financially prepared before you step foot into a potential new home.

1. Get Preapproved for a Mortgage

Securing a mortgage preapproval should be your first step in the home buying process. This not only provides you with emotional security during house hunting but also protects you against potential interest rate hikes. Obtaining preapproval is typically free and without obligation. It involves completing a credit application and receiving a certificate that guarantees a mortgage at a specified level when you find your desired home. With preapproval, you avoid the hassle of last-minute rate shopping and can lock in the lower rate if interest rates drop.

2. Receive Preferred Access to Special Low Financing

Working with an experienced real estate agent can offer significant advantages. Agents who handle a high volume of transactions may have strong relationships with lenders who are eager to do business with their clients. These connections can lead to negotiating better-than-average financing terms such as lower down payments and interest rates. This can dramatically ease the process of buying a home, making it more affordable and allowing many buyers to purchase their dream home sooner than anticipated.

3. Utilize a Househunting Service

Many agents provide a house-hunting service that can streamline the search for your ideal home. By supplying your agent with details such as the number of bedrooms, price range, and preferred neighborhoods, you can receive advance notifications of homes that meet your criteria. This service often includes photos and can give you a significant advantage by informing you of suitable listings before they become widely known to other buyers. This early access might even enable you to negotiate a better price. Once you have a list of potential homes, you can drive by them independently and then select which ones you’d like to visit with your agent.

By following these steps, you position yourself to find the best possible home while ensuring your financial arrangements are secure and advantageous. This approach not only saves you money but also turns the complex process of buying a home into a more streamlined and enjoyable experience.