What You Need to Do to Buy a House in 2025: A Step-by-Step Guide
If buying a house in 2025 is on your to-do list, preparation is the key to success. This guide breaks the home-buying process into simple, actionable steps tailored for Marin County buyers. Learn how to evaluate your finances, save for a down payment, and navigate the real estate market with confidence.
Looking for more guidance? Click the link below to register for our 1st Time Home Buyer Class on January 29th at 6:30pm over Zoom!
1. Evaluate Your Finances
Start by getting a clear picture of your financial health.
Check Your Credit Score: Use tools like Credit Karma or AnnualCreditReport.com to check your score. Aim for 700+ for better mortgage rates.
Pay Down Debt: Focus on reducing high-interest debt to improve your debt-to-income ratio.
Create a Budget: Use apps like EveryDollar or a spreadsheet to track spending and save more effectively.
2. Save for a Down Payment
Understanding how much you need to save is crucial. For a $1,000,000 home:
5% Down Payment: $50,000
10% Down Payment: $100,000
20% Down Payment: $200,000
In addition to your down payment, plan for closing costs (2-5% of the purchase price).
Automate Savings: Set up automatic transfers to a high-yield savings account.
Cut Expenses: Scale back on unnecessary spending to speed up your savings.
3. Get Pre-Approved for a Mortgage
Pre-approval sets your budget and shows sellers you’re a serious buyer.
Find a Lender: Contact me for a trusted lender referral.
Prepare Documents: Gather pay stubs, tax returns, and bank statements.
Understand Your Loan: Know how your pre-approval amount translates into monthly payments, including taxes and insurance.
4. CONTACT ME TO DISCUSS WORKING TOGETHER
Working with a realtor simplifies the process. Someone like me will:
Help you understand the market and find neighborhoods that align with your priorities, such as schools, commute, and amenities.
Connect you with trusted professionals like inspectors and lenders.
Guide you through the home-buying journey, from scheduling showings to negotiating offers.
Click here to see a step-by-step guide of the process
5. Think About Your Priorities
Before house hunting, decide what matters most:
Do you need great schools nearby?
How long is your ideal commute?
Are you looking for proximity to parks, shops, or restaurants?
Clarifying these priorities will help you focus your search.
6. Understand the 2025 Market
Real estate trends and conditions can affect your buying process.
Watch Mortgage Rates: Rates impact your monthly payment. Lock in a good rate when possible.
Inventory Levels: Limited inventory in Marin County can mean more competition—be prepared to act fast. Another perk of working with a realtor like myself is that my team has access to off-market properties and can help you see homes before they hit the market.
Buyer Assistance Programs: Explore first-time buyer grants or tax credits available in 2025. Your lender can help guide you through these types of programs and help you assess if you’re a candidate.
7. Be Ready to Act
Timing is everything in a competitive market.
Keep Your Pre-Approval Ready: This shows sellers you’re prepared to close.
Stay Flexible: Be open to nearby neighborhoods or adjust your criteria.
Be Patient: Finding the perfect home takes time, but persistence pays off.
Home Insurance: You’ll want to make sure you’re able to get sufficient coverage for your home, so make this a priority in your due diligence and contact your insurance provider when you find a home you’re serious about.
8. Plan for Post-Purchase Expenses
Owning a home comes with ongoing costs, so budget accordingly.
Property Taxes: In Marin County, taxes are typically 1% or 1.1% of the purchase price, depending on the town.
Maintenance Costs: Budget 1% of the home’s value annually for upkeep (e.g., $10,000 for a $1,000,000 home).
