4 in 10 Americans Plan to Buy a Home in 2024. Here’s How to Set Yourself Up to Do the Same

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Could homeownership be in the cards for you in 2024? Read on to find out. 

It would be more than fair to say that 2023 was not an easy year to buy a home. Not only were home prices elevated, but mortgages were expensive to sign from the start of the year through the end of it.

Things may not be much better in 2024. However, a good 41% of Americans plan to buy a home in 2024, according to a recent survey by Architectural Digest. If you’re hoping to join the ranks of 2024 home buyers, make these moves sooner rather than later.

1. Get pre-approved for a mortgage

Mortgage pre-approval is not the same thing as a mortgage lender officially giving you a home loan. But it’s a step in that direction.

The pre-approval process has you providing a lender with certain financial information that it then verifies. From there, you’ll be told what loan amount, if any, you’re pre-approved for. If your financial situation doesn’t change for the worse between the time of your pre-approval and the time of your mortgage application, then you generally won’t have a problem getting a mortgage.

It’s important to get pre-approved for a mortgage for two reasons. First, as you start searching for homes, having pre-approval sends the message to sellers that you’re a serious buyer. That could give you an edge over the competition. And that’s important seeing as how the U.S. housing market still sorely lacks inventory.

Secondly, your mortgage pre-approval letter should indicate the amount you’re approved to borrow. That could help you determine whether it’s a good time to buy a home based on what you can afford, and what price range you should be looking at.

For example, let’s say you’re pre-approved for a $240,000 mortgage, and you have $40,000 to put down on a home, giving you $280,000 in buying power. If properties in your preferred neighborhood are $330,000 to $350,000, it’s a sign that you may not be ready to buy in 2024. But if there are properties that range from $260,000 to $350,000, you’ll know which ones to consider.

2. Check your credit score — and give it a boost if it needs one

The higher your credit score, the more likely you are to not only get approved for a mortgage, but lock in a more competitive rate on one. If you’re eager to buy a home in 2024, check your credit score sooner rather than later. You can often access it via a bank or credit card account statement.

If your score is in the upper 700s or higher, then you’re in pretty good shape to get a mortgage and snag a favorable rate. If your score is lower, try your best to give it a lift. You can do so by paying incoming bills on time and correcting errors that may be lurking on your credit report.

3. Whittle down some existing debt

Mortgage lenders prefer to work with applicants who aren’t already loaded with debt. If you’re juggling some existing credit card balances, whittling them down could work to your advantage, as that might make a lender more comfortable with the idea of writing you a massive loan.

Also, the less outstanding credit card debt you have, the more your credit score has the potential to improve. Plus, when you’re looking at taking on the expense of owning a home, the last thing you want is to have to keep up with pre-existing debt payments. So if you can approach homeownership from a place where you have very little debt, or better yet, none at all, it could make the process a lot less financially stressful.

It’s encouraging to see that so many Americans are looking to buy in 2024 despite today’s tough housing market conditions. Make the above moves to put yourself in the best position to become a homeowner in the new year.

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