How to Prepare For Buying a Home in 2025

Are you planning to buy a home in 2025? Here are our top 5 tips for getting prepared to buy: 

Tip #1: Interview Agents Before Choosing One!

Did you know that 71% of homebuyers only talk to one agent? Interviewing multiple agents can help you find someone with local market expertise who is also a good personal fit. Here are 16 questions to ask during an interview with a potential agent. Ready to get started with an introduction? Head to the Buy tab to learn more!

Tip #2: Understand Your Buyer’s Representation Agreement

With the recent NAR settlement, there are new guidelines regarding disclosing commissions and how buyer’s agents are compensated. You may need to sign a Buyer's Representation Agreement now before viewing a home with an agent. Make sure to sit down with the agent and understand exactly what you're committing to. A standard commission rate is 2-3% of the purchase price.

Tip #3: Explore Down Payment Assistance (DPA) Programs

Many first-time homebuyers may not realize that there are local and national Down Payment Assistance programs available. These programs can offer grants or low-interest loans to cover your down payment and even closing costs. On average, 70% of all homes for sale are eligible for a down payment assistance program - price limits typically range from $200,000-$700,000. Some of these programs have homebuyer course requirements, so start early to maximize your savings. Go to the Tools tab in your Foyer app to see which DPA programs you qualify for. 

Tip #4: Don’t Try to Time The Market

Trying to predict interest rate movements can be tricky, and often, counterproductive. Instead of focusing solely on timing, consider the overall economic outlook for 2025: It's looking good - inflation is cooling, the job market remains strong, and we're anticipating another Federal rate cut. Rather than waiting for the “perfect” moment, prioritize finding a home that meets your needs and fits the budget that you have been planning for.

Tip #5: Plan for Additional Costs

Beyond the down payment, closing costs, and inspections, budget for moving expenses, ongoing home maintenance, and other unforeseen expenses. Having a financial cushion will help you avoid surprises and ensure you’re fully prepared for homeownership. Maximize your cushion by opting for a lower down payment percentage if you can swing it. Maximize your savings by switching to Foyer!

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