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Every year has its own challenges when it comes to buying homes. Though 2021 has just started, a few clear signs show what the new year will bring in terms of the housing market. If you are going to buy a home this year, there are a few things you’ll need to know to be successful.

The first thing that buyers will need to buy a home in 2021 is good credit. With markets becoming somewhat less stable and lenders looking to minimize their risks, those borrowers who have good credit will be those most likely to get loans. Picking up a conventional loan will almost certainly require a borrower to have a credit score in the mid-700s, while those who are looking towards first-time buyer programs or federal programs will need to be in the mid-600s. Debt-to-asset ratios will also play a big role, as most lenders are looking for a DTI of somewhere below thirty percent.

Buyers will need to be incredibly competitive in a market that still seems to be driver primarily by the sellers. With reduced inventory and sellers who are more educated than ever, this means that more buyers are going to have to go above the asking price to get into a home. This is especially true in the ‘starter home’ segment of the market. Many buyers will also find themselves competing with rental companies to get into homes that may have once had far less competition.

Finally, buyers will need to be flexible. Increased competition and rising prices mean that buyers will have to compromise on what they want to get what they need. Though going for a dream house is always tempting, the buyers who will be the most successful this year are those who can focus more on the things they absolutely have to have in a home.

Buying a home in 2021 won’t be easy, but it will be possible. With a good credit score, the right attitude, and a willingness to be competitive, buyers will still be able to get into the market. Though the future can always change, planning for the market as it is today is a good way to ensure that you’ll buy a home.