When there’s a house that’s caught your eye, but you’re not exactly sure how the whole home buying process works, what is the first professional organization that springs to mind as being a reliable source for assistance? We’d like to think that it’s Bungalo®; our all-in-one buying experience has helped thousands of people find the home of their dreams, making what is often the biggest financial decision of their lives a whole lot easier than they anticipated.

But if you have only a working knowledge of real estate, your first thought is probably the National Association of Realtors. Founded in 1908 in Chicago and originally known as the National Association of Real Estate Exchanges, the National Association of Realtors has accumulated a considerable amount of name recognition over the years; that has a tendency to happen when you’re over 100 years old. So much so, the terms “real estate agent” and “Realtor” are frequently used interchangeably (they’re actually different, but not quite as different as a Realtor might claim).

But what if we told you that you didn’t need a Realtor or buyer’s agent to become a home buyer? In fact, what if going through a real estate agent was a step that you didn’t need to take and could actually make the buying process longer, more expensive, and more stressful than it needed to be?

Bungalo’s helps to eliminate these stressors with home buying made easy. With transparent pricing and ultra-convenient self tours that you can schedule through the Bungalo app, you can buy and peruse a home on your schedule and without any pressure. That equals less stress and more satisfaction.

What is a Realtor?
A Realtor is a real estate agent who is a registered member of the National Association of Realtors. Among the largest trade associations in the United States and with a membership base of over 1.3 million, becoming a Realtor has a lot of prestige. In some ways, it’s considered to be the pinnacle of success as a listing agent; the National Association of Realtors has a tremendous amount of name recognition.

Realtors are also sworn to a certain code of ethics as they pertain to their home buyer clients. There are 17 in all, but more than anything else, they are required to “put the interest of buyers and sellers ahead of their own and treat all parties honestly.”

Additionally, a Realtor must pass a state licensing exam, attend continuing education courses throughout the year and pass a code of ethics test once every four years to keep their “Realtor” status.

But beyond that, being a Realtor is a lot of sizzle, very little in the way of steak. That’s because real estate agents are also required to become licensed in the state (or states) that they’re selling real estate, and even before that, they typically need to complete a certain number of hours of pre-licensing training. How many hours that actually is can vary — often significantly.

Another area where real estate agents and Realtors are a lot alike? What they charge. And in both cases, it isn’t chump change, especially in comparison to Bungalo (it doesn’t cost you anything when you buy through us).

How much does it cost to work with a real estate agent or Realtor?
Generally speaking, both real estate agents and Realtors — whether as a buyer’s agent or seller’s agent — make a living on a commission basis. This means that whatever a house winds up selling for, a portion of the amount goes to the listing agent. What that percentage is can vary, but it tends to hover right around between 3% and 6%. But if you’re hiring an agent with several years of experience, it may be more than this.

But let’s go with 6% for the sake of argument. According to the most recent figures available from the National Association of Realtors, the median price for a residential property these days is approximately $360,000. So, if a house were to sell for that amount, the listing agent would stand to earn $21,600. If there is both a seller’s agent and a buyer’s agent, they may split the difference to total 6%.

Not only that but a portion of the list price factors in the commissions of the respective agents involved. So, the $360,000 house you have your eye on may actually be $338,400. Think of what you could do with an additional $21,600. For that price, that’s enough to buy a preowned vehicle. Or to purchase a boat for summer getaways. That amount could also be used as a down payment since the typical down payment these days is between 3% and 5% of the list price. 

Now, some may contend that the buyer really has nothing to worry about in this respect since frequently, the real estate agent’s share is paid for by the seller. But this isn’t always the case. Sellers are under no obligation to pay for the time and expertise of the buyer’s agent, especially if you as the buyer are the one who hired them in the first place. That’s why they’re called a “buyer’s agent” — they work on behalf of the person purchasing.

Another potential rationale for working with a buyer’s agent is their willingness to negotiate. In other words, their 6% commission isn’t written in stone, so you may be able to talk them down to a smaller percentage. But seriously, who wants to deal with that? Broaching the subject alone is difficult, never mind the actual haggling process itself. And even if they agree to take less, it may not be by as much as you’d like.

While it is true that the seller is usually the one who winds up paying the Realtor for their services, that isn’t always the case. Buyers may be the ones who are ultimately on the hook, not even realizing that’s the case until later on, sometimes at the closing table.

This means there can be a lot of open-ended questions as to who pays for whom, how the list price was arrived at, and what all your closing costs will be should you move forward with the transaction.

Finally, there’s the stress factor of working with a Realtor. While a Realtor is obligated to abide by the NAR’s code of ethics and always be mindful of their client’s best interests, it’s common to feel a subtle (or obvious) pressure as a buyer since the agent stands to earn more money when a deal is struck. For such a consequential financial decision like buying a home, the last thing you want to feel is stress or intimidation. But that’s a common complaint among those who have had a negative experience with a Realtor, or any other real estate agent, and can manifest itself in a number of ways when working with you either before, during or in preparation for the buying process itself.

It’s a different story when you buy direct through Bungalo. When you buy direct, you’re the one who’s in charge, from the city you want to live in, to your price point and how you want to arrange to see the home, be it in person or entirely online. Plus, since Bungalo offers a “no-hassle” price, you won’t have to worry about negotiation, whether it’s with another buyer or a listing agent. Bungalo accepts the list price on a first-come, first-serve basis. And since you’re not using an agent, you’re saving thousands in fees. We even give you back 1.5% of your prospective home’s purchase price, which can be put toward closing costs.

So now that you know a little more as to why it pays to go it solo when you’re buying a home, here’s how to buy a house without a Realtor. Adhering to these steps will help ensure you perform your necessary due diligence, where all the t’s are crossed and i’s dotted.

Step 1: Seek out preapproval

Preapproval and the receipt of a preapproval letter from a lender accomplishes several things. It shows the seller that you have the financial means to buy a house and it establishes guard rails as to how much you can afford to spend, which will be dictated by your mortgage provider. But to adequately determine this amount, your mortgage lender will need a few things from you. Typically, they’ll request to see your W-2 tax forms from the previous two years, proof of employment, paychecks (two most recent previous pay periods), a copy of your credit report, and a statement of funds from your bank. This is in addition to the basics like your current home address, social security number, and the like. They may ask for more, but these are a few of the particulars you can expect they’ll request.

Step 2: Consider hiring an attorney
As their title suggests, a real estate attorney specializes in home buying. They can talk you through any questions you might have regarding paperwork, disclosure statements, title records, and more. You may need to hire them to assist with the closing process (some states require a real estate attorney to be at the closing table), but the cost will likely be a flat fee (as opposed to a commission, as in the case of a real estate agent). They may also be able to offer insight on additional research you may want to conduct regarding the home buying process or may do it on your behalf.

This is another reason why it can pay to buy through Bungalo. When you go with Bungalo’s preferred title company, you’ll spend less in closing costs and will have fewer papers to sign. But if you want to go through your own title company, that works for us, too. The ball is in your court.

Step 3: Research, research, and research some more
The internet is teeming with resources that can help you not only find hidden gems but find out everything about them, such as their square footage, number of rooms, when the home was built, and its public tax history. Listings will also tell you who’s selling the property, meaning if a listing agent is involved or if it’s for sale by owner (FSBO). If it’s a FSBO, it lets you know that the price isn’t inflated as a result of the agent’s fee and is coming directly from the seller.

You can be confident that when you shop through Bungalo, all the information that you’re hoping to see on the listing will be there. But if for some strange reason it’s not included, help is just one phone call away. Let us know, and we’ll get to the bottom of what you need to know before you commit to making an offer. Speaking of which, that brings us to the next step.

Step 4: Make an offer
When you go about the buying process on your own, this is traditionally the most complex part of it all. That’s because there are a bunch of components that need to be identified to ensure that the offer is genuine and that all the details are included in the letter, which is also frequently called a contract to purchase. This includes the home’s address, earnest money, a projected closing date, and for how long the offer is good for. Of all the steps, this may be the one in which it pays to consult with a real estate attorney.

When you buy directly through Bungalo, you may be surprised by how simple this portion of the buying process is, especially if this isn’t the first time you’ve been through it. Before you get to this stage, though, you will need to be preapproved. This is for the benefit of all parties involved, including yourself. Additionally, you won’t have to wait too long to get an answer as to whether your offer was accepted. You should receive word either way within a single business day. But you can always call us if you want to know where things are.

Step 5: Contact a home inspector

While a home inspection is typically done before you reach this stage, hiring a home inspector is appropriate because the home inspector can determine if anything needs to be fixed before reaching the finalization stage. This may ultimately affect what the final price will be at the closing table.

One thing you can be confident about by buying through Bungalo is we’ve done our legwork on the properties we advertise. The home inspector professionals we hand select go over each house with a fine-tooth comb. We don’t assign the “Bungalo Certified” seal until we know for certain it’s safe to own and it’s ready to dwell in. It’s all backed by our one-year home warranty.

Step 6: Finalization

Last but not least is the closing. Here, all closing costs are paid for, including who will pay for what (i.e. underwriting fees, title-related expenses), and issues relating to the home inspection are addressed. The mortgage lender or mortgage officer may be in attendance at closing, including the real estate attorney of the seller and/or yours as the buyer. A final walkthrough of the house is another important step before the keys are officially handed over.

Buying direct through Bungalo can not only reduce your closing costs but can also make the closing process more seamless. We also offer 90-day post-close protection, which means that if anything is not working as it should be — from a running toilet to a leaking faucet — we’ll cover it and fix whatever needs tightening or replacing quickly.

Buying a house is a process, with or without a Realtor or real estate agent. But it’s a simpler one when you choose Bungalo. Contact us today to get started and take a look at some of our previous articles for more insight on home buying and selling.

This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Bungalo always encourages you to reach out to an advisor regarding your own situation.

Are you ready to start your home buying journey? Buying a house is an exciting new chapter for anyone, but it can seem overwhelming — especially if it’s your first time making such a large purchase. Some questions you should consider are:

• Are you ready for a home loan?
• What is a mortgage and how do you get preapproved?
• How do you shop for the right real estate?

Thankfully, the process of buying can be straightforward if you map out a plan and iron out the steps and details required to become an official homeowner. To help streamline the process, we’ve compiled some tips and recommendations that will help set you up for success.

Are you ready for a home loan?

Before you start looking for a home loan, take an inventory of your financial health. To ensure a successful home buying experience, you’ll need to verify what kind of home you’re able to both purchase and manage ongoing expenses for. Here are four questions you need to answer to build your financial groundwork:

• How is your credit score? Make sure that you have good credit that shows that you have a solid history of paying bills on time, consistently. If you don’t have that, you should work on strengthening your credit to improve your credit history. Otherwise, you probably won’t be able to qualify for a home loan.
• Do you have savings? As a general rule, you need enough money to pay up-front home buying costs (ex. down payment and closing costs) and additional money for an emergency, just-in-case fund.
• What is your budget? Based on your answers to the previous two questions, you can begin to build a picture of what your home buying budget will look like and if you’ll need a loan. Your budget should account for all of your monthly spending (utilities, student debt, groceries, etc.) and determine how much you could spend per month on an additional mortgage payment.
• Can you commit to a long-term mortgage loan? The average mortgage term ranges from 15 to 30 years. Based on your financial situation, you must be fully prepared to become a homeowner before acquiring a home loan.

Once you have a financial outline of what you have and what you want for your home buying process, you can start considering home loans.

What is the best option for first-time homebuyers?

If you qualify as a first-time homebuyer, according to U.S. Department of Housing and Urban Development (HUD) standards, definitely take the time to explore the benefits you may have while purchasing a home. This could include access to additional assistance programs, down payment assistance loans, and grants.

Research all of your potential advantages as a first-time homebuyer. We recommend that you also check HUD’s resource list, which can help you discover grant funds marked for first-time buyers. You can also check your state’s programs, which may offer financial assistance with down payments, closing costs, and additional expenses. Your eligibility is usually determined by income or a home’s purchase price, so make sure to check with your state’s unique requirements.

Getting mortgage preapproval

Getting mortgage pre-approval is a crucial part of getting the best mortgage rates and finding a great deal as a homebuyer.

Mortgage preapproval is a process that confirms the type and amount of loan that lenders decide you qualify for when buying a home. Lenders evaluate your financial situation, including your income, assets, and credit score to then determine your loan amount and interest rate. Through this process, homebuyers can essentially shop and apply for loans that best suit their financial needs. It can also help buyers figure out backup options if their lender instead offers preapproval with conditions or denies their application for preapproval.

Once you’ve received your lender’s mortgage preapproval letter, besides securing a loan that fits your needs, you can also use it to show sellers that you’re committed to the home buying process. Oftentimes, home sellers request that buyers come with a mortgage preapproval letter as a prerequisite.

Preapproval vs. prequalification

Preapproval and prequalification aren’t the same processes and shouldn’t be used interchangeably. While preapproval requires a mortgage lender to process a full application with supporting documentation, prequalification is a much less in-depth process where you only receive an estimated loan amount.

Although a mortgage prequalification estimate may be helpful for your own financial budgeting plans, it doesn’t provide a guaranteed loan amount and can’t be used as financial proof for sellers.

How long does mortgage preapproval take?

The application process to get a mortgage preapproval determination is a relatively quick process that can take anywhere between one to 10 days, depending on the lender. Most lenders will have their turnaround time estimate listed on their websites.

You’ll want to get a mortgage preapproval right before you start looking for houses as it will show sellers that you’re serious about buying a house. If you start looking for houses with a mortgage preapproval letter already, your offers may have a competitive edge over other offers. It can also help you know what to expect from your mortgage, which will help you select potential future homes.

An important reminder for homebuyers is that applying for preapproval requires lenders to review your credit report, which counts as a “hard inquiry.” These can lower your credit score, but most preapproval applications will not hurt your credit score in the long run. As a best practice, FICO recommends that homebuyers apply for preapprovals within a 30-day time span.

Don’t forget that mortgage preapprovals do have an expiration date if you don’t advance to the next step of final approval. The expiration date will vary between lenders, so make sure you reach out to them to verify how long your preapproval is good for. If the expiration date is approaching and you haven’t chosen a home to buy, you can also reach out to the lender for a renewal request.

Understanding your mortgage payment and more

Your mortgage is a long-term loan that can allow you to buy a home now and then pay installments to your lender over a span of 15 to 30 years — depending on your specific mortgage plan.

These payments will not only repay the principal loan amount, but also the additional interest determined by your interest rate. The total mortgage payment amount you commit to should be based on your home buying budget and the total costs of purchasing your new home.

However, when considering mortgages, you must be aware that a home’s list price isn’t necessarily the price that the seller hopes to sell for. The amount that the seller accepts may be higher, depending on the competitiveness of the market, or lower, if the buyer can negotiate a lower price. It’s during these conversations between sellers and buyers that a house will land on its official purchase price, as agreed upon by both parties. This final purchase price is what you should determine your mortgage payment on.

You may see the following line items on a potential mortgage:

• Principal: This is the primary balance due to the lender by the borrower.
• Interest: Percentage of principal that is added to the repayment.
• Escrow balance: Portion set aside by a third party to pay taxes and insurance on the homeowner’s behalf. Only appears if the homebuyer requires an escrow account.
• Taxes: Property tax payments determined by government agencies.
• Insurance: Usually referring to hazard or homeowners insurance.

What’s a good size down payment?

A down payment is a percentage of a house’s purchase price that a buyer pays upfront when closing on a home. Typically, the best down payment is about 20% of the purchase price. However, that may not be doable for every home buyer.

If a borrower is unable to contribute a 20% down payment, they will have to take out private mortgage insurance. This will increase the monthly mortgage payment but allow you to pay a lower down payment.

Some lenders require borrowers to use an escrow account if they are unable to put down a 20% payment. An escrow account protects both the buyer and seller in real estate transactions. When buyers submit their monthly payments to lenders, a portion goes into an escrow account to pay additional expenses, such as taxes or homeowners insurance.

Shopping for the right real estate

How do you narrow down the right location, prices, and — ultimately — property for your home buying journey?

If you’ve followed our previous financial rundown above, then you’ll already be on the right track because you’ll know exactly what you can afford. Once you have a concrete home buying budget, you’ll be able to start choosing what locations and neighborhoods fit your budget and home needs.

Finding the right neighborhood

Make a list of everything you want in your future home’s neighborhood and then highlight the items that are “needs.” You have to be realistic about whether a neighborhood will truly have everything you want and still be in your price range, but buying a home is also a long-term commitment — you shouldn’t have to settle.

Once you’ve decided on what areas you want your home to be in (perhaps based on school zones, community playgrounds, proximity to public transportation, etc.), you can focus on finding specific homes for sale that fit your criteria.

Finding the right home

To streamline the home buying process, it’s critical that you know exactly what you want from your future home. Are you looking for a specific number of beds and bedrooms? Do you need a large back or front yard?

Prospective buyers should also always make a list of what they don’t want. This can quickly narrow down options and save you time on homes that just don’t fit your home needs or budget. This can also help you avoid homes that have everything you want except one critical detail that can demoralize you during the home buying journey.

Creating a game plan

Once you know what areas and types of homes you want, it’s time to start shopping.

It can be easy to feel overwhelmed by the pace that potential houses will go on and leave the market, especially in “hot” areas where multiple buyers compete for the same homes. However, you should always check out multiple homes before selecting an official one to put down an offer for. This is your chance to walk around, talk to neighbors and decide whether this is really the right home for you. Take advantage of the searching period and don’t rush the buying process.

Meanwhile, on the opposite side of the spectrum, you also shouldn’t drag out the sales process, especially if you’ve found a home that fits all of your needs.

Understanding the sales process

When you’ve found your potential forever home, it’s time to start the sales process. Below are the steps that you must follow to purchase a home:

• Make an offer or bid: Take a look at your budget and determine the amount you would like to offer for the home. Make sure the offer is competitive with the current market. The seller will either accept your offer, provide a counteroffer or decline.
• Go to contract: If your offer is accepted, you’ll go to contract and you’ll provide a good-faith deposit to the seller to show that you’re committed to buying. The seller will then put the house in escrow (usually 30 days) where it’s removed from the market while it’s inspected.
• Schedule a home inspection: Have a trained professional inspect the home and verify that it’s in good condition. This may reveal potential dealbreakers, which might make you want to rescind your offer.
• Close or move on: This is where you finally commit to closing the house or rescinding your offer and continuing your home search. If you choose to close on the home, this is when you finalize your mortgage loan with your lender.

Bungalo® can help you buy your forever home

Buying a home is a complicated process and Bungalo helps shoppers through every step of the process: from finding home options to touring to making an offer and, finally, closing. Our all-in-one approach demystifies the home buying journey to help you avoid the confusion and difficulties of the traditional methods.

With our interactive platform, homebuyers can feel secure in their search as Bungalo inspects and renovates every home available with a team of dedicated experts. Every home that we showcase is Bungalo certified to verify that they’re in the best condition for you, from top-to-bottom.

Learn more about us and how we certify the perfect homes for you here. If you’re interested in reading more about our story, clients, and home recommendations, check out our blog.

This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Bungalo always encourages you to reach out to an advisor regarding your own situation.

While it’s exciting to start the search for a new home, it’s likely you’ve got a few burning questions. First and foremost, you’re probably wondering: How long is this going to take?

There’s obviously no 100% perfect answer to that question because every house search and every homebuyer is different, but there are some calculations you can do.

You can break the home buying journey into steps and time each one out. This won’t just give you a rough estimate of what to expect, it will also help you figure out where to take time-saving real estate shortcuts and how to plan ahead for a quick and painless process.

Looking for a new home is undoubtedly exciting, but it’s not the kind of experience you want to drag on for months or years on end. With the right approach, you can maximize your chances of getting the home of your dreams in a hurry.

How long does it take to buy a house from start to finish?

Breaking the house search down into steps is the best way to time it out. Seeing how many days, weeks, or months each step tends to take will help you take in the scope of the journey.

These parts tend to consist of:

1. Mortgage preapproval
2. Shopping around, touring and inspecting houses
3. Submitting your offer and finalizing financing
4. Inspection and closing

Mortgage preapproval

Once you’re closing in on the home of your dreams, you’ll want to have reassurances that a lender will give you the mortgage you need to buy that house. That’s why you should start the homebuying process by applying for mortgage preapproval.

The home loan preapproval process itself, from submitting your documents to getting the preapproval letter, may take a week or less and is a critical step to understanding loan options and your total budget. There is some prep work that comes first, however. You’ll have to get your financial paperwork in order, from pay stubs and bank statements to tax documents, to demonstrate your income.

You should also bear in mind that the lenders you work with will likely run a credit check to verify your credit history, which can temporarily affect your credit score.

The real length of time needed to get a mortgage preapproval could be said to include the months you spend before the loan process. During this time, you should be saving up a good bank balance for closing costs and monthly mortgage payment expenses and building your credit score to make banks more likely to approve your mortgage application and to give you a favorable upper limit for your mortgage.

With the preapproval letter in hand, you’ll likely have a limited time in which to carry out the rest of your home search, typically between two to three months. Of course, if you need more time, you can ask the bank to extend the offer or apply again.

Shopping around, touring and inspecting houses

This is the heart of the homebuying process — looking at listings for homes and touring the ones that seem like good matches. It’s also the hardest step to predict the length of. After all, you could find a wonderful home the first open house you attend — or you could look for months without really connecting with any of the homes on the housing market.

It pays to not run for a proverbial bus. If you don’t find a house you like on your first few tours, don’t feel the need to settle for something inferior. Buying a home is a huge move, and it’s worth a little extra waiting to get the right place for you.

Working with the right partners can really help you speed this step up without having to compromise. Get access to great listings of houses in your chosen area, and you’ve already dispensed with some potentially wasted days or weeks.

If you’ve entered with a strong idea of what kind of home you’d like to live in, narrowing down the size, area, and asking price range, you’re on the right track for a quicker home search. This lets you narrow your focus to a few homes, making it easier to choose the perfect one.

Submitting your offer and finalizing financing

Making an offer for a home can be a very short step indeed. In fact, if your initial offer is accepted by the homeowner, this stage of the journey takes barely any time at all. Negotiations take more time, especially in a seller’s real estate market where there tends to be more than one prospective buyer competing for the same property.

Going back and forth for days and weeks is a hallmark of the classic homebuying process. It should be noted that there are alternatives, however. You can leave the bidding wars and hassle behind by creating an online offer in minutes when purchasing one of Bungalo’s new or renovated homes. Working with an all-in-one provider such as Bungalo is a way to get through this step smoothly, without wheeling and dealing, because it’s not about being the highest bidder on a Bungalo home but being the first bidder who pre-qualifies for the list price.

Once you have an accepted offer, it’s time to finalize your mortgage loan. Remember the first step, when you got a preapproval letter? That will make this process far easier, as you already have a mortgage lender that has committed to providing you with a certain amount of funding for your home purchase.

In a traditional sale, this step and the next overlap, as throughout the closing process, the lender will continue to perform due diligence when underwriting your home loan and setting your interest rate and payment structure.

Inspection and closing

The little steps associated with closing on a home tend to add up to one to two months of activity. This is the escrow period when your offer has been accepted but you haven’t yet put pen to paper and closed on the home. You’ll be asked to set aside “earnest money,” a sum that proves you are a serious buyer.

During this step, you and your mortgage lender will make all the necessary checks to ensure the home is sound and there are no problems that will either affect the sale price or make you reconsider the whole transaction.

These home inspection and due diligence times differ based on your lender and loan type. Not every purchase is made with a conventional loan, after all.

The extra requirements and disclosures needed for a Federal Housing Administration (FHA) loan or a Veterans Administration (VA) loan can add some time to this step. Some loan products will call for a monthly mortgage insurance payment at first.

Once you’ve waited out the rounds of disclosure, verification, and home inspection is another step you may be able to significantly cut down by seeking an alternative homebuying process. A pre-inspected home listed through Bungalo, for instance, comes with an easy closing checklist to guide you to the closing date.

Once the closing comes, you can celebrate. It’s time to sign the loan documents and move into your new house.

Tips to speed the home search and get to your closing date

Taking each step of the home buying process just a little quicker can add up to big overall time savings. Slight changes to the way you’re doing things could feel minor while you’re doing them, but the results can be impressive.

Try these tips to get into the home of your dreams faster.

Saving and planning

So maybe you’re not quite ready to start the clock on your serious home search, but do you think it might be time soon? In that case, why not start setting aside money and making a list of must-haves for your new home?

Everything you think of in advance is one less thing to surprise you while you’re making a serious search, and each dollar saved will help you deal with expenses from loan application fees to closing costs.

The earlier you start working on and monitoring your credit score, the better shape you can be in when it’s time for banks to start the credit check process.

Fast home loan processing

Preapproval is your friend when you’re buying a home. Getting a preapproval letter lets you focus your search by informing you how much home you can afford. It also simplifies closing, demonstrating that there is a lender ready to extend you a mortgage.

Even with preapproval, there will be extra due diligence around closing time. With that said, it’s clearly beneficial to have the solid bedrock of a preapproval letter when you’re in final negotiations.

It’s always better to know the details of your financial situation sooner, rather than later. If your mortgage approval efforts end in rejection, this is just a sign that you need to work on your financial picture before trying again. Seeing where you stand as soon as possible lets the home search go smoothly.

Finding an alternative home buying approach

No matter how diligent you are about cutting down on time spent on the home buying journey, a few steps tend to just take time. For example, the inspections and negotiations during the escrow period are hard to shorten.

With that said, the whole home buying process has changed recently, at least for some buyers. Working with Bungalo is a way to take some of the complexities out of real estate, which is a great way to shorten the path between Point A, setting out on your search, and Point B, moving in.

By turning the winding path to homeownership into a more direct route, working with Bungalo could be the key to shortening your house search.

How long does it take to buy a house with an easy, technology-enabled platform?

To really demonstrate the potential of the Bungalo approach to home buying and real estate, you can run through the four stages of purchase again, this time thinking about how this easy, technology-enabled method handles them.

• Mortgage preapproval: Getting a preapproval letter from a home lender is still the same with Bungalo as it is for any other home buying method. The difference lies in what this preapproval means. Later on, your letter will enable you to close quickly on a home, with no fuss or extended negotiation.
• Shopping around: The listings of Bungalo homes are easy to browse by state and city. When it comes time to tour the house in question, it’s on your schedule. Any day of the week, from 8 a.m. to 8 p.m., you’re in.
• Finalizing your offer: You submit your offer online with Bungalo. The process is simplified and takes minutes. You are no longer obligated to negotiate with a seller or participate in a long bidding war with other buyers. No matter what the housing market conditions are like, everyone gets a fair market price offer.
• Closing: The closing process has been turned into an exact science with Bungalo. Just follow a simple checklist and you can be sure your purchase is on the right track. Before you know it, you’ll be unpacking boxes in your new house.

Once you’ve considered the length of the home buying process, and the little things that can slow you down along the way, the value of this revolutionized real estate path becomes clear.

A lot of the delays of the conventional model are tied to ambiguity: Will this offer be enough? What will turn up during the home inspection? By cutting out these unclear steps, you can get to your closing date more quickly, at a purchase price that makes sense to you.

The homes listed by Bungalo are protected for 90 days post-close. This trust-forward process is designed to provide peace of mind during the closing period and beyond. Each home has been inspected, and they’re all Bungalo Certified to ensure their quality. If there are any surprises that pop up during the 90-day period, we’ve got you covered.

Every home search is different, but some are simpler than others. Get started on yours today, and you’ll be moving in before you know it.

This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Bungalo always encourages you to reach out to an advisor regarding your own situation.

If you’re looking to start your next big adventure by moving to Tampa, Florida, you’ll have plenty of things to learn. For example, if you’re new to the state, you may want to know about the sunshine it’s famous for — while long-time Floridians will be more focused on how Tampa compares to other parts of the state.

No matter where you’re coming from, one of the first things you’ll want to research is how to budget for your move. The average rent in Tampa, Florida is one important benchmark — so today, we’ll take a closer look at this number and how it will impact your house-hunt (or apartment-hunt).

What is the average rent in Tampa, FL?

According to the Tampa Bay Times, rent has been going up in the city — and it shows no signs of slowing down. After a review of data from across the Tampa metro area, local news station WTSP reported that a one-bedroom Tampa apartment costs renters between $1,000 and $2,000 per month.

Naturally, the more square footage you want, the higher the average rent will climb. That means houses are generally more expensive to rent than apartments. For example, the Low Income Housing Coalition reports the annual wage needed to afford real estate based on the number of bedrooms:

• One-bedroom: $41,600

• Two-bedroom: $50,840

• Three-bedroom: $66,040

• Four-bedroom: $81,120

The Coalition also reports that, in order to afford the rent for a one-bedroom home, you would need to work 93 hours at a minimum wage job (which pays $8.56/hour in Florida).

However, a report by the National Association of Realtors found that homeownership in the Tampa metro area is more affordable than nationally: The home price to rent ratio is 18.4 vs. 24.1. This is something to keep in mind if you decide you’d rather buy a home in Tampa than rent.

Cost of living in Tampa

The real estate market isn’t the only thing you need to consider as a renter. You’ll also want to do a little research on the total cost of living in Tampa, Florida. This information acts as a benchmark, giving you something to compare against the average rent.

Here’s a look at how much it costs to live in Tampa, according to Payscale:

• Energy: $194.99 monthly
• Gas: $2.77 per gallon
• Loaf of bread: $3.33
• Doctor visit: $108.83
• Dentist visit: $93.49

Overall, according to the Living Wage Calculator by MIT, two working adults with two children would need to make about $87,000 before taxes to live comfortably in Tampa, Florida. Meanwhile, a single adult with no children would need to make about $31,400.

Keep in mind that the cost of living in Tampa also depends on the type of property you choose. For example, a one-bedroom apartment would cost less to heat and cool than a two-story house. Luckily, you have plenty of options in the Tampa metro area — especially if you’d like to be a buyer instead of a renter.

Here are a few property types to consider:

• Studio apartment
• One-bedroom apartment
• Multi-bedroom apartment
• Townhome
• Loft
• Condo
• Duplex/Multi-family home
• Single-family home

Pros and cons of renting in Tampa

Even once you’ve navigated the Tampa real estate market, found the perfect rental property, fought through all the competition for housing and calculated the median rent, you still have challenges to face. On the other hand, you also have benefits that a homeowner may not.

Let’s take a closer look:

Pros

• Flexibility: When renting, you can easily move to a different apartment or part of the city whenever your rental agreement allows. You’re not tied to any one piece of real estate long-term.

• Accessibility: For many, renting is a more accessible option than owning because it doesn’t come with closing costs, down payments and other upfront fees. A renter also doesn’t need to secure a mortgage and worry about long-term interest rates.

• Responsibility: Not very handy around the house? No problem. Your landlord is usually responsible for maintenance and repairs on a rental apartment or other property.

Cons

• Control: A renter is at a disadvantage when it comes to costs. Your landlord could increase monthly fees in an effort to keep up with the real estate market and average rent — and they’re free to do this when a lease ends or with a 15-day notice to month-to-month tenants, according to iPropertyManagement. There’s also no legal limit on how much a Florida landlord can raise the rent.

• Availability: Depending on the specific part of Tampa you’re targeting; you may have trouble finding available rental housing.

• Investment: When you rent an apartment, you’re not making a long term investment or building equity, as you would when buying a house. You might even spend more money in the long run, depending on the length of your tenancy and the amount of your rent.

Although there are benefits and drawbacks to being a renter, the truth is that your best choice will depend on two things: your financial situation and housing availability. Your financial situation is all up to you, but you have a little more control over housing availability — as long as you’re willing to look at different areas in Tampa.

Discover your Tampa area

Your little slice of heaven in Tampa, Florida is out there waiting for you — you just have to know where to look. Start by narrowing down your ideal surroundings: City or suburbs?

Downtown vibes

If it’s downtown vibes you’re looking for, look for your Tampa apartment or property in these areas:

Ybor City

According to Ybor City Online, this area is the only National Historic Landmark District on Florida’s west coast. You’ll see condos, townhomes, bungalows and lofts — not to mention charming aesthetics and vibrant nightlife.

Downtown Tampa

Visit Tampa Bay calls this area the home of “modern marvels” and “authentic treasures” alike. Here, you’ll find condos and highrises — and as a business district, you’ll be close to plenty of work opportunities, too.

Suburban paradise

Looking for something a little slower? These areas might be more your speed:

North Tampa

Apartments, condos, townhomes and both new and remodeled single-family housing options are all available here. Plus, you’ll have easy access to Busch Gardens Tampa Bay and next-door waterpark Adventure Island.

Brandon

If you want real estate with a little more space, head out to Brandon. You’ll find more single-family homes here — and if you’re lucky, maybe even a farmhouse with acreage.

Come home to Tampa with Bungalo®

Want to come home to Tampa, Florida? As a renter, you’ll have plenty of work to do — but with Bungalo, finding your dream property is as easy as searching through our Tampa listings. All our homes are Bungalo Certified, meaning you won’t have to worry about pricey problems with wiring, construction and more. We make it easy to be a happy homeowner instead of a frazzled renter.

If you’re ready to be a Floridian, start browsing our Tampa homes today.