Let’s be honest: everyone loves home shopping. There’s something deeply comforting about searching for your future home. Thinking about the future is sort of a romantic world in which our ideals become reality and you can start to dream, until you jolt out of your trance, its 2pm, and you’re stuck at work (looking at real estate at work is the number 1 distraction below Facebook. Fact.). Heaving a sigh your thoughts return to work, but never really leave home buying. How do you start taking steps in the world of real estate? Most people get caught up in the “down payment” rather then pursuing easier means of home purchasing! In this brief blog, i’ll go over some first time home buying tips if you’re considering a new home purchase!
- Financial Planning. I hesitate to say “hire a financial planner” because its better to find advice for free (real estate blogs for instance…great resources). The first time home buying process should start a year from when you want to purchase. You need to have all your finances trackable, managed, and focused. When a mortgage lender looks at your personal finances and you haven’t done any “cleaning,” it makes it harder for them to secure your loan AND you can end up paying more interest! Save yourself a ton of headaches and start organizing early. It will save you $$$ in the long run!
- Hire a Realtor. The same way you need a financial plan, you need to create a real estate plan. A Realtor (at least any decent ones!) is a great resource for advice and planning. When I work with first time home buyers, we create a buying plan that includes purchase power and home qualities. If we know your going to be saving up a deposit for “X” amount of time, we can find a house that will be in your price range and have the features you want. Real estate is a long term business and we are in it with your for the long haul! Let us do our job and help with any questions you have!
- Don’t forget a credit check! Additionally, over financial planning, you must have your credit in order! A crucial part of mortgage lending is financial history, and you need to build a positive credit record in order to receive a loan. Credit Karma is a free service that will show you pending issues on your credit reports. There are also tons of resources that will help you repair damaged credit. Don’t wait to fix potential issues! We need to know immediately so we can start getting you ready to purchase your new home.
- Self Qualify. A crime many Realtors commit is not qualifying clients. Whenever I work with first time home buyers, I personally insure you’re ready to purchase. By doing a self evaluation, you can assess true desires and goals. You, your partner, your family, need to make the best decision for everyone, and that needs to come from the heart.
- Figure out the down payment first thing. The doozy. The question we all get asked a million times: How much down payment. Not to run over the same tracks again, but it depends on your plan! After you come up with a budget, and have been working towards the home purchase for 3 or 6 months, you won’t need to ask how much money to put down! Your financial plan will dictate what you can afford. As your Realtor, I will show you houses you can afford.
See how this works?