First time homebuyers – the who, what, when, why, how, and where
Being a first time homebuyer can be both exhilarating and exciting as well as terrifying. Answering the who, what, when, why, how, and where before the real hunt begins can really take some of the stress off the process. Here are some of the things to know and consider before your search really begins.
Navigating this process with experts can simplify the process as well. Let 616 Realty help you as you get started on this amazing journey.
Determine the vibe
It is important to identify your wants and needs for a home. Maybe it is the location that is of foremost importance, maybe it is the architectural style, maybe all you care about is SPACE. Whatever your wants and needs are, you need to prioritize them when you are starting to think about purchasing your potential dream home. There is no getting around making compromises, but in the end, if you do some soul searching for what is MOST important, you will find joy in the home you eventually purchase.
Go window shopping
Once you have a pulse on what is most important to you, shop around. Find out if you realistically can afford a place in your neighborhood of choice. Maybe you only have the money for a fixer-upper in that neighborhood, so then you have to determine if your wish to have a “turn-key” property is more important than where your home is located. There are a lot of back and forths to go through, so the sooner you start thinking about them, the more time you have to consider what is truly important. Rushing a house purchase can lead to regrets, so the sooner you start meditating on what you value most, the better.
Identify your budget
Determining the approximate amount of money you want and can afford to spend is clearly important. Likewise, it will help you to determine how much you need to save for a down payment.
Using a mortgage calculator is a great first step. Talking to potential lenders will also help guide your next steps in the process.
Get your ducks in a row financially
Get your credit score, so you can determine ways to improve it to help increase your chances for pre-approval.
Make sure you have your paperwork collected, including:
- taxes for the past two years
- your W-2’s
- current bank statements
Identify lenders
All lenders aren’t created equally, so it is great to get some recommendations from people you know and trust. If you aren’t sure where to start, you can skip to the next step, and find a great agent, Agents typically have some connections with various lenders, and they can make a recommendation.
Research mortgages
All mortgages aren’t created equal, and since buying a home is likely to be one of the biggest purchases you could make, it is important you get as much information as possible. Talk to a couple lenders and see what they have to offer. Compare them, and ask questions. Check out this guide for analyzing the mortgage pros and cons.
Also, there are a lot of great grants and deals out there for first time home buyers, so make sure you have looked into them and determine if you qualify for these incentives!
Find an agent
Not only do you need an agent, but you need a great agent. At 616 Realty, we have hard-working, warm, open, honest, professional agents that will help you find and get your dream home. You need an agent who you connect with and who you feel would be a great partner for this very emotional and important journey.
Now that you have the 411 and have gotten your ducks in a row, you can start looking for a home in earnest. We would love to help you find the home of your dreams. Call us today, so we can get to work for you!