The Lowdown on Buying Your First Home.
So you’re ready to buy your first home.
…or are you?
I guarantee you I’m the last person that’ll talk you out of it, however, navigating the real estate market can be overwhelming, especially for first-time buyers. Fortunately for you, I understand the importance and complexity of this step and am here to guide you through the process. Here are some essential steps to consider when buying your first home:
1. Assess Your Finances
Before embarking on your home buying journey, it's crucial to evaluate your financial situation. What are you paying currently in rent? Can you afford to flex that number a bit?Take a close look at your savings, credit score, and monthly budget. Understanding where you stand financially will help you determine how much you can afford to spend on a home and secure a mortgage. Seek advice from a financial advisor or mortgage broker to get a clear picture of your financial capabilities. Need a recommendation for a great financial professional? Don’t worry, I gotcha covered there too.
2. Determine Your Needs and Wants
Consider what you are looking for in a home and create a list of your needs and wants. Identify the number of bedrooms and bathrooms you’d like, the desired location, and any specific features or amenities. I always like to take these “wants” and split them into “Need,” “Want,” and “Would Be Nice” columns. There is no such thing as “The Perfect House,” and knowing which characteristics we can scratch first is always a huge help.
3. Find the Right Real Estate Agent
If you’re reading this, you’re already a step ahead of the game! Working with an experienced real estate agent is invaluable when buying your first home. Look for an agent who understands your needs, is knowledgeable about the market, and has a proven track record. They will be your trusted advisor and guide you through the entire process, from house-hunting to closing the deal, and (in my case) far beyond. I always say for better or worse during the home buying process, your agent becomes everything from your best friend to your therapist. Choose wisely!
4. Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage is essential before house-hunting. There’s nothing worse than touring a home, falling in love, only to find out it’s way above budget. In addition to that, you need a pre-approval letter to submit an offer, so it always is smart to have one handy and ready to go in the event of a hot listing that you want to offer on. Work with a reputable lender who will review your financial information, listen to your needs, and work with you to get you the best possible outcome for you and your family.
5. Start House-Hunting!
Now comes the exciting part – exploring potential homes! Armed with your pre-approval letter and a dedicated real estate agent, begin visiting properties that pique your interest. Take your time to thoroughly inspect each house, envisioning yourself living there. Don't hesitate to ask questions and request additional information about the properties you are interested in. Avoid touring TOO many homes, especially as a first time home buyer, because that usually leads to confusion (not to mention can be really overwhelming). With my first time buyers, I like to vet a group of listings very thoroughly and then pick 3-5 to show them. 9 times out of 10 one of those end up being the perfect fit!
6. Make an Offer and Negotiate
Once you've found your dream home, it's time to make an offer! Your agent will mainly take it from here, but know that the hard part is over, and it’s almost time to say “Home Sweet Home!”
