Whether you are purchasing your first home or your fifth, deciding to buy a home is a huge decision. There are so many factors that go into buying a home such as credit, cost, and desired neighborhood. Clients can sometimes get overwhelmed or discouraged before the process even begins. When deciding to buy a home here are a few things to consider:
- Get pre-approved for your home loan: This step is the most important. Imagine looking at a home and after falling in love and imagining your family living there, you find out that it is out of your price rnge. Speaking with a lender before contacting an agent will save you from the heartache of having to look elsewhere once your heart is set on the home of your “dreams.”
- Don’t open any new credit accounts: It is not wise to open any new credit cards or buy any large ticket items three to six months prior to purchasing a new home. Lenders won’t to see that you are reliable in an effort to get you the best loan possible, however, if you have too much debt that may lower the amount you get approved for or cancel your chances of getting a loan all together.
- Pay off as much debt as possible: Owning a home is expensive. Paying down or eliminating debt will free up money so that you can save for added expenses such as a down payment, closing costs, or maintenance. Creating a budget is a way to make sure that you keep track of everything coming and going out and you can identify places to save.
- Stalk your desired neighborhood: Many homeowners have become distraught after buying their dream home only to find out that the neighborhood was not for them. Drive through the neighborhood during different times of the day (morning, noon, or night) as well on weekends. If possible talk to some of the residents. Drive the commute to get a full assessment of what you new drive would be like. Locate grocery stores, shopping malls, schools. This will save you from having buyers remorse down the line.
- Have a list of general must haves: There is a difference between a must have and a want. Often times buyers go in with a full list of both wants and must haves and get confused and frustrated when they are not able to find or afford everything on their list. Number of beds, baths, and square footage should be on the must have list. Granite countertops, stainless steel appliances, and hardwood floors may be able to be moved to the wants category.
