Dear Olivia,
I think I’m ready to buy my first home, but before I get the process going, I’m wondering, what can I do to improve my chances of finding the home that’s right for me?
Buying your first home is an exciting undertaking, but it can also be a little confusing and stressful. That’s why it’s so important to have a Realtor working for your best interests!
You’ve taken a great first step in seeking out information that will help you move things along more smoothly. Now it’s time to get yourself into the right mindset for searching for and buying your first home.
Here’s a few tips that will help you make the most of your home search…
Step 1: Get Pre-Qualified
The very first thing you should do as a prospective home buyer is to get pre-qualified for a loan.
A pre-qualification does a couple of very important things. First, it informs sellers that you are approved for a loan and that you’re serious about purchasing. Second, and perhaps more importantly, getting pre-qualified tells you what your budget can be.
For example, if you’ve been casually looking at homes priced between $175,000 and $200,000, but your pre-qualification is for $160,000, you know that you have to adjust your search for more affordable homes.
Just remember that just because you qualify for a certain amount doesn’t mean you should spend that much money. You’ll want your mortgage payment to be a comfortable amount that you can handle in addition to your other bills.
Step 2: Get Real About “Must Haves”
Photo by NeONBRAND on Unsplash
It’s rare that a first-time homebuyer (and most homebuyers, for that matter) find the perfect home. Unless you build a home to suit, you’re likely going to have to make some kind of compromises.
Maybe you want a home that has four bedrooms or has a large, fenced backyard. Those are great dreams to have, but the reality is that there might not be a four-bedroom home with a large, fenced backyard in the area you like or that’s in your budget.
The point is that by restricting yourself too much, you might miss out on a really great three-bedroom home that still has a nice yard! Use your “must-haves” as less of a strict guideline and more of a list of suggestions to give your Realtor so they can find properties that match – or at least come close.
The wider the net you cast, the more potential homes your Realtor will be able to show you, and the more likely you’ll find “the one.”
Step 3: Start Saving Sooner Rather Than Later
Though it’s often recommended that buyers have 20 percent to put down on a home, this just isn’t a possibility for many buyers. What’s more, there are many home loan programs that require far less of a down payment, with some, like VA loans, not requiring a down payment at all.
However, just because a 20 percent down payment isn’t required doesn’t mean you shouldn’t start saving up for your home sooner rather than later.
Putting any amount of money down will help reduce your monthly payments. Likewise, it’s important to save up and have an emergency fund, that way if something goes wrong (like a burst pipe this winter), you have money set aside to get it repaired.
Though it can be hard to set money aside, it is worth it in the end. And if you do that in combination with getting pre-qualified and being flexible with your must-haves, you’ll likely find the perfect home for you before you know it!
As always, if you have further questions, please don’t hesitate to send me a message or call me at 307-856-3999!