Home buying tips

On the hunt for a new place to call home? Below I share some insight and tips on how to get started. Whether you are just starting this process as a first time home buyer or you are an experienced buyer, never feel lost, I will help guide you through the entire process. 

- Work on your credit
Having a higher credit score will help you get a lower interest loan which ultimately means you can get more home for your money. Don't fear if your credit is not where you want it to be. There are a ton of programs out there offering support. 

- Save for a down payment
No you do not have to put 20% down on a home. If you are a first time home buyer you could put as low as 3% down when purchasing your home. However, you do need to keep in mind there will be other expenses along the way. For example, paying for a home inspection. 

- Speak to a few lenders
I recommend speaking with a few lenders to narrow down the best fit. Some offer different interest rates and programs but ultimately, make sure your lender is someone you trust and work well with. They are a huge part of the process and you want to make sure you are making the best decision for you!

- Get Pre Approved
Once you find the best lender for you, getting a pre-approval is a must. Not only will this help you define your budget it is crucial in today's market. Sellers most of the time will not consider your offer unless you have a pre-approval. It shows you are qualified to finance the home which gives the sellers piece of mind knowing the deal won't fall through. Having this pre-approval in hand before looking for homes is key especially with how quickly homes are going under contract in this market. 

- Understand your budget
Understanding your budget is so important. You might qualify for a certain amount but you need to consider all the costs involved. You don't want to get into a situation where most of your income ends up going towards your home. Remember your mortgage (principal and interest) isn't the only expense. You may also have homeowners insurance, HOA fees, and property taxes included. Also consider maintenance; who will cut your lawn or repair your dishwasher if it were to break? The bottom line, consider more than just your monthly mortgage payment when creating your home budget. 

- Set money aside for closing costs
Closing costs will total 2% to 5% of the home purchase price. This includes anything from origination costs, rate lock fees, title fees, surveys, appraisals, etc.  

- Work with a Realtor®
As a buyer, having a Realtor costs you nothing. So why not leave the dirty work for your agent. Working with a real estate agent ultimately saves you time and stress. Your trusted real estate agent knows the market and will be able to provide advise and guidance not only when searching for the perfect home but most importantly when it comes to putting in an offer and negotiating. 

- Be confident when submitting an offer
Having confidence is key! The market is moving quickly meaning you have to act quickly as well. This can lead to buyers remorse if you are not confident when submitting an offer. Make sure you have your list of must haves and know what you can live without. Not being confident can also lead to your offer not being accepted. Homes are going under contract way over asking price and if you don't have the confidence to compete with other offers you may miss out. Another example would be having confidence that you love and want the home regardless of what the inspection report might find. Many offers being submitted today are waiving the option period. This means you do not have time to get an inspection and back out of the contract only losing your option money. 

If you have any questions over these steps, I am always here to help and provide further insight.