Financial Preparation

  1. Review Your Credit Score: Check your credit score and address any discrepancies or issues.
  2. Reduce Debt: Pay down credit card balances, car loans, or other outstanding debts.
  3. Save for a Down Payment: Aim for at least 5-20% of the home price, depending on the loan type. We have preferred lenders to get you in touch with to help determine the best type of loan for your situation. 
  4. Save for Closing Costs: Budget for 2-5% of the home’s purchase price for closing costs.
  5. Build an Emergency Fund: Have three to six months’ worth of expenses saved. Please reach out to us so we can help direct you to our lender referral partners. 
  6. Get Pre-Approved: Meet with lenders to determine your budget and get a pre-approval letter.
  7. Understand Loan Options: Research loan types like FHA, VA, USDA, or conventional mortgages.
  8. Check for Assistance Programs: Look into first-time buyer grants or down payment assistance programs.Working with the right lender can help get you information on different types of programs available. 
  9. Set a Budget: Determine how much you’re comfortable spending monthly, including mortgage, taxes, insurance, and utilities.
  10. Avoid New Debt: Hold off on major purchases, like cars or furniture, before buying a home.

Research and Planning

  1. Research Local Markets: Study neighborhood trends, school ratings, and amenities.
  2. Define Priorities: List your must-haves (e.g., number of bedrooms, yard size) and nice-to-haves.
  3. Decide on Location: Narrow down your preferred areas based on commute, lifestyle, and affordability.
  4. Understand Market Conditions: Learn whether it’s a buyer’s or seller’s market and how that affects negotiations. This is what we are here for! Having an agent that is knowledgeable about the market will come in handy when you want to begin to view properties and write an offer. 
  5. Attend Open Houses: Visit open houses to get a feel for homes in your price range and what features you like. We are happy to go with you to the open houses as well as schedule private tours. 
  6. Consider Seasonal Trends: Understand that spring typically has more inventory, while winter may offer better deals.

Building a Team

  1. Hire a Real Estate Agent: Find a knowledgeable agent who knows your target market.
  2. Consult a Financial Advisor: Get advice if you’re unsure about how buying a home fits into your financial plan.
  3. Choose a Mortgage Lender: Shop around for competitive rates and terms. We have multiple lenders we recommend with different products to offer. 

Preparation and Organization

  1. Organize Financial Documents: Gather tax returns, W-2s, pay stubs, bank statements, and proof of assets.
  2. Understand the Homebuying Process: Familiarize yourself with steps like making an offer, inspections, and closing. 
  3. Plan for Moving Costs: Include expenses for movers, packing, and utility setup in your budget.
  4. Get Home Insurance Quotes: Research home insurance providers and costs.
  5. Prepare for Maintenance Costs: Set aside funds for ongoing repairs and homeownership expenses.
  6. Prepare for Emotional Ups and Downs: Homebuying can be stressful—be ready for setbacks, like losing out on bids.

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