Your first home is a big step, the process is gut wrenching. Don't let anyone tell you otherwise. With that in mind, I will try to make it as smooth as possible and take care of problems before they arise.
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First and foremost, check your credit. This will become important when you apply for a mortgage and, in general, you should know what your creditors are saying about you. Make sure there are no mistakes or reporting errors well in advance of attempting to get a mortgage. Feel free to contact me to discuss this in more detail.
Once you have your report, read it thoroughly. If there are any discrepancies contact the creditor and have the problem corrected immediately. If there is a negative, but accurate, claim on your report - an excessively late payment on a utility bill, for example - write a letter to the credit bureau explaining your side. This looks better to a lender than if you have made no attempt to explain yourself. Clearing up credit issues can take some time, with numerous phone calls and letters, so start early.
Before you start looking for your dream home, start the loan process. You want to get pre-approved, not just pre-qualified. Pre-qualifying is meaningless, Pre-approval however means you have full approval on a loan by a given lender up to a certain amount. You have the loan as long as you find a property within your pre-approved amount and it appraises for the price you are paying. Now, I can present you to a seller as not just ready and willing but as someone able to make the purchase. This is a VERY strong position to be in and will get your offer considered first.
With the financial wheels turning, things get easier. Now we will sit down and create a strategy to find a home that meets your needs. Be upfront with your needs and desires. Remember, when you start looking for a house, everyone you know becomes a real estate expert. You must trust your agent, we buy and sell many houses a month and while everyone wants to add their two cents, you should rely on the real experts, us.
After you have purchased your first home, you may think you will not be buying another home for a long long time but, in fact, statistics prove that you will sell this home and buy another sooner than you think! Don't try to get a lifetime house, look at a 4 - 7 year window only. Decide on what is a "must have", a "would like to have" and a "can live without for now".
Sit down and discuss these details with your agent. Talk about your lifestyle and what your plans are for the future. Will you be starting a family in this house? If so, you need to take this into consideration. Your sales associate will use this information to determine what types of homes, in what types of areas, to show you.
Remember, when it comes to how much home you can afford, you must be reasonable and willing to compromise. Spacious homes on large lots sound great, but in addition to larger monthly payments, they will also mean larger utility bills. You don't want to over extend yourself financially. Expect to give up some of your "would like to haves" in order to find a home that fits your "must haves" and your pocketbook.
You will be looking at many homes in different neighborhoods. After a while they may all seem to look alike. How do you find the one that is right for you? Careful exploration of the homes and the community is the answer.
Explore each neighborhood you are considering to determine the drivability and walk-ability of stores, schools and public transportation. Try to visit the areas at different times of the day to get a feel for the differences in noise and traffic levels. Of course if you are planning to raise a family, you will also want to look into the local school systems in more depth as well.
When you have decided to make an offer on a home, you agent will help you draft a purchase offer. If you would like certain items included in the purchase price, make sure they are stated in your offer. Don't assume you are getting all of the appliances in the kitchen and that great swing on the front porch.
When your offer is accepted, and a contract to buy has been signed, at a minimum, have the home inspected by a professional. A professional home inspector can find problems that you, and even the seller may not have noticed. He or she can also tell you what problems should be fixed before you buy, or at least bring them to your attention so you know what to expect.
Becoming a homeowner can be exciting and a bit scary, like any new adventure. Preparing in advance, enlisting professional help, and arming yourself with the information you need to make good decisions are the best ways to ensure a successful outcome.
Please feel free to contact me even if your not ready to purchase immediately. I may be able to show you how you can purchase your new home sooner than you think. | |
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