So you have made the decision that you want to buy a home, but you don't know where to start. Here are a few tips to for you to consider to prepare you for home ownership.
Seek out a lender
The first thing that you should do is speak with a lender. Whether you are working with a bank, credit union or mortgage broker you need to get qualified and/or approved for your financing. Your lender will also pull a credit report to see if you have any credit issues. If there are any credit issues you will have time to start improving your credit score for when the time comes for you to lock in your loan rate and terms.
People often ask “what is the difference between being qualified or approved”? Being qualified means, based on the income and expenses you have provided to a lender, this is basically how much they feel you can afford for financing. Being approved means that you have gone through underwriting; your funding is secured. In today’s market, being approved is becoming more common, also, when it is time to put in your offer an offer that has approved financing is a stronger offer. The buyer knows that you are ready to go and they can proceed with final negotiations and get you to closing.
Take a home buyers class
When buying a home you are taking a very expensive and complicated risk. To help you better understand the process take the time to educate yourself. Friends, family, your lender, attorney and of course your real estate agent can be resources to you. Another idea is to take a first-time home buyers class. Educating yourself as much as you can will help you make the best decision for your new home.
You may even want to consider taking a few home repair classes. Unless you are buying a newly built home where everything is all shiny, chances are you are going to have to make some repairs as soon as you move into your home. Learning a few little things, like how to fix a leaky faucet or install a new lock can save you time and money. Get to know your neighborhood hardware store owner, not only can they help you find the right hammer but they can maybe even show you how to use it.
Hire a real estate agent
Friends, family and other acquaintances can be a great source in helping you find the right real estate agent that best represents you. I suggest you interview a minimum of three agents. You can ask questions such as, how many client are they currently working with, what type of training they have, do they specialize in anything specific. Get references and take the time to actually call them to see how their home buying/selling experience was with the agent.
Finding an agent that is right for you can be taxing. Make sure that they fit your personality.
Start shopping
Consider the neighborhood in which you are living. Obviously your real estate agent will be a main source for seeking your new home. There are things that your agent can’t show you and it would be in your best interest to do some research on your own. There is much more to buying a house than just looking at four walls and a roof.
Consider contacting the police department to learn about crime in the area. Look at neighborhoods where you see lots of homes for sale, is there a reason that every street on the block is for sale? If you have children, research the school, actually take time to visit with the principals. Drive around the area during a weekend , when many people might be out in the yard, are their kids for your children to play with, are people taking care of their homes? You can find little things out about who potentially can be your neighbor. I know it might sound creepy but look at the inside of a garage; is it stacked high with junk? Is their lawn mowed? Do they have a lot of junk laying around?
Of course you will want to look at homes, consider all your needs and wants when looking. Your agent can help you narrow your search to homes that really fit your dreams.
Be patient and don’t rush. You will find the home that is best for you.
Leslie Mueller, Realtor
Keller Williams Preferred Realty
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