Buying a home is one of the biggest financial decisions most people will ever make, and it’s not a decision to take lightly. As a real estate agent, I recognize how important being prepared for the home buying process is. In this blog post, I’ll share the 5 First Steps to Prepare for Homeownership
Step 1: Determine Your Budget
Before you start looking at homes, it’s essential to determine your budget. As an agent myself, my recommendation is to work with a lender to pre-approve you for a mortgage/ loan. This will give you a clear understanding of what you can afford and make you a more competitive buyer. Keep in mind that your monthly mortgage payment should be no more than 28% of your gross monthly income.
Step 2: Check Your Credit Score
Your credit score is an important factor when it comes to getting approved for a mortgage. I advise my buyers to check their credit score and address any errors or outstanding debts to improve their chances of getting approved. You can check your credit score for free from each of the three major credit bureaus.
Step 3: Save for a Down Payment and Closing Costs
I recommend my buyers plan to save for a down payment of at least 20% of the purchase price to avoid private mortgage insurance (PMI). You should also factor in closing costs, which can add up to 2-5% of the home’s purchase price. It’s a good idea to start saving for these costs early on in the home buying process.
Step 4: Get Pre-Approved for a Mortgage
My advice to buyer’s is to get your pre-approval of your mortgage/loan before you start the house hunt. This will give you a better idea of what you can afford and make you a more competitive buyer. I also recommend shopping around for the best rates + terms from different lenders, or agents usually have their go-to lender’s who they love and trust.
Step 5: Find the Right Real Estate Agent
As a real estate agent myself, I know how crucial it is to find the right agent to help you through the home buying process. I recommend looking for an agent who is both trust worthy and forthcoming with information. You should also look for an agent who is a good communicator and will keep you informed every step of the way.
Overall, buying a home is a significant investment, and it’s very important that you’re prepared before taking the plunge. By following these 5 First Steps to Prepare for Homeownership, you’ll be in a much better position to make informed decisions and find the home of your dreams.
If you have any questions or would like to learn more about buying a home, feel free to contact me!
