Buying a home is a big milestone, but it's essential to set solid groundwork before you start! Let’s dive into a few important steps to help you prepare for the process ahead.
Before you start scrolling through listings, take a close look at your finances. Check your credit score, calculate your monthly budget, and factor in how much you can comfortably afford for a monthly mortgage payment. It’s also a good idea to save for additional costs like earnest money, inspections, appraisals, out of pocket closing costs and moving expenses like utility deposits, moving supplies and a moving truck!
Before a single home is ever toured, a pre-approval needs to be obtained. Looking for a lender and unsure where to turn? Many banks have a mortgage lending team ready to help. Local Realtors (if you already have one, but if not-we’ll get there!) can also be a great resource, as most have worked with many different lenders and companies. A mortgage loan pre-approval letter not only shows sellers that you’re an able buyer, but it also helps you understand how much house you can realistically afford. No one likes falling in love with a house only to find out it’s out of budget! Lenders will explore different loan options and provide your best option after considering all factors. Once that pre-approval letter is in hand, it’s house hunting time!
Create a list of your needs and wants. Think about things like your ideal location, home size, number of bedrooms and bathrooms, and any special features that are important to you. While everyone’s list is different, features frequently mentioned are things like central air, a fenced-in yard, main floor laundry or a garage/outbuilding space. This can stir up some interesting conversations! Talking about these things now will help narrow the search, make your time effective and focus on properties that fit. Most importantly, this leads to buyers making smart decisions. When the time comes to write that offer, it’ll be done with confidence!
Your Realtor; the ultimate matchmaker! Partnering with the right agent can make all the difference. Choosing an agent native to your area of interest will ensure you have a local expert on your team! Knowing the community and its resources can be critical in a seamless and satisfying buying experience. Be sure to choose the agent that is experienced, attentive and communicative. Share that list of needs and wants. Talk timeline and goals. Your agent needs to show understanding in what motivates you to buy, and the level of urgency or patience in finding the right match. They’ll then have the ability to guide you through the process and negotiate with your best interest in mind. The right agent will give expert advice to ensure you’re making informed decisions every step of the way. Your agent should not only be a great listener and a strong communicator, but also someone you’re comfortable around, as you’ll likely be spending much time together!
Do your homework and get familiar with the local market! That local agent will be a strong resource for this. Ask about average home prices, average days on the market, and local trends. Buyers that don’t fully understand the market they’re shopping often miss opportunities on competitive listings. The market fluctuates and may look very different from the last time you searched, knowing the current temperature of the market will give you a valuable advantage and help you stay competitive.
The home-buying process can include hiccups and hurdles. It will be important to stay patient and be adaptable. While things don’t always go as planned, the end result will be just as rewarding!
In conclusion, buying a home is more than just browsing listings; it's about persistence and patience. Taking the time to prepare can truly make a difference. Your new address is waiting, you’re just a few steps away from calling it home!
The views, information, or opinions expressed in this article are solely those of the author and do not necessarily represent the views of Citizens State Bank and its affiliates, and Citizens State Bank is not responsible for and does not verify the accuracy of any information contained in this article or items hyperlinked within. This is for informational purposes and is no way intended to provide legal advice.