- Make sure you are READY
Making a commit to OWN a home is a big deal! It is one that takes a lot of planning, courage and maintenance. Many young people buy a home that they can afford and that fits their needs for RIGHT NOW – which is OK. Just make sure when doing so you are making plans for the future, you want to be able to make a return on this investment – if/when you decide to sell in 3-5 years. Make sure you think all the details over and over – and then maybe one more time!
- Know your finances
Buying a home will most likely be the largest purchase you will ever make in your life. So, in order to do that – you definitely need to understand and know your finances. Your salary, current expenses and spending habits will be a huge factor once you meet with your lender. Remember, your mortgage won’t be your only expense when buying a home – there will be costs like fees, taxes, insurance, etc. Know that you can handle the unexpected costs.
- Credit/Savings
Whether you graduated college with gifted grad money from your Aunt Pearl or you have been working since you turned 18 and built your savings by eating boxed ramen; your lender will need to understand your financial standing. You need to know how much you have or need to save and what your credit is looking like. Either way, a good lender should help you plan so everything is aligned. A lot of young people think that credit is a scary thing, when in retrospect, if you pay attention and have some responsibility – having more credit history is never a bad thing. This tip definitely goes hand and hand with Tip #2, so the bottom line is, you will need to get serious about your MONEY & CREDIT in order to even start the process of buying your first home.
- Get that Approval Letter
As stated before, all the financial advice you have read so far can all be something a GOOD lender can advise you with more detail. Some people may think that they are more than ready to buy a home when in reality they may be 3, 6 or maybe 12 months out from even applying for that loan. Having a lender that you can confide in and will be honest with you is going to be more helpful in the long run. Make sure you don’t settle, there will be different lender institutions that can offer different loans options, rates and even types of assistance for certain incomes, etc. Don’t rush the process – do what is best for your situation and make that clear to who you choose for the lending process. We can refer you to some great lenders!
- Trust your Agent
Being a first-time home buyer can be very overwhelming. Having someone who can help guide you throughout the process is something that can make or break whether you purchase YOUR ideal FIRST HOME. We have proper training, knowledge and resources you most likely do NOT have. We have the experience to negotiate all the logistics you probably have never even heard of until you get to the offer or the closing processes. Just remember, you aren’t paying a buyer’s agent commission! We will be taking care of the big stresses for you until the day you receive your keys!