Set a budget
This seems simple, but you would be surprised how many people DON’T start with this step. The commitment of a home is scary but buying a home you can financially afford lessens that fear and potential long-term financial anxiety. If you bank with Bank of America, I suggest logging into their app and looking back at your financial planning tool. You can search expenses and splurges by month or category to help determine what you actually spend your money on. Another great app anyone can download (for free) is the Dave Ramsey EveryDollar App. You pre-plan every dollar you make and spend. You can add income as you earn it or plan in advance if you have a set salary. Then you add all of your recurring bills like utilities, insurances, and rent. Lastly, you budget your living and entertainment expenses using categories like groceries, dinners out, clothing, sporting and entertainment, holiday expenses, and savings. The idea is simple, you plan out every dollar you earn. Whatever is left over is budgeted into the savings or re-paying of debt categories. Once you clearly see where and how you spend your money, you can determine how much you have to put towards a mortgage and home maintenance.
Talk with a lender
A mortgage lender is a person or company who loans money towards the purchase of a home. Talking to a lender before house hunting gives you a realistic price range to focus on. You don’t want to waste you, or your Realtor’s time falling in love with a home that you can’t afford. Also, many sellers will not entertain a contract offer without having a fiance pre-approval letter. A lender is going to look at your income to debt ratio, credit report, and your housing budget. Not only will they tell you what loan amount you qualify for, but a good lender will take your budget into consideration and recommend a purchase price range to help you stay in your spending comfort zone. If you don’t qualify for a loan yet, a lender can give you advice on steps to take to improve your financial standings. Not all credit is treated equal, and no credit can be just as bad as “bad credit”. Want to see where you stand financially in the home buying process? Click here to start the pre-approval process with Matt Gurnow of Home Team Equity. Not only have I personally used Matt for my own home purchases, but I have sent many happy clients his way over the years.
Find a Realtor
Realtors are knowledgeable on market trends and real estate law; we are here to help and protect you. Whether you are buying your first home, a For Sale By Owner, or a bank owned property– having that support comes at no cost to you. SELLERS PAY REALTOR COMMISSIONS; even the buyer’s agent. Think of it as a finder’s fee for bringing the seller a buyer. It costs you nothing to take advantage of the help, services, convenience, and protection of a Realtor— so make sure you use one. If you don’t have a Realtor in mind, ask your friends if they can recommend one. Most Realtors work on referrals because home buying can be such a personal and emotional process. If you are in the Volusia County (Florida) area, I would be happy to help you personally! But I can also help you find a reliable Realtor anywhere in the WORLD. If you would like me to contact you about starting the home buying process or would like help being connected to a reliable and trustworthy Realtor, please CLICK HERE.
Make a wish list
After you find a Realtor and have a price range that fits your budget comfortably, it’s time to start dreaming. Make two lists side-by-side, label one side MUST HAVES and one side WISH LIST. Must haves are your non-negotiables, it’s very important to not confuse something that you REALLY WANT with something you HAVE to have. For example, if you have school age children and you are not willing to switch their schools, then school zones would be a Must Have item. If you REALLY WANT a pool, but would settle for a home without one– if it was nice enough, then a pool is a Wish List item and not a Must Have. Share your Must Haves and your Wish List with your Realtor. This will save precious time by weeding out homes that don’t fit your needs.
Preview Houses
Your Realtor will probably start the process off by sending you some digital listings via email. Most customer reports will include details about the property, an area map, and a few photos. It’s important to read the property descriptions, view the photos, and check the home’s location out on a map. Veto any properties that you know you are not interested in but be cautious. Don’t pass up seeing a home just because the description and pictures are underwhelming. Not all Realtors are world class photographers or writers. Sometimes photos are deceiving and descriptions are boring. If you don’t see or read something that turns you off to the property, take your Realtor’s advice and go see it if they encourage you to do so.
Visit Properties
Make a list of addresses that you would like to see with your agent. I suggest picking your top three potentials. A pretty home, that is fairly priced will probably not last long so schedule to see homes that you’re interested in as soon as possible. Remember, agents work nights and weekends but sometimes we need to schedule a showing around the sellers’ schedule as well. Your agent will then schedule appointments at the properties you want to see. And now you start the House Hunting stage! Check back for more details and tips on what to look for or expect when house hunting. You can also follow us on Facebook HERE.
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