Square 1 – Tips to Get Started

You have bought many important things in your life, for example: cars, college degrees, vacations, mutual funds/stocks, maybe even an engagement or wedding ring. None of these purchases compare to buying your first home. A home is the biggest financial purchase most people ever make.

It’s exciting to know that someday soon you will be unpacking boxes in a place that you own, can eventually sell for a profit, and in the mean while can do whatever you want to the place!

Before you start jumping up and down with excitement make sure you are a good candidate for making a home purchase:

*Do you plan to live in the home for at least two years? – In a cooling real estate market your profit margin may be less than stellar if you try to sell the home before it has appreciated much.
*How is your credit? Credit is essential. Most problems people have with their credit are fixable, but repairing credit scores takes time. If possible, fix your credit issues before buying a home.
*Can you afford the type of mortgage you’ll need for the type of home you want? Sure the house down the street is perfect, but can you afford it? Get approved for a loan and if possible sit down in person with a loan officer in your local area and ask a lot of questions.
*Are you ready for homeownership? Sure it sounds great, but do you know who gets called when the toilet breaks or the roof is leaking? YOU DO! You will now be responsible for the maintenance and repair of your property. You call the contractors and you write them the checks.

So now you are ready to begin looking for a house. Your time, effort and energy are important to you. You do not want to spend countless hours trying to find a place to no avail. If you do the following before you begin seriously looking for a home it will save you time, money and effort

*Get approved for a loan – Why? You will know what you can afford, what your payments will be for different prices and what type of down payment and closing costs you will need to get the best deal financially.

*Meet with a Realtor® - Get your own representation. Your agent will represent only you (not the seller) and the seller will pay their commission. It’s a win – win for you. They will be happy to tell you what types of homes you get for your loan, how the market is currently behaving and most importantly how the sale process works from start to finish. If the person you meet with is too much of a salesman or you don’t see eye to eye, thank them for their time and find someone else – There is no obligation to work with them just because they talked to you for ½ an hour! Having your own agent from the beginning will make things much easier.

With those two things in place you are ready to go, go, go! Happy House hunting!