Prepared by Rebecca Burton and Patricia Davis
Are you a 1st time home buyer? Are you confused about how you need to “get ready” for your first home buying experience?
First Steps: DO NOT go look for a home. You need to find a mortgage advisor and Realtor to guide you through the process and make sure you are represented professionally. Most Realtors can provide a list of mortgage advisors, and most mortgage advisors have a list of Realtors they know. Next step is getting a “real” assessment of your finances and buying power. Typically, a mortgage advisor or your personal financial advisor can help you with this process. Once you know YOUR buying power, your Realtor can make appointments to show you homes on the market. Your Realtor now represents YOU during the upcoming negotiation process to ensure the best outcome with a minimum of stress.
1st – Assuming you are approved for a loan and therefore know your buying power, have you discussed with your partner or family what you feel comfortable spending per month?
- Just because you are approved for a certain loan amount does not mean you should set out to spend up to the limit from the outset. If you start at the top of your budget, you will have little room to expand your offer range for that ‘dream’ home or choose a home with those great bones that needs a bit of fixing. Leave room for expansion!
- Bottom Line: everyone in a household has different expectations. Discuss what kind of lifestyle you want your home to support, and what portion of your monthly net you are willing to allocate to support that vision.
2nd – Have you and your partner/family reviewed and prioritized features you want in your home?
- Few of us have unlimited funds, so getting on the same page about which home features are priorities gets you much closer to your dream home and within budget. Which features do you agree are important? Is it price? Do you have children and require good school districts? What kinds of pets do you currently have or plan to have in your home – does your “dream” home support those needs?
3rd – Long term plans – Does your home support your future needs?
- Most people do NOT like to move, especially if you have developed extensive roots in a community and do not want to give up your neighborhood. So, does your home grow with you? Can you expand as your family grows? Does the layout support reduced mobility in your elder years? Does your career demand flexibility and a home that can be sold quickly without much work or loss of investment? Did you find a home that meets most of your needs with “a few” changes?
