First Time Home Buyers: Quick Tips to Prepare for the Process

Posted by Giovanna Tonzillo on Tuesday, August 11th, 2020 at 1:39pm

It’s August of 2020, interest rates are at an absolute all time low - now is the time. Let’s start prepping!

If you’re like many other first time buyers - you have no idea where to start or how to prepare and that’s OK. Real Estate Brokers exist solely for that reason!

Below is a list of tips & tricks that will help you set yourself up to become a strong buyer.

1. Needs VS Wants

Before you even start looking at homes - write down a list of absolute musts (location, square footage, # of beds/ baths, etc). Reference that list when you start viewing homes so you don’t get caught up touring homes that don’t have the amenities you can’t live without.

2. Make a Budget

Set a budget that reflects your current income & debt. Don't stretch yourself too thin - you don't want to be in the position of being a new homeowner, losing sleep because you don't know how you'll pay the mortgage next month. There are plenty of homes that will come onto the market that you will love AND be in your price range.

3. Save 20% for a Deposit

If you want to keep monthly payments at a minimum and avoid the high costs associated with private mortgage insurance - you’re looking at, at least 20% of the purchase price down. Start saving!

4. Keep an Eye on Your Credit Score

Your credit score almost directly reflects what interest rate will be available to you. It also tells a lender how trustworthy you are when it comes to borrowing. For the best borrowing opportunities try to keep your score in the mid-600’s or higher.

5. Be Realistic

After looking at your credit score, you might realize that your original budget isn’t obtainable. Scale it back to what you’re comfortable with - overspending IS avoidable. Don’t get caught up looking at houses that just simply aren’t in your price range.

6. Get a Home Inspection

Home inspections can make or break a deal. Be sure to know EXACTLY what you’re getting BEFORE you buy it. No matter how much you love a house - make sure what you see is what you are getting - without any hidden surprises.

7. Get Pre-Approved

This step is huge considering it will show both sellers and real estate agents that you are a serious buyer. Pre-approvals solidify the maximum amount a lender is willing to grant you. They are only valid for a limited time so leave this step until the end when you are sure you’re ready to buy.

8. Work with a Professional

You might think that you don’t want to spend the money but trust me - It’s always worth it. Hiring an experienced pro can save you a ton of stress and confusion. You want someone that knows the ins and outs of the market you’re seeking to buy in. We'll take on any burdens that come with purchasing a home: searching, negotiations, paperwork, etc. to make this experience as fun & efficient for you as possible.

9. Make Room for Surprises

Like most things in life - nothing is guaranteed. Make sure you leave some wiggle room for unexpected costs like sudden repairs and surprise closing fees. 

 

Contact me today to start your home-buying process today! I look forward to working with you :)

Best,

Giovanna

 

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