So you’ve decided—you’re tired of throwing money away on rent, you’ve found a place you want to plant your roots, and you’re ready to make the biggest investment of your life thus far.
It’s finally time to take the leap from tenant to homeowner.
Now you might be asking yourself, what do I do next?
It’s no secret that buying a home can be a complicated process. But while complex, it can also be exciting and fulfilling if you go into it knowing what to expect and feeling confident in your actions.
Here are a few tips to get you started:
- Know your credit score. In order to qualify for a loan, your credit score has to meet certain standards. In addition to whether you have paid your bills on time, your credit score reflects how much of your credit you are using relative to your limit. Mortgage lenders typically want to see that you are using less than a third of your credit. If you need to raise your credit score, it may take months to get it to where it needs to be in order to apply for a mortgage loan.
- Evaluate your monthly cash flow. Track your spending for a couple of months before entering the home-buying process. See how much money you have left after each month, or whether you are essentially living paycheck to paycheck. This will tell you whether you’re in a good position financially to make a down payment as a home, as well as to make monthly payments on your mortgage.
- Determine what you can afford. Have a budget in mind when you start looking at homes. Consider not only a down payment and monthly payments, but also property taxes, insurance, closing costs and anticipated improvements.
- Make a wish-list. Write down what you do and do not want in a neighborhood and home. However, understand that a perfect situation that meets all of your desires is rare. Be ready to compromise and be flexible.
- Invest in an up-and-coming area: Many first-time homeowners do not live forever in the first house they purchase. That’s why it’s important to think about the resale value of your home over a period of time. Think of your home as an investment, and treat it accordingly.
- Don’t stop at the first house you tour. The excitement of buying a new home may cloud your judgment as to which is really the right home for you. Carefully consider all of your options before jumping on the first home you come across. However, with that being said…
- Once you’ve found the one, move quickly. When you do find that home that feels right, you’ll want to act fast to make sure someone doesn’t get there first.
- Get an inspection: Though it may look perfect on the outside, you need to have your potential new home inspected by an expert to make sure there are no serious underlying problems that would prevent you from wanting to purchase the house.
- Make a reasonable offer, but not an offensive one. You will want to make an offer that falls within your budget, but do not make it so low that it is insulting to the seller. Work with your Realtor to help you decide the best offering price for a particular home.
- Six back, relax and enjoy your new home! You’ve done it! Give yourself a pat on the back for becoming a first-time homeowner.
Are you a first-time home buyer in the Auburn-Opelika area? Ryan Roberts would be happy to help you! He’ll stick with you through every step of the process to make your first home buying experience a simple and successful one.
Call Ryan today at 334-750-9872, or email Ryan at [email protected]! #FirstTimeBuyer #HomesAuburn #RyanRoberts #AuburnRealEstate #OpelikaRealEstate #AuburnRealtor #OpelikaRealtor
