The truth of the matter is that buying a home can be incredibly exciting – especially your first home. Sure, you may be a little nervous, but if you play your cards right, you will wind up with a gorgeous starter home that you can be proud of. In order to play your cards right when you buy a home, you need to be sure that you have all you ducks lined up. Not only do you want to think about whether you are emotionally ready to purchase a home and make the leap from renter to homebuyer, but you also want to make sure that you are financially ready to purchase a home. Usually, you want to spend about six to eight months preparing everything. Once you have everything lined up, you will officially be able to proceed with the home buying process. Here are five things you should do before buying your first home.
- Get pre-approved for a loan – you want to make sure that you have the capital to put down an initial payment on the home. If you don’t have the capital, it will be difficult to scramble to put together the money you need. In order to get pre-approved, you may want to visit a few financial institutions to see what you are up against.
- Make sure that you are ready to make the leap from renter to homeowner – in some cases you may not be ready. If you are single, don’t have large financial obligations, and you are still figuring out what you want to do for a career, you may want to hold off on buying a home. However, if you have just gotten a new job and your salary is much higher – and you are ready to start a family – you may be equipped for homeownership.
- Understand the importance of working with an excellent realty company – for instance, the Roche Realty Group will be a big help when it comes to finding and purchasing your first home. Indeed, real estate agents can be excellent brokers, because they know the market and they know the going rates. Plus, they have the inside scoop for the best properties.
- Boost your credit score – another reason why you will need six to eight months to get all your ducks lined up is because you may need to boost your credit score. If your score is low, you will want to work with a financial advisor to scrub off any inconsistencies and raise your score.
- Make a list of all the financial obligations involved in buying a home – you will want there to be enough money after the down payment to cover all your move in fees. There will be closing fees, escrow fees and other fiscal commitments. If you don’t make this list, you may run short and not have a cushion. Having a cushion is incredibly important when you purchase a home. In the end, you don’t want to spend every penny you have on a new home – it is imperative to have a buffer zone.