Anytime we try something new it is overwhelming! Homeownership is probably one of the scariest things for any person. There are many steps to the process and at times it seems like a daunting task! Sorting through everything you need to do, and deciding if owning a home will be for you is probably the first place to start. I know that anytime I have started something I may be unfamiliar with I needed to arm myself with information.
Questions to Ask Yourself
There are so many questions to ask yourself when you begin to sort through this process in your head. Are you ready to give up a couple of activities that you maybe like to do? Are you prepared to have to fix things now instead of calling the landlord? What price range are you comfortable being in? Is your credit worthy of a bank loaning you money? Are you overwhelmed yet? I think you most likely get what I am trying to say. Each and every person has their own set of questions they need to ask themselves. Set aside a time where you can sit down and make a list of questions that you want answered so it’s easier for you to stay organized throughout this process.
Am I Going To Need a Realtor?
Anytime you are doing something new it is always a great idea to get a professional opinion. If only it were that easy with everything in life! When buying a home for the first time it is generally a good practice to speak with a realtor. You may be asking yourself right this very minute “Well how much is that going to cost me?” Nothing, nada, and zilch is exactly how much it will cost you to work with a realtor. The commission agents receive from selling a home is negotiated with the seller at the time the home is listed or put on the market. First time buyers do not need to worry about paying a commission to a Real Estate Brokerage or a Real Estate Agent. You WILL need to worry about this when you go to list the home you purchased and buy a new one, but that is a story for another day! If you are ready to start you search begin here.
Who Will Lend Me the Money
It’s a good idea to start thinking about your credit when you are considering buying a home. Speaking with a lender is extremely important because they are going to let you know what you can afford. You will only be immensely disappointed if you are looking in a price range that a lender feels you are unable to afford, so it is always a good practice to speak with a bank or a mortgage lender to see what you can afford first. A realtor will ask you this question when you begin working with them. I will tell you that for me when I ask it is not because I am trying to push you into a purchase, or get you to work with someone I know. It is generally because I want to find you the home that you are looking for. Without having a general idea of what you will be able to afford an agent will not be able to accomplish that goal to the best of their ability. Realtors work with many different lenders as well so if you don’t have a contact chances are your realtor will be able to point you in the right direction.
What Are My Out of Pocket Costs?
This is a question that you really want to make sure you have the answers to. Again speaking to a lender is going to let you know what kind of a down payment you will need or what loans are available where the down payment is low. There are also some other costs involved. Closing costs are definitely an expense that first time buyers should be aware of. They are incurred at the closing of your real estate transaction, which just means the final stage of your purchase. They can also be negotiated with sellers when you put your contract in to purchase as well. What does that mean, well sometimes you can get the seller to cover a portion of those closing costs. The title company should be able to give you an idea of what your closing costs will be once you have an accepted offer on a home. There are also inspections and appraisals that need to be paid for. Your lender should be able to give you an idea of what appraisal costs are and contacting a couple of inspection companies might not be a bad idea to see how much their inspections cost. A realtor will be able to guide you through this process as well, but if you aren’t ready to work with anyone and would like to know the expense in inspections I would suggest researching that on your own. As you can see knowing what the costs are up front will help you determine what you will need for your purchase.
These are just a few of the questions that those buying a home for the first time should ask. Buying a home is a process that is incredibly rewarding. If having somewhere to call your own is something that you have always dreamed of I would definitely start with these questions first. Get with the professionals in the business and speak with someone. Don’t be afraid to talk to a real estate agent. That is our job and what we are here for. If you meet a Realtor that doesn’t want to sit down with you and answer your questions than I would say that isn’t the person for you. Most of us get into this line of work because we love working with and helping people. I have included an infographic below for you to print out for your reference. Hopefully the 10 steps to Buying a Home will help you in your quest for homeownership. Click the download button to have it at your fingertips!
If you are ready to start your search for a new home click here!