Typically, the most buyers are out and about buying homes in the Spring market.  The Spring market around here starts as early as February.  There are already homes coming on the market and you could be the “early bird” buyer who gets the home!

Here’s how to get started:

Get Pre-Approved for a Loan

• You must get pre-approved BEFORE you get too far into looking at homes (Don’t mix this up with pre-qualified!). Talk with a good lender NOW! I can connect you with fabulous lenders with access to multiple loan programs.
• Sellers like to work with buyers who are already pre-approved for a loan. It means you’re a serious buyer and able to make a purchase.

Once you’re pre-approved for a loan by a lender, you will know:

• how much house you can afford,
• what your down payment requirements are (you can buy a home with as little as 3% down nowadays), and
•  what your monthly mortgage payments could be as well as expected closing costs.

To get this done, meet with a mortgage lender who can get you up to speed on different loan products and their requirements (such as credit score and down payment), and also give you an overview of current interest rates and their future outlook.

The better your financial picture, the better the rate and loan … it’s that simple. However, many people are approved for more than they want to spend every month, so be sure to understand the correlation between your price point and your monthly payment. 

Tell your lender that you are interested in understanding what price range to be looking in based on the monthly payments you feel comfortable with.

Get Your Finances and Budget In Order

• Collect necessary financial documents.  Your lender will need to look over your W2′s or 1099′s, bank statements, proof of current income, copies of tax returns, and brokerage account statements. Save them in a folder so you can quickly apply for a loan.
• Don’t do anything now that could damage your credit score. Postpone making any big purchases like a car or rack up a slew of credit card debt.
• Make sure you keep saving money and curtail your spending so you have enough for a down payment, closing costs, and more. Owning a home requires extra money for maintenance costs, utilities, condo fees, etc.
• Go through your budget to determine what you can pay (and feel comfortable paying) per month toward your new home. Focus more on your monthly budget and desired payments and less on the purchase price for right now.

Explore and Window Shop

Before buying a home, you need to understand your needs and wants. Take these steps to help you learn what you like and don’t like so you’re all set (and confident!) when it comes time for serious house hunting and the rush of putting in an offer.

1. Really think hard about your day-to-day life and what you want and need in your home. It helps to make a list of your must-haves (i.e., three bedrooms or a master suite) and your deal breakers (i.e., no eat-in kitchen or no parking space).
2.  Get to know the neighborhoods in which you are considering buying. Go there for your normal activities such as coffee with friends or grocery shopping. Try some local restaurants and see what it’s like there at night. You should even take your kids to the different playgrounds. Your broker can also give you guidance on other neighborhoods that are more affordable but have the same feel and amenities that you are looking for.
3. Have a consultation with a Buyer Broker. You don’t want to be out there naked and afraid. Unrepresented buyers can feel like fresh meat at a frat party. Have a consultation with a buyer broker so you’ll understand the process, and get a business card to wave at open house agents. It will offer you a little protection from their sometimes rabid interest in getting new clients.
4. Starting casually visiting open houses to get a sense of pricing for the space, location and features of homes. Take the buyer broker business card obtained in step 3. Think of this as window shopping, but leave the wallet at home! This will help educate you about the local market and how you much of your “wants and needs” are realistic within your budget. View homes for sale also online to further get a sense of what you like and don’t like, locations, and what’s in your budget.

It’s the Final Countdown

Before you get swept up into the house hunting process, it’s time to stop and ask yourself some serious questions.

Hopefully, you understand your personal needs and budget at this point but it’s good to go through some self-reflection to make sure if moving forward on a home is right for you at this time.

Is your lifestyle ready for homeownership? Do you plan to be in the area for at least another five years? Is your job stable and income consistent? Do you plan to marry or have children soon that may affect where you live?

It doesn’t hurt to put some feelers out and then realize that you might need to wait another year or so before you are comfortable or ready to put down roots.  That’s okay to have your own time table, and your agent will understand.

When You’re Ready!

Ready to make this the year you buy your dream home? Reach out to me so we can make a plan—this is an essential step BEFORE going out to see homes.  Especially if you also need to sell a home, it’s important we time everything perfectly so you don’t end up with two homes or no homes.  Let’s set you up for success. Email me gretchen@gretchen-schmidt.com and I’ll set up a private call with you to talk about the entire home buying process A-Z! We will talk about how it all works, what you want in your dream home (tell me everything!). We will get you pre-approved with a lender that I trust and talk about all the fees. Plus, I’ll buy you a coffee or a cocktail!