So, you’ve decided it’s time to be a grown up and buy your first home. Congratulations!!
Being a homeowner is not only a great thing for your life now, but it also greatly impacts future wealth. Homeowners have 31 to 46 times the net worth of renters. That’s a whole lotta money… and I can tell you right now, your future self really wants you to buy a house!
What most renters don’t realize is that they are paying a mortgage as well, they are just paying their landlord’s instead of their own. If you are at a point in your life where it makes sense to put down some roots and buy a home then I suggest you do it sooner rather than later and start on your path to building wealth.
Here are the four steps to buying your first home:
- Talk to an expert. There are two vital parts when it comes to buying a home. Finding the right house (use an expert Realtor) and securing financing (use a reputable Loan Officer – that’s me). It is essential that you work with an experienced Realtor and Loan Officer that will listen to your needs and guide you through the process of finding a home and getting the best financing for your situation. P.S. Let me know if you want a recommendation of a world-class Realtor. I know a few 🙂
- Determine your house price. We will look at your credit, income and assets to help you decide on your home price range. Even if you aren’t planning on purchasing a home for a while, you can start looking at homes in your range and decide on neighborhoods, amenities etc. so that when you are ready to buy, you will have a very good idea of what you want and what is a good deal. If you have had some credit struggles then we will guide you through the steps to improve your credit to the point where you will be able to get a mortgage.
- Protect your credit. Limit inquires into your credit if you will be buying a home within four months. This is especially important if you have borderline credit scores. Keep revolving balances low. Revolving accounts (credit cards) will start helping your credit if the balance is below 50% of the high limit. They will start to hurt your scores if the balance gets above 50%. If you are able to pay off your revolving accounts, do NOT close the account. Open accounts with a zero balance help your credit score. 90 days same as cash is not the same as cash and will show up as a loan.
- Save money. Even if you have your down payment saved or are getting a 100% loan or a gift from Aunt Edith; I recommend that you start saving for a house emergency fund. Owning a home isn’t always a blessing and there will be expenses. Having an emergency fund takes away the stress of home repairs and gives you the ability to do upgrades as they become necessary.
It is a great time to buy a home and we can help you through the process!