Buyers: When to Start Touring
So you’re ready to see some houses for sale?! Make sure you are really ready before you head out the door with these steps
As a home buyer in a competitive time, it pays to be prepared before diving in the deep end and getting ahead of yourself.
Many home buyers make the mistake of home touring before they’re truly ready and have their hearts utterly broken by not being qualified for the home they love or end up in a rushed transaction by working with pushy lenders, sellers or agents or even end up with buyer’s remorse because they didn’t do enough homework on the house.
1. Understanding Your Budget
Buying a home of any type and any size is one of the largest purchases a person generally makes in their lifetime. You have to take some time to understand your current financial situation and obligations first. Review your household income, debts, upcoming expenses, and your savings plan to see where you stand.
You can also check out this mortgage calculator to get a rough estimate of a monthly mortgage payment:
2. Gather Your Down Payment
This is common questions, how much down payment will I need to buy a house? Normally a buyer will need between 3.5% – 20% of the purchase price ready for their down payment. They will also need an extra 1%-3% available for closing costs. Plus, moving expenses, inspection fees, immediate renovation costs, etc…
3. Find The Right Realtor
This is a must-have; you’ll want to have a trusted professional in your corner during this process. Realtors act as advisors, a resource and as your representative looking out for your best interests. They also will negotiate on your behalf and can help with local knowledge of a city’s restrictions or requirements as a new homeowner. Remember, a Seller’s agent represents the Seller, a Buyer’s agent represents you, the Buyer.
*You have found the right Realtor – it’s me! 🙂
4. Get Pre-Qualified (or even better) Pre-Approved
Now is the right time to discuss your housing goals with your lender and get pre-qualified. Your Realtor can help you get started if you’ve never worked with a lender before. I have a list of trusted lenders that I have worked with in the past that I can share with you. It is always recommended to talk to 2 or more lenders to see what type of loans and rates they can offer you for your specific circumstances. Every lender is a little different. Once you are Pre-Qualified for a loan you will know exactly how much home you can afford.
5. Start Touring Homes!
Now that you have all your ducks in a row, it’s time to start touring homes! We’ll discuss your wish list for your home, what neighborhoods you like best and what your ideal timeframe for moving is. Then we will tour all the homes that you’re interested in. This is the fun part!
For more information about any steps in this process, reach out to me to discuss.
Let’s get started today!