I received a call this week from a young couple I met at a home buying seminar. The topic highlighted local first time home buyer programs (more on that in another post) and as a broker, I thought it was very informative and timely. The question posed by the young couple though made me take a step back and really think for a minute. Their question was very simple, so simple in fact that it shocked me that it was not answered, but upon reflection, it often is when we (real estate professionals) are giving out information about home buying. The question was simply “Where do we start”?
So if you are interested in buying a home and have that same question, this post is for you. My advice would be to:[spacer height=”20px”]
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Get Pre-Qualified
Financing your purchase is the cornerstone of the home buying process. Whether you are ready to buy right now or you are thinking about buying within the next 12 months, you will save a lot of time if you speak to a lender first. Speaking to a lender will let you know several important things such what type of loan programs you are eligible for, what is your purchasing power (how much home can you afford), and what you can do t
o strengthen your loan profile. It will also help you be able to plan your strategy if you find you aren’t as competitive as you need to be in the current market. Do you need to save more for a down payment, or raise your credit score by paying down some debt or clearing up mistakes? All of this can be determined with the help of a good lender.
[spacer height=”20px”][spacer height=”20px”]Take a 1st Time Home Buyer Workshop
One of the many benefits that a HUD-certified housing counselor provides is access to the many programs available to first time home buyers such as down payment assistance programs and grants. The vast majority of first time home buyer programs require a certificate of completion of education from a HUD-certified counselor. Most classes are 8 hours over the course of 1 or 2 days, depending on scheduling, and can even be taken online. Some require a small fee but there are plenty of free classes, and the certification generally lasts for up to two years. It is worth taking some time at the very beginning of the process to ensure that you are eligible for more money to put toward your home purchase.
These first two steps (taken in any order or at the same time) will put you on solid footing on the path to homeownership. For a deeper understanding of the home buying process, I invite you to join us on the second Saturday of each month as we go into the home buying process in depth. We want our clients and the greater community to be as knowledgeable as possible when it comes to real estate.
Do you have any burning real estate questions? Let us know in the comments.