| By Adam Provance |
Are you ready to embark on the exciting journey of buying your first home? Whether you’re hunting for a cozy condo or a spacious family house, there are a few key things every first-time buyer should know to make the process smoother and more successful. Here are five must-know tips to guide you through your home-buying adventure:
When I purchased my first home, I was not a real estate agent yet. I had no idea what I was doing. None. I didn’t have the first clue as to what I needed to do, who I needed to talk to, what qualifications needed to be met, or what paperwork I would need.
I recently had a friend of mine ask, “How do I know if I can afford to buy a house? I’m tired of renting.”
Before
The thought of owning a home was a dream for me as it is for millions of Americans. Perhaps you’re looking to buy your first home. Maybe you’re outgrowing your current home, or now that the kids are out of the house, you’re wanting something smaller with less yard work. Whether you’re buying your first home, or your fifth, purchasing a home can feel a little overwhelming.
Here’s a list of 5 crucial things every home buyer needs to know before they even start looking at homes.
1. Talk with a mortgage lender.
Most people don’t have $250,000 or more just sitting in their bank account to buy a home, so potential home buyers need to talk to a lender about getting pre-approved for a mortgage loan. Don’t even start looking at homes until you meet with a mortgage lender. Some individuals may start talking with the mortgage lender where they do their banking. Don’t be afraid to speak with more than one mortgage company.
They can also help you choose which loan will fit best with your financial situation. There are loans for first time home buyers, that require less of a down payment.
Here is a list of paperwork you will need to provide the lender:
- Tax returns for the past two years
- W-2 forms for the past two years
- Paycheck stubs from the past few months
- Proof of mortgage or rent payments for the past year
- A list of all your debts, including credit cards, student loans, auto loans, and alimony
- A list of all your assets, including bank statements, auto titles, real estate, and any investment accounts.
2. No big purchases. As a first time home buyer, don’t make any big purchases 3-6 months prior to buying a home. A big purchase would qualify as a car, or recreational vehicle, etc. This will affect your buying power, and could keep you from qualifying for a loan.
3. Avoid changing jobs right before you start looking for a home.
Lenders look closely at the work history of the loan applicant. They will be forking out a lot of money, and they want to make sure that they are loaning it to someone with a stable, work history that doesn’t jump from job to job.
4. Meet with a Realtor
Have a realtor help explain and walk you through every step of the home buying process. You’ll be working closely with the realtor, so he or she should be someone that you trust and feel comfortable working with. All realtors are not the same. Choose one that is familiar with the area you’re interested in, responds in a timely manner, and one that you can tell genuinely cares about you. They will be dealing with all the paperwork and the negotiations during the real estate transaction. The great news is that as a buyer, you will not be responsible for paying your agent’s commission, as that is covered by the sellers.
5. Know Your Credit Score
Adam Provance is a residential realtor with Presidio Real Estate. He has over ten years experience in new construction purchases, along with helping hundreds of buyers and sellers. Adam’s areas of expertise are all along the Wasatch Front from Nephi to Logan and Tremonton.