One of the greatest experiences in life is being handed the keys to a home you can call your own. But finding the right home and completing the purchase is often as difficult as it is rewarding. Each part of the process requires serious decisions and not many purchases go through without at least a few glitches. Surveying the rugged landscape that lies ahead, where should a home buyer go to begin the journey?
Begin your home search by seeing an agent first. Some will suggest you meet with a mortgage lender first to get pre-qualified for a mortgage. Others will say that you should start by seeing a financial planner or tax specialist. My advice is to see all these professionals, but start by seeing an agent first. Here’s why.
Of all those on your home purchase team, your agent has the unique training and resources to manage the total purchase process. They are the “quarterback” who coordinates the efforts of all the other players to make sure tasks are identified and deadlines are met. They use their experience to anticipate problems and to find solutions in every facet of the transaction.
At your initial meeting with an agent, you will be briefed on current market conditions and typical home prices for the type of property you will be looking for. You will review the home purchase process and the specific steps required to complete your purchase. In short, this consultation will provide a general understanding of the tasks that lie ahead. Afterwards, when you meet with a mortgage lender, financial planner and tax advisor, you will do so with an understanding of how the information they provide fits into the big picture of your home purchase.
Each buyer is unique, but here is a simple four step process that I often recommend:
1. Agent Consultation. Discuss market conditions and the purchase process.
2. Financial/Tax Consultation. With a CFP and/or tax advisor, develop a budget for all your financial needs (housing, savings, education, retirement, insurance, etc.) and plan for the financial impacts of buying and maintaining a home in the short and long term.
3. Mortgage Consultation and Pre-Qualification. Use your budget to establish borrowing limits and to pre-qualify for several specific loan programs.
4. Home Purchase. Now you’re ready to start looking at homes, so meet with your agent, make a plan, and get on with it! Repeat any of the previous steps if assumptions, facts or conditions change.
I hope you found this information helpful. If you have any questions, please drop me a line at john@jsrealproperty.com
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John Souerbry is a California real estate broker and REALTOR(R), DRE license 01370983.
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