Buyers: Starting Your Home Search

If you are envisioning a new home in your future, you are probably beginning to put together your plan to find your new place. You may have even begun surfing the internet looking for new listings. STOP! Searching for your house is the easy (and fun) part. Before you even step out the door--or pull up a home-search site-- you need to get your financial home in order.

There was a great article in the Washington Post (this version is from the website, so the title is different), 1/18/2014, With home buying, planning ahead will make the multi-step process easier.  This article should be required reading for all first time home buyers. Even folks who have bought a home before should read this article; it has some great advice and great lessons. Just because you think that you could 'swing' a certain monthly payment, doesn't mean a lender will lend you the corresponding amount. A new rule about Qualified Mortgages requires the lender to demonstrate more specifically that you will be able to repay your mortgage. This rule will make it much more difficult for buyers to over-extend, but in some cases, will also make it difficult for them to qualify for mortgages that, even a month ago, they would have been well qualified for. No longer can bonuses and overtime income be automatically counted as income. This will affect many buyers!

The Mortgage Market is constantly changing.  The rules are being rewritten every day. As a result of the real estate meltdown, lenders are required to get more information from potential buyers and review it more carefully than ever before.  If you spoke to someone even a month or so ago, you need to give them a call back and have them revisit your numbers.


How should you get started with your search? By talking to a good lender and getting a good understanding of your ability to get a mortgage. Most Realtors® can provide you with referrals to great lenders who can help you determine what you can afford--and the amount for which you qualify.

Once you have a good understanding of what you can borrow, contact a Realtor® to get started with your search process. If you will be looking for a new or existing home in Northern Virginia, I would love to talk to you about helping you find the perfect one.

Happy house hunting!