Buying your first home is an important decision and you want to do it right. In order to succeed you need to know the steps to take to make the American dream possible. Here are the basic steps of what you need to do:
1) Decide Exactly What You Need From a Home.
What you need from a home is totally up to you and depends on your current circumstances. Before you pick up the phone to call a real estate company, map out what you need from your home. This will help your real estate agent serve your needs better. Think it out; bedrooms, bathrooms, etc. Do you want a walk-in closet, perhaps a balcony? Make sure you stick to your budget but besides that the sky’s the limit!
2) Appoint Your Real Estate Advisor.
I say “advisor” because you are the decision maker. The real estate agent is someone who knows the law so they can help you make good decisions when it comes to buying your home. This makes them your advisor. So give a local real estate company a call, it’s normally a good idea to give a phone number and email, this way your advisor can contact you better and faster if any news about homes comes up.
3) Set Up a Visit or Appointment With Your Real Estate Advisor.
Now that you have your advisor, it best to schedule a visit or appointment with them. This is a good time for you to go over your needs and budget to get started. You may also receive advice about finding your new home and moving from your current one. After this you would probably schedule an appointment to look at homes on a later date.
4) Your Pre-Approval Letter
A pre-approval letter is a letter that states how much a lender thinks you can borrow based on your income and credit profile. Many suggest that you acquire this before shopping for a home. According to Realtor.com, many sellers will only accept offers from buyers with pre-approval letters. Talk to your real estate advisor for some recommendations.
5) The Hunt Begins!
Everything is in place and now it’s time for the fun part. When searching for your home it’s best to start with your budget. Calculate your mortgage and other payments to get an idea of what you’ll be spending. Also according to Realtor.com it’s not wise to spend the maximum amount you can borrow but you may want to spend a bit above your set price depending on your comfort zone. Next, you want to find the right neighborhood for you, bear in mind that this can influence the price of the home, so the better the area, the higher the price in most cases.
That’s it! You've got the basics to buying your first home. Enjoy!