You just found another letter in your mailbox that the landlord is raising the rent...
There it is. That thought that creeps back in to your head every time you get one of those "rent's going up" letters, or when the tenant upstairs is playing Metalica at volume 15 at 2:00AM or when you see a cute lil' house with a
"For Sale" sign in the front yard.
The answer is .... Yes you can!
There are lots of to-do's that will be on your list. But as I always tell my buyers, the DON'T do's are probably more important than the to-do list!
As soon as you make that decision to begin the path to becoming a First Time Home Buyer here are
The Three Things to NOT DO...
- Do not make any major purchases or enter into any transactions that would affect your credit. Buying a new car with a monthly payment will mean that your debt to income ratio is affected and potentially mean not qualifying for a mortgage.
- If your apartment/home rental lease is coming to an end, don't sign a new 12 month lease if at all possible. Most landlords will offer a month to month lease after you've completed your first 12 months. Having to break a lease once your offer on your new home has been accepted can be quite costly (sometimes it could mean paying all the monthly rent due till the end of your lease and losing your security depost- depending on the rental lease you've signed. Be sure and read your lease carefully before entering into an agreement of sale on a new home.)
- Don't change jobs! This one sounds crazy, I know. I've had a client that had an amazing job offer and because it meant a substantial pay increase, she thought it would be a GOOD thing. Which makes sense except in the world of mortgages. Your mortgage will be based on the length of time at your present job. While you may be making more money at that new job, there is no past proof of income. This may not completely deter your purchase- but it will delay it. You
- could be required to wait a certain period of time to have verification of income before being able to proceed with your mortgage application.
Having your own Realtor to guide you through these ins and outs is absolutely imperative. Finding a buyers agent that will represent only you (Calling on the agent on a sign without having your own buyers agent means that you would be using the same agent that already has a fiduciary responsibility to the seller. Doesn't sound like a winning situation for negotiating your best price, does it?) The good news about having a buyers agent working for you is that it costs you nothing- that agent's commission is paid by the sellers! So why wouldn't you use your own buyers agent, right? It's a no-brainer!
To find your buyers agent, ask questions- lots of questions. It is vital to be comfortable asking questions of your agent. Finding that perfect fit means less stress for you on the way to the settlement table!