When Should I Buy My First Home?
If you are asking yourself when the right time is to buy your first home, then you may have already answered your question. The motivation to buy a first home is not generally determined by real estate market conditions. In truth, the majority of people base buying their first home on some of the following circumstances, needs, and reasons:
> Family is growing and you want a sense of ownership and investment.
> Tired of renting and wanting money to go into something you have an invested ownership in.
> The need to live closer to a job.
> A sense of freedom, achievement and independence.
The real estate housing marketplace goes up and down, but one thing doesn’t change and that is that people still have the need or desire to buy a home. And through both good markets and bad ones (like at the time of this writing), there are still many loan and mortgage programs to help a buyer get a desired home.
Even in today’s negative marketplace (which actually makes homes cheaper to buy) there are many different loan programs to fit a home buyers need. From city assistant programs to county/state down-payment assistance programs, knowing your options can help make you more successful in your home-buying quest. Even home buyers with bad credit can look into debt counseling and reduction programs to gain a new lease on financial matters like buying a home.
So that brings us to the question as to the process you need to follow to become a homeowner.
1. Be sure that buying a home is what you want to do and what you’re ready to do.
2. Get all of your financial situations in order.
The better credit rating you have the easier it will be to move forward. Pay off debts and check your credit score to make sure there are no mistakes on it that will throw up red flags.3. Save up for a down payment.
Examine all of your assets. The bigger down payment you can make, the more likely you are to get the financing you need.4. Don’t make any major purchases before buying your home.
5. Make sure your employment history is strong
Your employment history should demonstrate a sense of stability.6. Work to get pre-approved for your mortgage.
Once your finances are in order, talk to your lender or broker to learn exactly how much money you can afford to borrow and what the expected out-of-pocket costs will be for the closing.7. Find a credible and licensed real estate agent.
Search for a real estate agent that can work with you based on your needs and your schedule. Examine the real estate agent’s references of previous clients. Your agent will work with you to help you find a home that will meet both your immediate and your future needs. You can also look for references from family and friends who purchased a home.8. Be an informed and practical buyer.
Once you determine exactly where you want to live, write down what other factors are most important for you and your family. This could include commuting time to work, information on crime in neighborhoods, and where schools are located.9. Look for a home that works for you.
Picture yourself (along with your family) living in the home. What is important for you to have in the home? Is cooking important to you? Do you spend a lot of your time in the kitchen? Questions like these will help you determine exactly what you need to accommodate your daily habits. For example, if you work from home you’ll want a nice home office space.10. Make the offer.
Once you have located a home that meets your needs, work with your real estate agent to make an offer based on the listing price, along with comparable information and market considerations.11. Consider getting a home inspection.
You want to know the pitfalls and strengths of your new home. You may find that it will be more expensive to repair or upkeep than you’re willing to pay. You can also use a home inspection to possibly get a better deal.
Once your offer has been accepted, you will enter what is known as an escrow period, Prior to the close of escrow, you will sign all of your finance paperwork, and pay any remaining deposit and closing fees. Once funding is complete, the title company will record the new purchase deed with the County Recorder’s office, and you will officially “close”.
Now comes the best part - moving into your new home. Enjoy the freedom of ownership and keep your finances in order so that you don’t run into trouble down the road. Congratulations on your new home!