Is now the right time to buy a home?  I know the interest rates have and are going up, but they are still good. Let’s look at the big picture. You have three choices:
  1.  You can rent and pay your landlord’s mortgage payment. Let your landlord control your rent payment, which will probably go up.
  2. You can buy, build equity, generational stability, and wealth.
  3.  Or live in Mom & Dad’s basement (as a parent, option # 3 is out.)

    Ok, so you have decided to step out and buy a house or maybe this is your first home. If you are buying your first home, we call you first time home buyers.
    Let’s get started on your journey, we need to start with a plan. “If you don’t know where you’re going … you’ll probably end up somewhere else.”  Taken from a book title, this quote conveys a very simple message: To achieve an objective, let’s create a plan! If you plan to buy a home soon, you will need to know “where you are going.” For a most enjoyable home-buying experience, a list of priorities that will lead you to your objective—a new home!
    The priority is a time frame. Write down the date by which you would like to move into your new home: Keep in mind that it may take 30–90 days (or more) to locate the right home, secure financing, and complete the home-buying process.

Build a Road Map To Your New Home
  1. Get your finances in order. Before anything else “GET PREAPPROVED.” This way you will know where your payment will be and the amount you can afford. P.S. you will need this when writing an offer. Find a bank or lender that offers the type of loan that fits you best—Conventional, FHA, VA, or maybe Rural Development. While you are in this process you will put yourself on a financial diet.
    • Do not let anyone check your credit.
    • Do not change or leave jobs, if your employment or income changes, notify your lender ASAP.
    • Do not make any new loan applications or apply for new credit cards.
    • Do not withdraw funds savings accounts (must maintain minimum funds to close loan).
    • Gather up your last two years of tax returns along with any other tax or income records your lender will require.
  2. Find a house you can afford. What is your Home Search Criteria?  Develop a detailed description of the home you hope to find. “Need to Have” features and “Want to Have” features. Be specific. Include architectural style, number of bedrooms and baths, location, lot size, and other special requirements.
  3. Hire a professional—a REALTOR. Your realtor can take the information from #2 above and enter your requirements into the Multiple Listing Service (MLS) system, and then use personal market knowledge to come up with a list of homes that best meet your needs and wants. While the Internet gives buyers unprecedented access to home listings and resources, many aspects of the buying process require a level of expertise you can’t pick up from surfing the web.
  4. Think long term. Obviously, you shouldn’t buy unless you’re sure you’ll be staying put for at least a few years. Beyond that, you should buy in a neighborhood with good schools. Whether you have children or not, this will have an impact on your new home’s resale values down the road.

  Until next time…