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Tips to get started So, you want to own your own home? Congratulations! Maybe you’re tired of paying rent and want your money to go to work for you instead of someone else. Maybe you want to try and build some wealth through building equity. It will likely be the biggest financial decision you ever make, so you need to do so carefully and thoughtfully. You don’t need to do it alone. Here are some tips to make the experience easier and to help you navigate the world of home buying.
GET PRE-APPROVED This should be your first step. Meet with a lender to help set a reasonable budget and to get pre-approved for a mortgage. Don’t know a loan officer? Seek recommendations from your trusted real estate agent, or friends and family. Different banks have different rates and programs, so it makes sense to shop around. It’s important to find a loan officer you are comfortable with because they will help you throughout the mortgage process.
THE DREADED DOWN PAYMENT A standard down payment is usually in the range of 20%, but many first time home-buyers simply don’t have that much cash available. That does NOT mean you won’t qualify for a mortgage. Some loans require as little as 3% down and many lenders have products aimed at first time home-buyers. Your loan officer will be able to explain available loan options.
WORK WITH A QUALIFIED AGENT Once you’ve set a budget, the fun really begins! You can start browsing, but it’s best to take the criteria of what you’re looking for to a qualified real estate agent. How many bedrooms do you need? Are you willing to make repairs or are you looking for a home that’s move in ready? Is outdoor space important? How long of a daily commute are you willing to have? An experienced agent will be able to help you focus your search and find your ideal home. Also, buyer’s agents are typically FREE to buyers - they represent you in the sale and, except in a few, very limited circumstances, their commission is paid by the seller or seller’s agent in the Boston area.
TIME TO HUNT Armed with a focused search and market information from your agent, it’s time to start hunting! You’ll be looking at homes that you’re confident you can afford and, from the market data, have a quick gauge on whether the asking price is reasonable. Your agent will advise you throughout the process - they can complete a market analysis on a home to advise whether the asking price is high, low or right in line with recent comparable sales. When you’re ready, your agent will also assist you through the next steps (offer, negotiation, home inspection and more)… but there’s too much to include on that here. Reach out to me and I’ll be happy to talk through those next steps with you! |
