Realize Your Homeownership Goals

You decided you want to buy a home. Great!

Once you have made this decision all of the information that you are bombarded with can be overwhelming. This quick guide will simplify the steps to homeownership and put you on the right path to realize your goal.

1. Plan & Strategize:  After you have saved enough for your down payment and closing costs your next step is to speak with a Realtor. Speaking with a Realtor will provide you with the knowledge and understanding of the market you are entering. Whenever I speak to my clients (first time buyers or repeat buyers) I will often inquire about their strategy. Many times the client has not thought that far, and that’s ok. Your strategy is not tied to the home, but more so to your financial goals. Remember, the home is the financial vehicle. Where do you want it to take you? What is its purpose?

2. Obtain A Preapproval:  This step is often what buyers are told to tackle first. I disagree for the reasons mentioned in step 1. The lender simply provides the financing for your home and does not assist in the strategy of obtaining the home. However, a loan officer is the only party that can provide the preapproval amount and tell you how much you can truly afford. There are several factors that go into your preapproval amount and impact your interest rate. These factors are your:

• Credit Score: The lender will need authorization to run a credit check
• Income: The lender will require pay check stubs to determine monthly income
• Debt/Income Ratio: “It’s not how much you earn, but how much you keep”
• Down Payment: Lender will require bank statements with sufficient down payment funds

3. Revisit Your Realtor:   With your preapproval letter in hand you can now further discuss your plans and finalize your home buying strategy with your Realtor. A complete buyer profile and a clear understanding of what you can afford allows the Realtor to further hone in on your search. At this point you can begin schedule showings and placing offers with confidence.

This is not the end of the home buying process. Sometimes you will need to revisit your strategy due to housing inventory, home prices, and market demand. Having a Realtor that understands your strategy, as well as the market, is key to staying on track and motivated. Education goes a long way and prevents buyers from making emotional decisions with their finances.

If you are in the market to purchase a home and would like to begin realizing your homeownership goals, please contact me today.