Purchasing a home, particularly your first home, can be a stressful and intimidating process. Here are some tips to help make your experience a positive one:

 

1) Preparation is critical

The most important factor in a successful, positive home-buying experience is

preparation. If they haven’t already, we counsel our clients to consider the below tips,

reflect on their real estate objectives, prioritize a new home’s attributes, and optimize

finances.

 

2) Pay off debts and avoid large purchases

It’s a fact; most of us have to borrow money to purchase real estate. As a result, potential

lenders look closely at our financial health. While your credit score and history will of

course come into play, perhaps the most important metric lenders evaluate is your debt-

to-income ratio.

DTI represents your total monthly debt payments (housing costs, car payments, credit

cards, etc) divided by your gross monthly income. Ideally, before visiting lenders, you’ll

want to pay down as much debt as you can and avoid large purchases that will create new obligations.

 

3) Shop for the lender that best fits your needs

Many buyers make two common mistakes when it comes to selecting a lender. First,

they think that borrowing money is simply about finding the lowest rate. While this is

often true, it’s also important to find lenders that can accurately assess your

creditworthiness, income, and obligations and meet your timing requirements.

 

Second, many buyers mistakenly think that the first interest rate or APR that a

prospective lender quotes them is their best offer. This is not always the case; we will

meet with you to evaluate your specific borrowing needs and help you find the best fit.

 

4) Get pre-approved by a lender

Although getting prequalified (showing how much you may be able to borrow) is helpful,

it’s much better to get preapproved. Unlike prequalification, preapproval means you

have a commitment from a lender for a specific loan amount. This shows a seller that

you have the resources to make a purchase and allows you to act quickly when you find

your new home. We can help you with this process.

 

5) Pay attention during open houses and/or inspections

The more you understand the current condition of a home, the better you will be able to

participate in negotiations, budget for maintenance and/or renovation costs, and project

its future value. Because of our background, we are ideally suited to help you with this.

 

6) Get additional opinions

Getting opinions from family and friends can be very useful, especially for a decision as

significant as buying a home. They may see things that you don’t, and since they know

you well, can help make sure you and your home are a great fit.

 

7) Understand what can and cannot be changed

There are features of a home that can be easily changed (appliances, water heater,

fixtures), and elements that cannot (most obviously location, but also weight-bearing

walls, neighborhood, and others). This is one of our core focuses as we work with you so

that you can make informed decisions and achieve your real estate objectives.

 

8) Don’t be afraid to ask questions!

Reach out to us here with any questions that you may have.