Here are the three steps all first-time buyers must take before purchasing.
If you’re thinking of buying your first home, there are three steps you need to take to ensure you have a smooth, successful purchase.
First, start planning early. Many people wait until their lease expires or they absolutely have to move to start planning their purchase, and this can cause them to buy in a panic. If you’re buying in a panic, you might not make the best decision and get everything you want out of your new home.
So talk with a lender, clarify your financial situation, and know exactly what your price point is. The last thing you want is to get excited about a few properties you see online only to find out they’re out of your price point. Also, meet with an agent early on in the process so that you two have a good working relationship before you look at houses.
Second, think about your five- to seven-year life plan. A lot of people think in a more short-term sense when purchasing a home, but staying in a property for only a few years isn’t a wise investment due to the cost of buying and selling. Generally speaking, you won’t get much equity doing this.
What do you think your life will be like in five to seven years? Obviously, nothing ever goes 100% according to plan, but if you’re confident you’ll be making more money, getting married, or starting a family, you need to be sure you won’t grow out of your first property quickly and have to buy another home. It’s better to buy a home that already has what you’ll need rather than upgrading in just a couple of years.
Lastly, if it makes more sense to wait to buy, then wait. The fear of missing out is real, but it’s not always a good decision to buy if you’re not 100% ready, or your five- to seven-year plan doesn’t match up with where you are financially. If you plan on getting a raise or promotion that will help you save for a larger down payment, thereby allowing you to buy a bigger home and ensuring you’ll be able to stay for five to seven years, it might be a better idea to wait until that raise or promotion happens before buying.
It’s also possible you’ll get a better mortgage rate by waiting because your credit situation needs work, or you’re simply not sure what your job situation will be in the near future. In any case, it’s wiser to wait until you know what your plans are before buying a house. Again, you don’t want to buy in a panic. Know what your life plan is and see what makes the most sense for you.
If you’d like to schedule a consultation to outline your home buying plans, don’t hesitate to call, text, or email me. I’d love to speak with you.
