Each year approximately 43 million Americans relocate. Many of them are first time home buyers with little to no experience in the process. With the growing amount of information – both good and bad – online, many people think the process can be as easy as just checking out homes on one of the many available real estate websites. It’s not!
While the Internet is a perfectly good place to start, it is just that, a good place to start. You should be wary about proceeding too far, too fast without doing some basic homework.
So, what should you do (or not do)?
1. Review your finances. Do some real work on your personal finances so you can make an eyes open decision about how much you can really afford to spend on a home. Once you’ve done this, talk to a lender who can help you refine your expectations. People quite often underestimate the costs of buying a home and find themselves not able to move forward with the dream house they’ve just found. For instance, if you can’t pay at least 20% down, you’ll be paying PMI (Private Mortgage Insurance). Understanding this cost is a significant component of your monthly home owners’ expense. To get a solid start, you’ll need to have two years of W-2’s, two recent pay stubs, copies of your bank statements, and your most recent tax return.
2. Pursue Pre-approval. Statistics show people who have been pre-approved for a mortgage will have their offers accepted more often. So, working with a quality lender will not only help you understand all of the costs of buying that home but will also poise you to be more successful when you make an offer.
3. Work with a Real Estate Professional you can trust. Ask around and find someone that has been successful in your area. That person is going to be a lot of help in finding the right home for you. They’ll likely already know more than you can learn about neighborhoods, schools, local amenities, and proposed changes in the area. Don’t be afraid to ask a prospective realtor how long they’ve been working in this geographical area and what kind of success they’ve had. When you get into an agreement, you’ll also need objective help as to how to handle the issues that tend to come up. If you’re a first-timer, this part of buying a home can be incredibly stressful. Having a trusted professional on hand throughout the process will make it all go more smoothly.
To be sure, buying your first home can prove a daunting task. After all, this is the largest purchase most people will ever make! However, getting as much information as you can up front and working with the right people can make the experience not only manageable, but even enjoyable. Now, go get that dream house!
Michael Kracht became a lawyer quite simply to help people and make a meaningful difference in their lives. It is that desire to help and go way beyond the typical “call of duty” that motivates him to be an outstanding advocate and counselor to his clients. Michael’s practice at Weber Kracht and Chellew focuses on real estate, land development, municipal law and litigation matters. Despite his busy practice, to this day, Michael is active in doing pro bono work for the community including handling protection from abuse matters.
This blog is designed for general information only. The information presented should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
