Buying your first piece of real estate is a big deal! It has long been considered the “American Dream” that everybody is looking for. The younger generation is getting involved and the average of a first-time home buyer is 31 years old in the US. Lucky for them, it is a buyers market but before you buy, there are some things you can do to prepare yourself.
1.) Focus On Your Needs
You are not buying a home to fit in, or because it is the fad. Determine whether it is best for you to buy or rent at this time. I find the best way to discover your needs is to ask yourself a set of questions, and honest them as honest as possible.
Are you getting married?
Plan on children?
Are you investing for profit?
Looking to house flip or own rental real estate?
2.) Listen To The Numbers
Many people can get overwhelmed with all the numbers flying around during a real estate deal, especially on your first purchase. In order to not get confused, and miss important costs in your calculations – I suggest doing proper research for your specific region. A good real estate agent will help you greatly in this aspect of your purchase, but remember it is still your money and your responsibility!
Here are some costs that you will want to make sure you are aware of prior to moving on a property:
Closing Costs – underwriting, appraisal, title insurance
3. ) Be Ready
This is a piggy-back of the last tip. Be ready ahead of time! Your purchase will go smoothly if you give yourself plenty of time out front and have all your paperwork in order. This paperwork includes things like your ID, proof of employment, W-2 forms, up to date credit report, and basic banking financial statements.
Having all of this prior to walking into a bank looking to get a loan will save you time and money! If you have any issues with credit, or any piece of the paperwork – beginning this it ahead of time will allow you the ability to easily correct the issue.
4.) Find Your Real Estate
This will most likely be the biggest purchase of your life up to this point – so of course you want to make an educated decision.
There are a ton of resources available now for home buyers to shop around on the internet. These sites are great and can give you a sense of the market. I recommend the help of a reputable, local real estate agent. An agent will save you the time and frustration of sifting through hundreds of thousands of property listings.
Your agent will be able to find a great deal, with all the terms and conditions you need to fulfill.
5.) You Can Always Walk
Never feel pressured to make an offer or close on a home! If the numbers do not work, they do not work. Many times, the excitement of a new home, or starting a new family will cause people to make decisions they normally would not.
Keep your cool, know your needs, know your numbers, get your real estate.
To Your Success – MA