I know, I know. I said my blog would be all about being a mom, but I AM a Realtor also! I wouldn’t be true to myself and my writing if I didn’t write about my career too😊
I am at the age right now where a lot of my friends or acquaintances are thinking of purchasing their first home. The market is HOT here (seller’s market) so it really is best to have your ducks in a row before ever stepping foot in a home.
First Time Homebuyer Prep Checklist
1. Contact a qualified loan officer – they are going to be able to tell you if you can buy, how much home you can buy, and how much money you need to buy a home
2. Have funds available for a down payment and/or potential closing costs – most first time homebuyers can qualify for specific loans (FHA or USDA) where you need little to no money down, but you still need money for closing costs! Don’t expect to need 20% of the purchase price to be able to buy, but in a seller’s market you will still need to bring money to the table at the end. (I.e. If you are wanting to buy a $150k house expect to save about $7500 or 5% of the total purchase price.) I always throw the highest estimate in there, so keep that in mind.
3. Pay down debt – you can potentially buy more home and get a better interest rate if you lower your debt to income ratio.
4. Don’t be a job hopper! – most loan officers will tell you that you must be at the same job (or same job field) for a minimum of two years. Banks see you as a lower risk if you show job consistency and will be more willing to loan you money!
5. Call ME! – but really, if you know you can buy and have the money, let’s go look at all the houses your little heart desires 😉 In all seriousness though, I will talk real estate with anyone who will listen so if you want to call me before steps 1-4 I can answer all of your questions.