Are you thinking about buying a home, but you aren’t sure where to start?  Buying a house in Locust Grove or anywhere for that matter is exciting, but, as a first time home buyer it can also be a little intimidating.  It can be hard to ask questions when you don’t know much about the process.  Here are some of the basics that all first time home buyers should learn in order to get prepared for buying a house.

Research the home buying process

In order to feel comfortable buying a house in Locust Grove, buyers need to feel comfortable with the home buying process.  While it will differ a little depending on your specific circumstances, the basic process of buying a home looks like this:

  • Find a REALTOR® to represent you
  • Tour homes that meet your needs and budget
  • Make an offer on a home
  • Negotiate any home repairs with sellers if needed

These are just the general steps in the process, but it does give you a better idea of what to expect along the way.

Save more money than you think

When you are saving for a down payment on a home, most first time home buyers don’t consider the other costs associated with buying a house in Locust Grove.  In addition to the down payment, there are closing costs (read more here) to pay for on closing day, home inspections, and moving costs.  These can add more to your budget than you anticipated.  Plus, most home owners like to personalize their homes with paint, you may need additional furniture, or there may be some repairs to make on the home.

Find a REALTOR®

Partnering with a local REALTOR® is important.  I want my first time home buyers to feel comfortable with the buying process, so I like to spend time talking about it.  I make myself available to answer questions and set buyers up on a customized search to help them find the house in Locust Grove for them.  During the buying process, your REALTOR® will negotiate listing price or other things for you, make sure that inspections are completed before deadlines, and that everything is done according to your home purchase contract.  Here are some other tips for finding an agent for you.

Talk to Lenders

Even the best REALTORS® can’t tell you what your home buying budget should be.  This is a job for your mortgage lenders.  Mortgage lenders require you to submit financial documents that help them determine how much the bank is going to lend you.  Lenders can also share the different mortgage loans that you qualify for like conventional financing or FHA.

It’s okay to talk with several lenders and find the one who offers the best interest rate and loan for you.

Create a must have list

Everyone has a dream home in their heads, but, in reality, we all have to compromise a little when searching for a house in Locust Grove.  Spend some time really deciding what are features in a home that you must have (ex: a home office, a main floor bedroom) and what are things that you would like but can live without.  Having a clear picture of what you need in a home will make it easier to select homes to view in person once you are ready to start the search.

Find the paperwork

After talking to a lender you will realize that they request some specific documents in order to get a mortgage.  Some of these can include:

  • W-2
  • Income tax returns
  • Paystubs
  • Bank Statements
  • 1099 forms

Even if you are a few months out from starting your search, gather up these documents now and have them ready to give to the lender for your pre-qualification letter.

Get pre-approval

Having a pre-approval letter gives you a specific home buying budget.  When you are ready to start searching for homes in person, then submit your paperwork to your chosen lender so you can get a prequalification letter.  The letter basically states how much money you qualify to borrow and at what interest rate.  When you find a home you would like to make an offer on, this letter needs to be included.

Maintain Your Credit

Now is not the time to purchase a new car, open a new credit card, or make any other financial changes without first speaking to your lender.  Why?  Even doing things that we feel are positive like paying off a credit card or accepting a better paying job can affect your credit score or financial history and therefore your ability to qualify for a mortgage.

Always ask Questions

Buying a house in Locust Grove is a big commitment; no question about any step in that process or clarification about something you don’t understand is stupid.  Your REALTOR® and lender are here to help you, but they don’t know you don’t understand something unless you tell them.  At the end of the day, I always want my clients to have as much information as possible so they can make the best decision for them.