If you aren’t quite sure how to start your journey to home ownership, then this blog is for you!  Whether you feel ready to start your search today or are looking forward to owning a home in the future, there are actionable steps you can take now to help your future self.  Home buying can feel like a long daunting process, but it doesn’t have to be.  Finding a REALTOR® (hey I know a great real estate agent in Locust Grove and the surrounding area), asking questions, and gathering information about the process will all help start your journey.  Here are some other things to do now to start your home search.

Talk with a Lender  

Sharing some basic financial information with a lender will help learn how much money you can borrow, what the approximate interest rate of a mortgage could be, and what your credit score is.  While you may not be ready to request a pre-approval letter just yet, a mortgage lender can provide you with some guidance to increase your buying power.  The lender may suggest what credit cards to pay down, give suggestions for improving your credit score, and can let you know what kind of loan programs you are eligible to receive.

Create a Budget that Includes Saving for a Down Payment

While many people are aware of how much they spend for car insurance or electricity in a month, most don’t consider where all of their money is going.  For example, how much did you spend at the grocery store?  Eating out?  Entertainment?  Creating a budget helps buyers examine their spending habits and can point out areas of improvement.

If you are thinking about buying a home in Locust Grove or elsewhere, you will want to start saving for a down payment.  While every loan program is different, having a down payment of at least twenty percent for a convenient loan means you won’t be required to have private mortgage insurance.  The larger the down payment the less the mortgage will be.

Explore Neighborhoods

Sometimes a neighborhood seems ideal until you spend time in it.  Then buyers might realize it is further away from work than they thought, or there aren’t as many community amenities (parks, events, shopping) as they thought.  Before you start personally touring homes, explore neighborhoods and find the ones that are good fits for you.  This will save your future self a lot of time visiting properties that don’t meet your needs. You can also ask your real estate agent in Locust Grove for information about which neighborhoods have HOAs.

Gather Up Important Paperwork

Start a folder (either an old school paper one or a file on your computer) to collect the paperwork that a lender will ask for when you apply for a mortgage.  Why do this now?  It can be time consuming to hunt down the paperwork and you will often be under a time constraint to produce it.

Most lenders will request the following:

  • W-2
  • Income tax returns
  • Paystubs
  • Bank Statements for all accounts
  • 1099 forms
  • Profit and Loss Business Statements if you are self employed.

Determine Your Must Haves

Decide what home features are absolutely necessary in order for a home to work for you.  Whether it is a separate home office space, a garage, or the number of bedrooms, having a clear picture of what you want in a home will make your home search easier.  You can share this info with your REALTOR® to have another set of eyes searching for homes for you.  You can also easily eliminate homes that don’t have these features.

Find a REALTOR®

If you are a first time home buyer, then partnering with a real estate expert can make the home buying process easier.  It is okay to talk with a few agents and decide which one is the best for you.  Even if you aren’t ready to start your home search tomorrow, a great real estate agent in Locust Grove will answer your questions, can provide you with contacts for lenders, and get you set up on a personalized home search.

When you are ready to start the search for your home, this real estate agent in Locust Grove is ready to help. I’m an expert in the local housing market here in Locust Grove as well as the surrounding area. Let me know when you are ready to start!