When you think about purchasing your first home, what are you feeling? Nervousness? Excitement? Doubt? Terror? (hopefully not!) Even if you are not ready to start looking at homes, you can start behaving financially like you are purchasing a home. This means digging into your finances and really finding out how much home you can afford as a first time home buyer. Here are some tips to help prep you for your home buying journey.
Familiarize yourself with the current market and accept it.
The housing market has changed from a few years ago. If you tell yourself you are going to wait until interest rates return to two percent, then you may be waiting to buy for a very long time. Since you are in the beginning stages of the home buying process, understanding the local market (feel free to reach out to me just to chat) and interest rates can help frame your expectations of how much homes cost in different areas. For example, a Locust Grove home of similar square footage and condition to a home in Culpeper can have different listing prices.
Get your current financial picture.
Find a mortgage lender who you would like to work with and ask them to help you get pre-qualified. The lender can look at your finances, suggest certain debts to pay off, share the type of loans you may qualify to receive, and give you suggestions to help strengthen your buying power.
Save more money.
During this phase of the home buying process, try to save as much money as you can to put towards a down payment on your future Locust Grove home. Also, remember there are other costs associated with buying a home, so having some money saved for these expenses can be helpful.
Learn about different mortgage programs.
There are lots of loan programs out there and some are geared towards first time home buyers. Learn about these programs to help find the mortgage for you. There are also programs out there with qualifications to help with down payments.
Find out what your home buying budget is.
After getting pre-approved with a mortgage lender, you will know exactly how much money you have to spend on a home. This budget will help to shape your search.
Explore potential areas.
Don’t wait until you are looking at homes to decide if this is the neighborhood for you. Take some time while you are prepping for your home search to explore potential areas and visit ones you hadn’t considered.
Find a Realtor®
Working with an expert who can help guide you through the home buying process is really important for first time home buyers looking for a Locust Grove home. Find a Realtor® who can explain each step in the process, is prompt and responsive to texts and emails, and is willing to go the extra mile for you!
Doing a little prep work before you ever start touring homes can really help you to form a clear picture of what type of Locust Grove home you want, what your budget is, and where you want to be!
