First Time Homebuyer Pro-Tips

Congratulations on your decision to become a first-time homebuyer! It’s an exciting milestone, but it can also be a complex and overwhelming process. Here are some tips to help you navigate the homebuying journey:

1. Determine your budget: Assess your financial situation and determine how much you can afford to spend on a home. Consider your income, expenses, and savings for a down payment and closing costs. Stick to a budget that ensures you can comfortably handle mortgage payments and other homeownership expenses.
2. Save for a down payment: Start saving early for a down payment, as it can significantly impact your mortgage terms and interest rates. Aim for a down payment of at least 20% of the home’s purchase price to avoid private mortgage insurance (PMI) costs. However, some loan programs offer options with lower down payments including FHA loans or VA loans so explore your choices.
3. Improve your credit score: A good credit score improves your chances of getting a favorable mortgage rate. Pay your bills on time, reduce your debts, and avoid new credit applications before applying for a mortgage. Review your credit report for any errors and dispute them if necessary. A higher credit score can mean a lower interest rate for your mortgage which can save you hundreds of dollars each month.
4. Get pre-approved for a mortgage: Before you start house hunting, get pre-approved for a mortgage from a reputable lender. This step will help you understand how much you can borrow, strengthen your offer when making an offer on a home, and give you confidence during negotiations. In today’s market of more normalized interest rates; it’s important to learn about all the programs that you might qualify for. I recommend Guaranteed Rate Affinity (GRA) for a trusted mortgage lender who will go above and beyond for their customers. Contact Vivian Caylor to refer you to one of our local mortgage experts at GRA.
5. Prioritize your needs and wants: Make a list of your needs and wants in a home. Consider factors like location, size, number of bedrooms, amenities, and proximity to schools, work, and other essential facilities. Be prepared to compromise on some wants if necessary.
6. Work with Vivian Caylor, Coldwell Banker Realtor: Engage a knowledgeable and experienced real estate agent who understands the local market. They can guide you through the homebuying process, help you find suitable properties, negotiate offers, and handle paperwork. As a Realtor, my focus is on customer service. Whether you are buying your first home or your fifth home, it can be stressful process. It’s my goal to make the process of buying or selling a home as smooth as possible with an emphasis on getting you the best price in today’s real estate market.
7. Research the market: Research the housing market in your desired area. Look at recent sales, price trends, and market conditions. This knowledge will help you make informed decisions and recognize a good deal when you see one. This is also where a local real estate professional can assist you.
8. Arrange a home inspection: Once you find a home you’re interested in, arrange a professional home inspection. This step can uncover any potential issues or defects with the property and save you from expensive surprises down the line. Factor inspection results into your decision-making process. As a Realtor with local expertise, I recommend Accurate Homw Inspections. They are a family owned business with a great reputation.  Call 773.337.4463 for more information.
9. Don’t overlook additional costs: Remember that the purchase price is not the only expense associated with homeownership. Factor in closing costs, property taxes, homeowner’s insurance, utilities, maintenance, and potential renovations or upgrades. Be prepared for these additional expenses. As a Realtor who works with other local experts; I recommend Sunbelt Title. I can work with their representative to find out what your closing costs may be.
10. Stay organized and ask questions: Keep track of important documents, timelines, and deadlines throughout the homebuying process. Don’t hesitate to ask questions and seek clarification whenever needed. It’s essential to understand the terms and conditions involved to make informed choices.

Dream Big, Set Goals and Take Action! Remember, buying a home is a significant investment, so conduct thorough research and make decisions that align with your financial goals and lifestyle. Don’t let another year go by while you pay your landlord’s mortgage instead of your own. Good luck with your homebuying journey!