Regardless of the rise and fall of the markets, home ownership has always been and will continue to be at the top of people’s minds as a sense of pride and achievement in their lives. Home ownership is usually the largest invest a person can make in their lifetime. So, what is that you need to do to get ready for this 15-30 year commitment?
First things First, what are your real intentions of home ownership? This is our Why? Knowing why you want to purchase a home is going to be some of the foundation work a Realtor needs in order to help navigate you through the process of home buying. Do you want to buy a home because your best friend just did and they said it is great? Maybe you are tired of living in apartment complexes where you can hear everything your neighbor says through the walls or know exactly what hours they keep each day as they come and go? Maybe you want to live in a particular area close to schools, work or family? Maybe you think it is a good investment? There are many reasons and a good Realtor is going to help understand your need to purchase a home and work with those goals accordingly.
Now that we know why, we need to see if you can afford a home and that will be to determine through whether you will be paying cash or requiring a loan to obtain a home purchase. This is our WHAT as in what type of financing is required of us. Cash is King so they say. Usually a cash buyer has a little more bargaining power than that of a person requiring a loan. Cash doesn’t require all the contingencies a bank needs to get the deal to a closing table. So sellers tend to work more with someone offering a cash deal. A lot of times Cash offers can negotiate lower deals and close within a 7-10 day time frame making it a win-win for everyone. However, if you need to obtain a loan for the purchase of a home you fit in with the majority of Americans. There are many options from a 15 year note, to a 30 year note, whether you are going with a Conventional Loan, FHA, VA or many other lender options that are available. The most important thing to know for sure is working with a lender who can get you the best deals and close the loan on time. Most Realtors have preferred lenders that they work with and usually make the transactions very smooth.
You know why you want to buy a home. You know how you are going to buy your home. The third most important thing to know in this process is where do you want to buy your home? Of course this is self-explanatory as to our WHERE? The number one thing about real estate is LOCATION LOCATION LOCATION, so this one should be really thought through. Do you want to be in a community that has a pedestrian friendly community, walking to local shops, restaurants and taking the kids to school on their bikes? Would you rather be in the country where the land is open and no neighbors in sight? How about living 35 stories above the ground and looking over the concrete jungles? Or maybe your infinity pool pours out to the ocean horizon or hangs over the cliff of trees in the Blue Ridge Mountains? Where ever your location is make sure you consider the end in mind. Resale is very important even if you think you will be there forever.
Planning the purchase of a home is a lot easier to do than other things you may be considering, like starting a family. WHEN is a perfect time to buy a home? Well most Realtors would tell you now and they would be correct. However there are many factors involved about the WHEN, especially if you are getting a loan and the type of loan you are getting. Do you have a down payment, what is your debt to income ratio? How is your credit? How long have you been at your job? When is your lease up? Do you own a primary home and will this be your second home? Will you be leasing or selling your current home to purchase a new home? When is very tricky and needs to be known up front as to get you to the finish line on time.
Since this process can be tricky you need professional help and that is your WHO? Getting professionals to help navigate you along this journey is critical and can be costly if you don’t do it correctly. You have Lenders, Realtors, Inspectors, Contractors, Attorney’s, and more that will be involved. You can get all of them on your own (which can be a lot of work interviewing and checking credentials) or once you pick a Realtor they usually have a team of people that have built relationships with over their course of time and can suggest a few preferred vendors for you in each field. You want to be sure that you get a team of professionals that will work together in your best interests.
So there you have it, the Who, What, Where, When and Why’s of buying a home. Are you ready to buy a home? Then let’s get the ball rolling ~ call your Realtor!