Yay, you’ve decided you want to buy your first home!
So, now what? What do you actually need to do to get from “I want to buy a home” to actually being a homeowner?
A recent article from realtor.com outlined the key steps to buying a home for the first time, including:
- Save for a down payment. The more you have set aside for a down payment, the lower the balance will be on the mortgage, and the less you’ll pay in interest over the course of the loan. Plus, if you have at least 20 percent to put down, you can avoid private mortgage insurance (PMI), which will lower your monthly payment even more, so start saving the minute you decide you want to buy a home.
- Get pre-approved. Getting pre-approved for a mortgage offers a number of benefits. First, it lets you know how much you can spend, which can help narrow your home search, and prevent you from falling in love with a property that’s ultimately out of your price range. It’s also something sellers and their agents will want you to include when submitting an offer on a home, so getting it done early will allow you to submit an offer as soon as you find your dream home.
- Find a real estate agent. A good real estate agent is an invaluable resource during the homebuying process. As local experts, they can give you insights into the town or city and help you determine which neighborhood might be the right fit. They can also help you craft a competitive offer, and support you on every step of the homebuying journey, from looking at your first properties all the way through closing day. So do your research, ask people for referrals, and find an agent you trust and feel comfortable working with before you even start your home search.