Buying your first home can equal parts exciting and stressful. It’s both the largest and most important purchase you’ll probably make in your life. It can be tempting to jump right in and start shopping for houses and placing bids with sellers, but there are a few important things you need to do before you can start house hunting.
1. Get Pre-Approval for Financing
The first thing you absolutely need to do before looking into buying your first home is to get pre-approved for financing. This means filling out pre-approval forms from a few different lenders to get an idea of how much you can actually afford. House hunting without a realistic idea of what you can afford will only get you into trouble. You don’t want to fall in love with a home you can’t buy.
2. Hire a Realtor
Another important thing you need to do before looking for houses is to hire a Realtor. Working with a real estate agent can make the home buying process go much more smoothly, especially for first time buyers. Thirty-three percent of home buyers were first-time buyers in 2014, so don’t feel like you’re behind or the only one who has never purchased a home before. Just make sure you find someone to help guide you through.
3. Do Your Homework
Aside from getting pre-approval for financing and hiring a real estate agent, you also need to do your homework before you get out there and start actually shopping for houses. The majority — 90% — of home buyers used the internet at some point when shopping for their homes, so it’s a good place to start. Look at market values, mortgage rates, and research prospective neighborhoods before actually starting to shop for a home.
Do you have any questions about getting approved for financing, finding a Realtor, or doing research? Feel free to ask us in the comments section.
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