What You Need to Know About the Initial Stages of Buying a Home
Let us assume that you have rented all of your life. Only recently have you considered buying a home. This could be the result of a raise, a marriage, a new child, or just the desire to own your own place. When you first consider ownership of a piece of real estate, the thoughts quickly become a passionate obsession. You find yourself looking through every real estate magazine, searching online for listings, and calling agent to get prices and information on properties.
Do It Right
When excited during these beginning stages, most people make their first mistake. They begin to research their desired neighborhoods, recording phone numbers and searching out "For Sale
" signs prior to figuring out how much they can really afford. If you're one of those people, you probably need to stop and reassess. Before you ever start calling the agents whose photos appear on the flyers in front of the homes you're interested in, make certain you won't be in over your head with decisions that stem from excited curiosity. You likely aren't ready to go look through homes
on the market if you're taking steps in the described sequence.
Figure Out Your Budget
While it's fun to think about buying, there is a proven way to calculate your mortgage budget. Before you begin searching for your dream home, sit down and see how much money you actually have available. Do you have a down payment? Can you afford the extra upkeep and utilities that go with a new home? You can read more about it in our previous article The 1st Step to Take Before You Buy a Home
Once you have figured up your own financial situation, you can contact some lenders to see if they feel that you are worth the investment. They may need to run a credit report and follow up on some of your bills. If you get positive answers from them, it may very well be time for you to embark upon the world of owning your own home