Determine how much you can afford: This is probably one of the most important things you should ask yourself before you start your home search. It is easy to set your search parameters to match what is on your wish list rather than what you can realistically afford. You may think you can keep up with the Jones, but when those monthly mortgage payments start coming in, are you going to die trying to make the mortgage? And trust me- I can relate! The days of #instagram and the new age of influencers can make you feel like if they have it, I must have it too! If they can afford it- more power to them! If you can, that is great. If it is over a million (give me a call). But in the meantime, go over your finances, put together a budget and start a preliminary search on what type of homes you see for sale in your area and what they are going for.

Save for the down payment: When you initially think/ talk about buying a home, saving for a down payment should be one of the first things you do. Once you figure out what you can afford, it is easy to get an idea of how much you will need to put down. All you need is 3.5% if you are applying for an FHA loan. According to Realty Times: “Many renters assume they’ll never be able to buy a house. They spend so much money month to month, there is little or nothing to put away. And the idea of coming up with tens of thousands of dollars for a down payment seems impossible. But here is the reality: The current national median home price is $257,000, and 3.5% of that—the minimum amount needed for an FHA loan—is just under $9,000. Does that seem more doable?”

Get Approved for a Loan: Hey, it is easy and 100% necessary for all involved. It is a time saver and will be a good, rough idea of what you can afford based on your finances. But, most important, just because you can afford it, does not mean you will be comfortable with your monthly payments. Have an open discussion with your lender and tell them what you are comfortable paying, and they will do the rest. It is basically magic!

Find Representation: Your realtor is going to hold your hand throughout the entire buying process, so make sure you like them!

If you have any more questions, feel free to give us a call at (615) 794-1411!

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