Preparing to purchase a home can seem daunting, but it doesn’t have to be! In fact, it can be fun with the right team of professionals in your corner to explain the process, field your questions and help you formulate a plan that works for YOU!

Whether you’re 3 months out or 12, buying a home will likely be the biggest purchase you make and therefore, it’s imperative to plan early so you have ample time to do the process right and make it as stress-free as possible. With that said, here’s recommendations on where to start if you’re planning to purchase a home this year:

The first best step is to start saving. When purchasing a home there are smaller upfront costs, such as the appraisal and inspection, as well as the larger costs which are the downpayment and closings costs. For each buyer, these costs will vary and therefore the second best step whether you’re considering buying in a few months or 6-12 months is connecting with a REALTOR®.

Connect with a REALTOR®. You may feel it’s too early to chat with a REALTOR® if you’re 6-12 months out, but the earlier you connect the better.

The reason being is that your trusted buyer’s agent will be able to help you formulate a timeline and savings plan for your home buying goal, learn more about your needs so they can assist you properly, discuss the home buying process with you, so you know what to expect and aren’t left guessing and lastly, they will field any questions you may have. Don’t leave it to google to answer your first time home buying questions, as that’s an easy way to get the wrong information or get overwhelmed.

Your REALTOR® should also be able to provide you recommendations for trusted lenders in their network if you don’t already have a lender in mind, as your next step is reaching out to a lender. Again, it may seem premature to reach out to a lender a year out, however, this is a very important step in achieving homeownership.

Your lender will review your finances, help advise on how to financially prepare to purchase a home, and will have insight on loan programs you qualify for. Depending on your financial profile, you will qualify for specific loan types. Once your lender knows what loans types you qualify for, they will advise you on the you on how much money you’ll need for a downpayment and closing costs, which is vital! In addition, if you have poor credit, or a large amount of debt, they can work with you to formulate a plan to raise your credit or pay down your debt.

PRO TIP: Many states offer first time homebuyer grants or loans to help first time buyers with their down payments and closing costs. Be sure to speak to your lender about this, as it can possibly save you thousands out of pocket.

In addition, I wanted to share that first-time homebuyer loan programs require only 3.5% for a down payment and normally closing costs for a property are 2-3% of the purchase price. This should allow you to get a general idea of how much it costs to close on a property. For example, on a $300,000 home using a first time homebuyer loan program, like FHA, between the downpayment and closing costs you will have to come up with $16,500-$19,500 to close on a property, much less than many first time buyers think! There are also ways to get some of your closing costs covered by the seller- ask me how!

Once you’ve strategized with your real estate agent and completed working towards your financial goals with your lender, you will be issued a pre-approval. A pre-approval is issued once the bank has done their due diligence into your financial profile and determines how much money they will allow you to borrow from them.

With pre-approval in hand, it’s time to get out home shopping!!

—–> Interested in working with me as your buyer’s agent? I’d love to help! Click here to set up a complimentary buyer consultation