Searching for a home can be an exciting endeavor for first time buyers, but it also requires some planning and effort. When you know what steps to take before you begin the purchasing process, you’ll be better equipped to avoid any potential issues or unnecessary barriers. To help you get set up for success, we’ve put together 10 key considerations to help you prepare.
1. The Power of Pre-Approval
Pre-Approval will help you figure out your price range before you start house hunting to save valuable time and reduce stress. It also indicates to sellers that you are a financially vetted buyer, giving you a competitive edge.
Learn more: Why Pre-Approval is Even More Important This Year
2. Think About More than Just the Mortgage
Don’t forget to include taxes, homeowners insurance, utilities, and other costs when deciding on your final budget.
3. Don’t Search for Homes on Your Own
A knowledgeable real estate agent is priceless as they are familiar with specific locations and they can negotiate with the seller on your behalf.
4. Consider Your Credit Score
Know what your credit score looks like. If necessary, take steps to improve it as this can affect your approval and have an impact on what loan options are available to you.
5. Location, Location, Location
Take a close look at the schools in the area, as well as commute times, amenities, and upcoming developments as these will impact the property value. This is one example of how working with a real estate agent can be greatly beneficial.
6. Establish an Emergency Fund
When putting together your budget, don’t forget to set aside money for the unexpected. You’ll be happy you did when your hot water heater or air conditioning unit decides to quit, and you have funds readily available.
7. Prioritize Needs Over Wants
Before starting your home search, consider what is most important you you in a home and differentiate between needs and wants. Keep this list in mind or even carry it with you on your phone. That way you can remind yourself of essential must-haves vs. ideal features when viewing properties.
8. Stay Level-Headed
It’s easy to get caught up in the excitement when searching for a new home. If needed, take time to consider the right decision without emotions getting in the way— a decision that won’t disrupt your budget and hinder your long term financial goals.
9. The Value of a Home Inspection
Never skip the home inspection and be sure you are present for it. Not only will you avoid future repairs, you can get to know your home in more detail by asking the inspector specific questions. If the inspection reveals problems, you’ll either have more bargaining power with the seller, or you may choose to move on to a different home altogether.
Learn More: Michigan First Time Buyer Tips for Home Inspection
10. Evaluate Loan Options
Research different mortgage loans to find the best fit for your budget and goals. Partnering with an experienced lender can help reveal loan options and opportunities you weren’t even aware of. So as exciting as your home search can be, don’t jump into any loan without carefully evaluating your options.
Julie Krumholz from Superior National Bank
Julie Krumholz is has been helping Michigan first time homebuyers for over 30 years and has several loan programs available for various incomes and financial situations. She brings a wealth of experience to her clients and nothing makes her happier than seeing the face of a happy and excited customer at the closing table.
If you are looking for a mortgage lender in Michigan, call Julie from Superior National Bank today at: 586-382-5482 and let her help you navigate through the loan process and answer any questions you may have.
