Buying is an incredibly exciting time, but if you’re new to the process or going in unprepared, it can be an equally overwhelming one. Having your ducks in a row — whether it’s your financials, the right documentation, or just being on the same page as your partner about what you like — can all save you unnecessary headaches. We’ve led countless clients through the buying process and have put together our best practices that can make your buying journey that much easier.
The time to begin saving for a house is not the same time you begin looking for a house. If you believe a home purchase to be on your horizon, it’s good to begin stashing your finances away as far as in advance as possible. This is especially true for first-time homebuyers. While you may get a break with a first-time buyer down payment rate, the more you can put toward your home, the better.
When considering how much to spend, you need to be looking at more than just the price tag on that pretty new construction you’ve been eyeing. When determining what fits your budget, you’ll want to remember to account for costs like taxes, homeowners’ insurance, HOA fees, and more. Do an inventory of your finances and decide what price range you need to look for in order to accommodate some of these additional expenses.
If you know you need to buy a house in the near future, avoid any unnecessary actions that could hurt your credit. Anything that’s considered a “hard hit” will work against you when trying to get approved for financing. The new car, fancy new anniversary ring, or line of credit will have to wait until you’re unpacking cardboard boxes in your new place.
There’s nothing worse than finding your dream home, only to lose it to another buyer who had their paperwork lined up and ready to go when you didn’t. You’ll first want to get pre-qualified, which will give you a concept of how much banks will be willing to lend you. Pre-approval is the second step, a conditional commitment to actually grant you the mortgage. If you want a seller to entertain your interest, it’s best to come with these ready so you can pull the trigger as soon as you’re ready.
Aside from budget, knowing what you do and don’t want in a home will help you limit your search, which can be otherwise overwhelming. Decide your make-or-break factors to help weed out some properties. Things like location, floorplan, lot size, year built, and more will help you and your agent zero in on the perfect home for you. If you’re looking at this list of to-dos and feeling a bit overwhelmed, we understand. The home purchasing process is a big one! Without an expert by your side, it can seem like a tidal wave that might sweep you away. At Montana Life, we’ve spent years leading first-time and repeat buyers through the buying process, from quaint townhomes to sprawling ranches. If you’re in need of a team who will look after your best interests through a transparent process, reach out to us. We’re ready to help.
Joe helped us find our dream home...after months of looking and a couple of other real estate agents with no luck he found us the house we wanted! i will never use another real estate agent as long as joe is around.