So many new buyers I talk to are ready to start the home buying process, yet they don’t know what step to take first. Most people think, “well, if I’m ready to buy a home I should start looking at what homes are available for me to purchase.”
This is a mistake.
Let me tell you why: how do you know what price range you can afford?
You see, most people approach buying their first home from a “shopping” perspective. That is, you walk into the store (read: neighborhood) see what types of goods they have (read: homes on the market) and then pick the ones you want before checking the price tag (read: listing price). Then people make the decision of whether or not they can afford that product or whether they are willing to pay that much for it.
This is backwards real estate home buying in mn, because looking for homes takes a lot of your time as a new homeowner.
It takes time to look at homes online, then setup the showings with your agent, tour the properties, and finally make an offer. If you go through all these steps before you know what you can realistically afford or are comfortable paying, you’ll be wasting many hours and probably get emotionally invested in something that that may not even be realistic for you.
I know for some people this might seem direct and maybe even catch you off guard, but it’s the truth.
So what’s the right first step? Getting Pre-approved with a reputable and knowledgeable loan officer.
Once you do this everything else falls into place. You’ll know your spending limits and payment comfort level, which will help you figure out what type of home you want and what areas you’re likely to find the right property for you.
Don’t have a Mortgage Lender yet? No problem.
If you’d like to start the process and at least know what your financial situation is, just email me to begin. We can recommend a couple very good lenders who will not only approve you for a loan, but also help you figure out which first time homebuyer programs you may qualify for. And here’s a hint: not every lender knows about these programs or even participates in them. Ours do, of course, and are more than happy to help you qualify for them with no obligation whatsoever!
So before you jump in head first, you should know how deep your pool is!
