3 Keys to Buying a Home

Buying Real Estate

Millennial home buyers are shifting from renting to buying real estate in 2015. Many turned to renting after the housing bubble popped in 2009. As many Millennials attitudes toward buying homes cooled considerably immediately following the housing crisis, the demand for rent became higher than ever. This demand drove rental prices and the cost of living expenses up in major cities across America. 

Also at that time, banks were reluctant to offer low or no down payment mortgages. This left many home buyers with less cash on hand, and few options for securing a loan. However, in the last few years, the real estate market has been stabilizing and new mortgage loan products have made owning a home affordable again.

Lenders have loosened requirements for applicants, and many people are taking advantages of government insured loan programs. Now more than ever, people are re-examining the benefits of owning a home. Following are 3 things you can do before buying a home that can help you find your road to real estate success. 

Find the Right Real Estate Agent

Never underestimate what it means to have the right real estate agent in your corner. Don’t just settle for the first real estate agent that you find. If you are not completely comfortable with any part of the process, make sure that it is addressed. You will want to find an agent who is experienced, can explain all the finer points of contracts or any other information you need to know in order to make your purchase go as smoothly as possible. You will be spending quite a bit of time with this person, so you should pick an agent that you like. It’s important to choose someone you have a good rapport with. I certainly would be happy to refer you to the right Realtor or you can search online for real estate agents. 

Get Pre-Qualified For a Loan

You should know your credit score, and get pre-qualified before you start shopping for a home. Most home buyers can afford more than they want to spend on mortgage payments, insurance payments, and property taxes. It’s best to find out what you can afford, and work back from there. Getting pre-qualified is simple. You will work with a mortgage lender who will help you find out what you can afford. Don’t rely solely on online calculators to do the math for you. Make sure you contact a qualified professional mortgage lender that can guide you in the right direction.

Make a Checklist 

Make a list of all the features and amenities you want from a home. Make sure you are realistic about space, location and your budget. Have two lists. Make one list of the bare necessities, and another for everything you’d like to have. There are sometimes tradeoffs that you will have to make, like more space vs proximity to restaurants and shopping destinations. With clear goals of what you want to look for when shopping for a home, you can really help yourself narrow down the options. Please check out ALL of The Housing Hour's specials on Loan Programs.