How to Buy Your First Home
Interview with real estate agent Kate Fadden
Wondering if you should start looking for a home to buy after the big day? We sat down with real estate agent Kate Fadden and asked her advice for first time home owners.
Buying a house can be scary, and you might wonder if you are ready for this big of an investment. There are a few questions you should consider. How much can you afford each month? What kind of down payment ae you able to make? Speaking with a loan officer can help guide you through the process of figuring out a budget.
“If you are renting, chances are you can buy. Think about the pros/cons of renting vs. buying and see how you feel about them,” said Fadden.
Real estate is a great investment for a person. Renting can be beneficial in certain situations, but with renting your money is not going towards an investment.
“By renting, you are furthering someone else’s real estate goals and finances rather than creating your own,” said Fadden.
However, the market is always changing, so there is not an easy answer of when is a good time to start looking for a house. Make sure to consider these questions before looking for your dream home. What is the market doing in the area you want to buy? What do the interest rates currently look like? Do you have a clear idea of the house you want to purchase? Are you comfortable with the current budget you have?
If you decide you want to buy a house, you still might not know what you want in a house. Make a list of things you like about your current living situation and things you want to change. You should also consider the area. Work commute, school district and neighborhoods are all things you should think about. Keep your priorities in line and make sure you tell your real estate agent so they can find a house that best suits you.
“When it comes to your budget, stick to it! Make sure you have enough money budgeted for your earnest money deposit and closing costs,” said Fadden.
If you are buying as a couple make sure to keep both your interests in mind. Discuss both of your ‘deal breakers’ and ‘must haves.’ Keep on the same page about budgets and have regular ‘check ins’ to make sure the whole process goes smoothly for both of you.
Ask lots of questions while looking for a house. Remember that your real estate agent, your insurance provider and your mortgage lender are all experts in their field and are there to help you.
“Once you know what you are looking for, the next step is to find a mortgage lender that you want to work with,” said Fadden.
A good place to start is to ask your realtor who they recommend.
Once you choose your mortgage lender, you should get pre-approved so you know what your set budget should be. They can also provide you with a pre-approval letter, which can make you look more desirable to sellers.
If you happen to find your dream home, your agent will write up an offer for you and guide you through the process. It’s a good idea to get a home inspection if your offer gets accepted. Also if you are buying with a bank loan, your bank will order an appraisal of the house.
To contact Kate Fadden about taking the next steps towards purchasing your first home, go to kate-fadden.com.
Happy house hunting!