5 Steps to Start the First-Time Home Buying Process in Harford County
Are you wanting to buy your first home in Harford County, but don’t know where to start?
Here are all the steps you need to begin buying your first home, so you can feel confident and knowledgeable instead of totally overwhelmed and confused.
Make sure you read to the end for the most important action a first time homebuyer should take.
The main thing you need to figure out as a first-time homebuyer is, what do you actually want?
Step 1: Determine What Type of House You Are Interested In:
There are condos, townhouses, and single families. You may be interested in more than one type or all of them, which is ok, but it’s important to have your mind made up before starting the process.
Step 2: Figure out where you want to live:
Is there a distance to work you want to stay within? Is there an area that you aren’t comfortable with? Maybe you want a busier city-like atmosphere or maybe you want to be out in the country? Whatever it is, make sure this is something you have thought about prior to starting to look at homes. Some tips are to go and drive around areas to get a feel for them in person. Map the distance to your work from locations you like, and remember to think about rush hour and heavy traffic times when doing this. Research school systems and crime rates as well, if that concerns you.
Step 3: What are your non-negotiables when it comes to features of the house itself?:
Do you need no less than 3 bedrooms? Maybe a garage? Make sure you have thought about everything important to you, and write it down. Please remember though, if it is something you’re willing to overlook, do not consider it a non-negotiable because that could change the way your search for houses is being filtered. If you want 2 bathrooms but are willing to do the work to add another if a house only has 1, then make that your non-negotiable instead of saying it has to have 2 bathrooms. Also, if you are buying a home with a partner make sure you are BOTH making this list together. You will be amazed sometimes to see how conflicting your lists may be.
Step 4: Make financial decisions:
You will need to determine how much money you want to use for a down payment on a home as well as decide what the maximum is for your monthly payment amount. The down payment is the total amount of money you have currently that you would be able to put toward the purchase of the home. Make sure you aren’t using a number that would cause you to go broke though. You need to make sure you keep enough to have an emergency savings fund and money to live off of. The monthly payment is the amount the lender charges you, to pay back the loan each month. Completing a budget is a good way to determine the maximum monthly payment you can handle. One of the most important things you need to remember as a first-time homebuyer is that owning a house should not break you. You should be able to own a home and go out and have fun or go on vacations. It shouldn’t make you be living paycheck to paycheck.
Step 5: Get qualified with a lender:
The term “pre-qualified” is what a lender does to determine what price house you can afford. This is called your pre-approval amount. They will also be able to tell you an estimated monthly payment for that price. Finally, they will tell you what type of loan you are qualified for. This is super important because each type of loan has different requirements for the type of house you can purchase with it. The lender will be able to explain all of these things in detail to you so you understand.
Remember you can “shop” for a lender meaning sometimes it is good to get a couple of different options because each lender can have fees that are higher or lower than others and also different interest rates or loan types. You also want to pick one that you feel comfortable with and like talking to. You will be spending a lot of time with them during the purchase so you want to make sure it’s someone you like. If you need some recommendations for lenders I have three recommendations on my vendors page https://www.thelocalshometeam.com/vendors.
Once you have completed these steps you will be ready to look at houses! Now to recap:
1. Determine what type of house you are interested in buying.
2. Figure out where you want to live?
3. What are your non-negotiables when it comes to the features of the house itself?
4. How much money are you able to put down and what is the maximum monthly payment that you want to pay?
And finally, Step 5. Get pre-qualified with a lender.
Now that you know how to start the first-time home-buying process you should read my next blog “Should I Buy a Fixer-Upper for My First House?”
Something you will need to debate is whether or not you should buy a house that needs work for your first home so you’re making sure you are looking at all your options. I will walk you through the pros and cons so you can decide if it’s something you want to take on!