The real estate market continues to be at the top of financial news with headlines ranging from supply shortages and rising interest rates. Although housing affordability continues to be a major challenge for buyers, a bit of good news is that first time homebuyers were responsible for 29% of sales in February, a 2% increase from the prior month. Are you thinking of joining the nearly 30% of homebuyers, but aren’t sure where to start? Buying a home can seem like a daunting task, especially if you are a first-time homebuyer. Don’t worry just follow these steps and you will be living in your new home before you know it.
- Check your credit score to determine whether you qualify for a mortgage and the interest rate lenders will offer. You are entitled to an annual free credit report, go to AnnualCreditReport.com. Also, from now until the end of the year, the government is allowing a weekly credit report, so take full advantage of this free service. Take this time to review the report and fix any errors or issues.
- Determine your budget and what you are comfortable with. Just because you may qualify for more, doesn’t mean it is right for you. Most buyers prefer not to be “married to a house payment” so they can travel and do other things.
- Find a trusted mortgage lender to get the best mortgage and mortgage rate. Once you are approved, a mortgage lender can give you a preapproval letter. A preapproval letter is a great tool when purchasing a home, because it lets real estate agents and sellers know you are serious and can give you an edge over other buyers that aren’t as prepared.
- Choose a real estate agent that will help you find the perfect home that meets your needs within your budget. Once you’ve decided on a home, an agent will guide you through the entire process from negotiation to the final closing process.
- Tips to help your real estate agent find the perfect home:
- What is important to you? Schools? Nearby recreational activities?
- Will this be a starter home or a forever home?
- Do you want to be within walking distance of amenities such as parks or grocery stores?
- Do you want to live in a neighborhood or prefer to have a larger lot?
First time home buying doesn’t have to be scary. Just follow the steps above and find real estate professionals that you can trust to help you throughout the entire process. Stutesman’s Action Realty can help you with all your real estate needs in Missouri and Kansas. Call today, 833.286.8400.
For more information about current housing statistics, visit the National Association of Realtorsâ.