Preparing For a Home Purchase
BY KAPINA LANSDALE
I’m so excited to be writing this blog post today because what we’ll be talking about is one of THE MOST COMMON things I get asked by first-time buyers who are trying to prepare for that first home purchase.
Don’t get me wrong, I LOVE getting DM’s on Instagram asking me what my best tips are for someone thinking about buying a home in the next year or two. But since I’m finally writing them out in a blog post, I’ll be able to direct them right here!
So without further ado, let’s get into these 5 things you can do to prepare for buying a home!
“As a Real Estate Professional, I strive to not only guide you through, but also educate you during this transaction.“
1. CREDIT
There’s a good reason why this is listed as the first thing to do. Credit repair is something that can delay your home purchase 6 months or longer so I’d rather be proactive “get your ducks in a row” and check it upfront rather than wait too long.
But here’s the thing, when you pull an Equifax or TransUnion credit report online, the algorithm they use to calculate your score is different than the algorithm a mortgage lender will use to qualify you for a loan. Keep in mind that most loan programs require a credit score between 580-660.
However, I still want you to check your credit online because it will give you an approximate idea of where your credit stands right now and what you may need to work on before buying a home. I recommend using Credit Karma or Credit Sesame to check your credit score as it’s a safe, secure, and informative websites.
2. LOCATIONS
I’m sure you’ve likely heard real estate is all about “location, location, location” right? Well, it’s for good reason! I mean, when you think about it, you could change almost everything about a home except for its location.
So, start researching the areas you might want to buy in for a few reasons. First, you may like a specific area but find out it’s out of your price range (or even under budget). Second, if you have school-aged children, you’ll likely want to know how the school ratings are. Third, you may discover an area you hadn’t considered before that fits well into your budget.
It’s best to do this ahead of time so when you actually do start viewing homes either in person or online, you can narrow down to a specific area and find that perfect home quicker!
3. WANTS + NEEDS
It does you no good to start looking for something when you have no idea what you’re looking for, right?
Create a list of things you NEED in your new home. This could be something like the number of bedrooms or bathrooms, location, or lot size. These will be the items that will be non-negotiable for whatever home you buy.
Next, make a list of things you WANT in a home but ultimately you could go without and aren’t deal breakers. This could be like a pool, particular color cabinets, or landscaping.
Your wants will kind of be a special bonus! Like it’s not the end of the world if you don’t have it because you could potentially add it later but having it is like icing on the cake.
Be sure to share this list with your REALTOR® so they may have an general idea of the type of home you’re looking for and save you time by eliminating those that don’t meet your needs.
4. SAVE MONEY
While you don’t need tens of thousands of dollars to buy a home these days, you do need to have a little money saved up to cover a few expenses.
I always tell people to shoot for at least $2500 in the bank before you buy a home. Having at least $2500 will cover your earnest money deposit and your home inspection.
Other expenses like your closing costs and down payment can be paid for in other creative ways but if you have the ability to pay for your own closing costs and have some cash to put down, it never hurts.
Start putting money away in a savings account, a piggy bank, under the mattress, or whatever your preferred method is each month so by the time you start the home buying process, you have some cash available. If you need some ways to start saving here are some Money Saving Tips.
5. CONSULT
You didn’t think you’d get through this post without me telling you to talk to a REALTOR® or lender, did you? Good 😉
While there are a handful of things you can do to prepare for a home purchase without help, I highly suggest consulting with a REALTOR® or lender as early as 12 months out (YES – 12 MONTHS!)
I say this because a good REALTOR® or lender will be able to give you even more guidance and personalized instruction on how to prepare for buying a home. This includes things like access to a home search site, a credit repair checklist, and other tools + advice.
In my opinion, it is never too early to start the conversation with a real estate or finance professional but there definitely becomes a time when it’s too late. For example, let’s say your lease ends in 3 months and you want to buy a home. You reach out to a lender, start the loan application process, and then find out you have 6 months worth of credit repair that needs to be done before you can buy a home. Now you have to decide whether you want to pay through the nose for month-to-month rent or if you should renew for another year.
See what I mean by too late?
If you live on the Big Island and want a REALTOR® to chat with, my Instagram DM’s are always open! And even if you don’t live in Hawaii, I have REALTOR® partners across the United States that I can connect you with!
And that’s all five things! Whew!
I hope you guys find this helpful! I know when we bought our first home in 2015 (before I became a REALTOR®) we had no idea what we could be doing beforehand to prepare. And because of that, I’m now on a mission to educate + empower first-time home buyers everywhere!
Want a downloadable version of this checklist? Click here!
Make sure to follow me on Instagram for more home buying tips!
Looking to Buy a Home?
If you or someone you know is looking to buy a first home, please Contact me. I would be honored to help make home ownership a reality. For more helpful tips and island information Join my Newsletter and be the first to get notified on new updates.