Welcome! I’d like to assume you’re reading this because you want to learn more about buying a home. You’re working toward educating yourself so that you can be a homeowner and start that process of creating generational wealth. I LOVE that for you. So, let’s talk about it.

First, it is never too early to start the process. Owning a home one day could have JUST crossed your mind and you’ve ended up here. That’s great! Step one – complete. Okay, but really, let’s talk about what it takes to get from this thought to actually owning a home.

You’re going to need a good credit score. A minimum of 550 is what I’m aware of at the moment. Doesn’t have to be perfect, but the higher the better. I have excellent lender contacts who can help you work on that. If you have no credit tradelines, they can tell you what kinds of credit you need to get started. This could be opening a credit card and using it properly – meaning, using it sparingly so that your “credit utilization” is below 30%, and paying it off every month on time. They can also look at the current things on your credit report and tell you what, if anything, needs to be paid off, deleted, disputed, ignored, etc. The earlier we look into this, the quicker we can get you on the right track. Some of the loan options that can have lower down payments and interest rates will need at least a 620 credit score. Some down payment assistance (DPA) programs will require a 640 credit score. We’ll discuss that next.

You’re going to need some money. Let’s talk about some of the costs that go with buying a home. The biggest is typically the down payment. This can be as low as 3% of your purchase price depending on the loan product you are using. You’re going to need money for closing costs (home insurance, lending fees, mortgage insurance (if applicable), document fees, etc.) and that tends to be around 1-3% of your loan value. You’re also going to need money to pay for the general inspection up front, which is usually $400-$500. This could be higher if we need to have additional inspections added, like wood-destroying insects (WDI) or radon tests. You’ll also pay for the appraisal up front, which is usually $500-$750 right now.

But what if I don’t have the ability to save money because life is expensive and my job doesn’t pay enough?

I hear you. And that is not a fun situation to be in. So, there are two things to consider here…

1. If we are able to get you into a home anyway, are you going to be able to afford the maintenance that a home comes with? This is not to say you’re not ready, but it is something to consider. When you’re renting, most home maintenance falls to the landlord/owner of the property. When you own the place, it’s all on you. I recommend reviewing your budget to make sure you are prepared to have at least a little savings to prepare for those rough days. Some good news is that budgeting and home maintenance is teachable…you aren’t born with that knowledge. I can help you with both of those things. Anything I don’t know, I can find the right person who does know.

2. If you answered yes to that question – that you ARE prepared to handle the home maintenance – AWESOME. Love to see it. So, let’s talk about Down Payment Assistance (DPA) programs. There are programs that are set up as second liens, some are set up as grants, some are forgivable second mortgages, some are only paid back when you go to sell or refinance the house next. They all are meant to help people purchase a home when they don’t have a lot of liquid assets or income. These can be thousands of dollars. So, if that’s something you’d like to discuss more, reach out to me so we can connect you to the right lender for the program that will benefit you the most. There are programs for low income and high income. Don’t give up. Keep asking questions!

You’re going to need some thoughts along with your emotions. Home-buying can be stressful. I try to hold the stress on my shoulders so that you can enjoy the process. That said, we hopefully will find a place that feels like home for you. That’s important. We also have to keep in mind our checklist, though. I have a Needs Assessment that will help us figure out what we’re searching for. We’re going to keep using that information as we walk through each home. Ideally, we find one that feels good and works for you.

You’re going to need patience. A lot is going to happen at the same time. You’ll need the patience to hang tight while everyone else does their jobs (me, the lender, the title company, the attorneys, the inspector, the appraiser, etc.). Everyone involved will keep you updated on progress, but it can be stressful and we know that. You’ll also need patience because sometimes the right house isn’t on the market at the same time you start looking. We set up auto-searches so that we won’t miss any homes that could be perfect for you. When they hit, we try to be one of the first people to see the house so that we can potentially be the first offer on the table if it’s the right one…hence, the next topic.

You’re going to need speed. Once we find the house, we move quickly to get our offer to the seller. If it’s the right house, you will know and you probably won’t want to think much about it anyway. Then we have a bunch of deadlines. Let’s talk about those.

1. Earnest Money is usually the first deadline to meet. Typically 2-5 days from the date you have a binding agreement between you and the seller. That’s the date you have to get the agreed upon money to the attorney’s office (probably via wire transfer).

2. Due Diligence is probably our next deadline. We typically aim for 5-14 days, depending on the home conditions and how competitive the offer needs to be. This is when we get our inspections completed. This is also when we negotiate repairs (if any) with the seller. This is ALSO when you have the right to walk away for any reason or no reason.

3. Financing Contingency is next. This is used if you are getting a mortgage and you think there is any kind of chance you wouldn’t be approved for the loan. Ideally, we would have you fully approved prior to making offers, but sometimes timing isn’t on our side for that. This time period is usually 10-20 days from the date you have a binding agreement.

4. Appraisal Contingency. You’ve probably heard of this one and you’ve probably heard that people have been waiving it over the past few years. While, yes, it definitely makes your offer more attractive to the seller, if you don’t have a lot of cash we will not be waiving your appraisal contingency. What that contingency does is it gives you the ability to negotiate with the seller if the home doesn’t appraise for at least the contract value…AND if you can’t reach an agreement, you can walk away from the transaction and still get your earnest money back.

You’re going to need to be ready to celebrate. After you get through the pre-approval and approval of the mortgage, the showings, the offers, the negotiations, the inspections, the appraisal…after ALL THAT…you get to go to the closing table!! Woo! It’s exciting. I bring gifts to celebrate you and your accomplishments, and to thank you for choosing me as your agent. You get to sign a whole bunch of papers and then you get the KEYS TO YOUR HOME. Like, what a huge deal! So, of course, you should be ready to celebrate. You deserve it.

There are more definitions and more things that will happen, but we can definitely go into more detail when it’s time. I am happy to educate and share all the knowledge I have. Let’s not gatekeep homeownership.