The Five Things You Need to Know Before Purchasing a Home. Part 1
The purpose of this guide is to introduce you to the process of purchasing a new home. It simplifies the process by breaking it up into five steps:
1. Figure out exactly what you want
2. Get pre-approved for a loan
3. Should I hire a real estate agent?
4. Find the right home
5. Get a home loan
By the end of this guide, you will have a deeper understanding of the home buying process.
1. FIGURE OUT EXACTLY WHAT YOU WANT
You want to purchase a new home, but do you know exactly what you want?
Before you start worrying about fixing your credit or getting pre-approved for a mortgage or having
enough money for a deposit, you need to determine if you are ready to purchase a new home.
To do this, you just need to ask yourself five simple questions.
A. What do you want?
• Do you want a larger home or a smaller home?
• How many bedrooms?
• How many bathrooms?
• How many stories?
• What other features do you want your home to have?
B. Why do you want it?
• Do you want to be closer to your workplace?
• Do you need more space to accommodate your growing family?
• Do you want better schools for your children?
• Are you simply tired of renting and would prefer to own your own place?
C. Where do you want it?
• What area of town do you want to live in?
• Do you prefer a gated community?
• Do you want to live in a residential area or in a more isolated area?
• Do you want to be close to schools, shopping, and major highways?
D. When do you want it?
• Do you want to move as soon as possible?
• In six months?
• In one year?
• If you found the right home at the right price today, would you make an offer?
E. How much can you afford to pay?
Analyze your financial situation and determine:
• Are you currently paying too much for housing?
• Are there any expenses you could cut back on or eliminate?
• Do you have enough money for a down payment and closing costs?
• Do you have any debts you need to pay off?
• Do you need to fix your credit?
• How much can you comfortably afford to pay every month?
Once you have answered these five simple questions, you will be ready to take the next step: getting pre-approved for a home loan. Donʼt start looking for a home until you have a home loan pre-approval.
Next newsletter we will talk about point #2: Get pre-approved for a loan.