What Are the 4 Steps to Buying Your First Home?

Chicago Real Estate Podcast with Dave Auffarth

If you’re thinking about buying your first home, here are four steps you should follow to make it a successful purchase.

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What are the four steps to buying your first home?

First, hire an experienced Realtor. The guy next door or your brother’s girlfriend’s cousin who just got their real estate license might be hungry for your business, but that doesn’t mean they’re your best bet. An experienced agent knows things that brand-new agents don’t. They’ll also have important relationships in place that will help you in every phase of the purchase, including:

• Finding homes that aren’t even on the market yet and/or ones that might be slightly outside of your criteria but still worth considering.
• Leveraging industry relationships to get great deals or better terms.
• Managing appraisals and inspections and working through every step of the process to handle any issues that might pop up along the way.

Second, don’t be afraid to talk to multiple lenders. Your Realtor will most likely have several that they’ve worked with and can refer you to. You might also want to speak to loved ones and get a referral or two from someone they’ve worked with successfully. Keep in mind, each lender may have a different recommendation and/or knowledge of special loans that might work best for you.

Make your purchase a smooth one by following these four steps.

Third, mind your credit. Many people have no idea what their credit score is, but if you’re thinking about buying a home, knowledge is power. Different loans have different minimal credit scores and requirements. A good mortgage lender can advise you on the best option to raise your score. The earlier you learn your score and dive into the details with a qualified lender, the more time you have to address any issues you find. Your lender will spell out the do’s and don’ts on how to protect your credit. If you haven’t yet talked to a lender and you think you’re getting close to being purchase-ready, do not open any lines of credit. Finally, stay at your job. Are you not happy at your current job and thinking about changing jobs? If you’re thinking about buying a home, you might have to delay that plan. Part of your qualification for a mortgage will be based on your job history. Making a big change right before you buy or during the process will be problematic. Lenders always advise buyers to stay the course until the home is closed. If you have any questions about this topic or any other topic regarding real estate, please feel free to reach out to me. I look forward to helping you!