Becoming a home owner is for sure one of the top 3 proudest moments of my life! It is such a huge accomplishment and if you’re currently in the market to buy a home- CONGRATULATIONS! I am going to do my best to summarize tips and tricks that helped Patrick and I secure our dream home.
Tip 1: SAVE, SAVE, SAVE! I know it is easier said than done when there are so many bills and payments to make monthly but truly just start saving whatever you can. I hate to sound cliché but it is as easy as cutting out buying a few coffees a week. If you have an online shopping problem (according to Patrick I do ALTHOUGH I personally don’t see it as a problem) then just force yourself to close out of the browser before hitting purchase. I KNOW it is not easy. I did this for years before having enough saved for a home. If I can do it, so can you! Take small amounts from each of your paychecks and immediately transfer it into a savings. DO NOT touch your savings by any means, pretend it is not even there!
Tip 2: Work on your credit! I by no means have perfect credit, (thanks to late student loan payments on a stolen credit card, 6 years later and it still hurts to think about) however, I have worked my way up slowly but surely to a pretty decent score. There are many keys to building your credit that I truly am no expert in, but here are some tips that helped me. A. keep the spending limit low. B. This should go without saying but NEVER charge anything to your credit card that you can not immediately pay off. This is not free money and it is scary how quickly you can get yourself into debt. C. Make frequent timely payments.
Tip 3: Get preapproved! This is not the end all be all to what you can or can’t afford but at least you will have somewhat of an idea of where to start. This is fairly easy to figure out based on your income, credit score, debt, how much you want to put down etc.
Tip 4: Research your options! Did you know there are first-time home buyers assistance programs? These can offer great savings when it comes to down payment + interest rates! Make sure to do your homework and see which options would best fit your needs!
Tip 5: Find a great real estate agent! Patrick and I were lucky enough to use a family friend who fought tooth and nail for us! Agents can make or break your home buying experience. They will have all the expertise, experience, and connections! Luckily Patrick scoured Redfin every second of every day to make sure we saw every new listing, however, most agents will do that leg work for you! My advice would be to talk with a few agents and see which one understands your wants + needs best.
Tip 6: Go to open houses! Even if you aren’t crazy about a certain home I would take the time to view it. You will either be pleasantly surprised, or, you will be reassured that you know exactly what you DON’T want in a home. Patrick and I went to open houses for TWO years before placing an offer on a home. Of course this is not ideal for those who need to move quickly- we were not in any rush clearly!
Tip 7: Find a few neighborhoods + areas you like! It can be extremely overwhelming trying to narrow down a home in a particular city. If you are searching so many cities there is a pretty big chance you could be missing out on listings. This is just my personal opinion but I truly believe it is important to stick to a few areas or zip codes to help you from searching all over the place. Of course if location is not important for you then you can skip this step!
Tip 8: Make the offer! The housing market is hot right now and it is certainly a sellers market! I keep hearing stories about homes having over 30+ offers! It is insane. If you find a home you love and you are ready to pull the trigger you must move FAST! Patrick and I missed out on a home we loved because we did not get an offer in soon enough. I was so crushed but it was all meant to be because I love our home!
Tip 9: Write a letter! Piggy backing off my previous tip! With such a hot sellers market you truly need to stand out! Patrick and I wrote a letter to the seller explaining how much their home would mean to us. We touched a little on ourselves, our future plans, and how much we love the neighborhood. Little did I know that letter is the reason we are living in our home today. The sellers had an ALL CASH offer yet still went with me and Patrick. I know its cliché but letters or even personal videos can go a long way with certain sellers! Our letter was so meaningful to the previous owner of our home that she hand wrote a letter back and even brought over chocolate to the house! She was a real gem.
Tip 10: Have back up funds for closing costs + hidden fees! I wish someone told Patrick and I about all the unknown expenses that come with buying a home! We were not aware of some closing costs or the fact that there were “supplement taxes” that we owed MONTHS after moving in. Let me tell you they WERE NOT CHEAP either. Be prepared for hidden fees + funds once you own your home!