The thought of buying your first home can be intimidating and something that you might want to put off until later in your life. You may have school and the resultant student loans, your job is not as secure as you would like and none of your friends are focused on buying a home either.
So the question of where do you start in your quest for home ownership is one that is very personal; everyone will have to find an answer that suits him or her uniquely. But if you are reading this you are probably wondering what the options are for a young person who is forward thinking enough to have ambitions of home ownership. So, what are some of the things that you can do to prepare yourself and to lay the ground work of this important future goal?
- Gather your financial records
- Find out where you are on the financial map
- Set some goals and start saving for costs and deposits
- Get pre approved by a lender
These Four Keys Really Just Mean Get Pre-Approved
The key to owning real estate is a demonstrated record of handling your finances responsibly. Not just the doing of it but having been seen to do so in official documents, that is all part of the discipline of earning more than you spend and saving difference. Over time even a small surplus saved can be parleyed into a substantial position in real estate.
Get a look at your credit reports. If you have not done so already go to the official website that, once every year, gives you free access to the reports of three of the largest credit reporting agencies. It is vitally important to know where you are and to formulate a plan to improve your credit records if their current condition might disqualify you from home ownership.
Homeowner Before You Know It
Start building relationships with banks and people who could be mentors to you. The critical point in preparing to go into the market is called pre approval and it is the one thing that will encourage professionals and sellers willing to help you. Although they may not say it they are actively looking for you to have made this critical step.
Getting pre approved is the signal that you are serious about hunting for a new home. Once you are, you will be greeted with much more enthusiasm by realtors and other professionals in the market. You may find that you do not have enough money or credit to qualify. The first step to changing that situation is being aware of it. If that is the case then you will need to formulate a plan. Some plans will take longer than others. It is at this point that you will find out exactly where you are in the marketplace.