If your first time home buyer resolution for 2012 is to become a first time home owner, then it’s important to realize an important fact: Buying your first home is a “road trip” not an event.
On this road trip you’re going places you’ve never been before and Google Maps can’t help you get there.
There are hundreds, maybe thousands of real estate websites that will tell you the first step on the path to homeownership is to contact a real estate agent or get pre-qualified for your first time home buyer loan.
Good advice, but it’s like starting on your road trip about one-third of the way through and you may not even be sure why you’re there, whether or not your car will make it, or what your final destination really looks like.
Like any other road trip, buying your first home requires careful planning and the first step in that plan is deciding if you’re really committed to taking the trip ALL the way to your destination.
The second step in this road trip, is getting a clear picture of your destination and there are two very important rules to remember when first time home buyers are selecting their destination:
- Rule #1 – There is no perfect house for you anywhere.
- Rule #2 – If you don’t find a perfect home with every item you want, remember Rule #1.
If your budget won’t get you to Hawaii, you can still enjoy a week on the beach in Santa Barbara.
Step Three on your path to homeownership is making sure once you’ve selected your destination is to make sure your “vehicle” doesn’t need any repairs.
So, go to http://annualcreditreport.com and get your free credit report and check for errors. Tip: Order a report for your minor children, we’re already seeing cases of identity theft of minors.
If you’ve followed our video series on first time home buyer credit, you know that at least 50% of credit reports contain errors.
Focus on the accuracy of the report and don’t worry about the scores because 1) they don’t provide a score 2) First time home buyer loans use a different scoring model than do your typical on-line report.
Taking the “road trip” to homeownership is not for everyone but remember this:
You have to live somewhere (unless it’s your parent’s guest room) and pay someone for the privilege. So if you’re renting now, you may be paying more than most homeowners and you’re investing in real estate, it’s just not yours.
If you’re looking for help to map out your road trip, contact us. We’ve helped thousands of first time home buyers and their families reach the destination that was right for them.
1st time buyer
Great points, thanks for sharing. In Charleston SC there are some great opportunities out there for first time buyers in today’s real estate market. Interest rates are so low and inventory is high. Getting pre-approved for your loan is a key first step in the home buying process, this will save a great deal of time and frustration. Once you have a firm handle on your loans options an effective search can begin. Buying a home is generally one of the largest financial decisions a person will ever make. Put a “buyer’s agent” to work and have the benefit of an experienced professional on your side. Your buyer’s agent is your advocate, your advisor, your negotiator, and your confidante throughout the buying process.
Dan, thanks for stopping by
For a first time home buyer to get the most enjoyment out of their “road trip they need a strong partnership between their Realtor
and Lender. Both need to know what it takes to make this journey a success.