Let’s face it, buying a home is the biggest purchase that most of us will make in our lifetime. It is an indication of success for many people. As a mortgage loan officer, who has spoken at countless engagements about budgeting, investing, home buying, and credit building, I know how pertinent it is to gather enough information to make the homebuying journey an enjoyable and stress-free experience. There is a truism that I like to use when speaking with people that are putting their proverbial ducks in a row–as it pertains to buying a home: “Anyone can buy a home with the right plan of execution.
Step 1. Motivation
In the era of trends and online marketing, the phrase “What is your WHY?” is overused, but it still rings true. For example, why do you want to purchase a home or investment property? This process of identifying your motivation is vital because it provides a mental anchor, something that a person can utilize as a reference point. You will know when you have found your motivator by how it makes you feel whenever you think about it. The more intense the feeling, the more likely it will keep you on the path of your goal, and it will also be the base on how you proceed through the following steps.
Step 2. Education
A primary issue that causes a buyer’s hesitancy is the lack of education in the home buying process. I always recommend attending a workshop or speaking with a loan officer six months to a year before your desired purchase date. First, this gives a buyer ample time to remove some of the hurdles that tend to pup up, such as low credit scores, high debt-to-income ratio, employment history, etc. Secondly, the more you familiarize yourself with real estate jargon, the easier it will be to comprehend the information shown and explained. Lastly, as I mentioned before, this is the biggest purchase that you will probably make in your life, so information is critical. In my opinion, the borrower should be knowledgeable enough in the homebuying process to make purchasing a home as comfortable and stress-free as possible. Remember, If you are unsure about something, don’t be afraid to ask.
Step 3: Preparation
Anyone can buy a home with the right plan, motivation, and discipline to execute it. However, one problem that many homebuyers fall prey to is disqualifying themselves before they ever speak with a loan officer and receive the guidance necessary to formulate a plan. All loans are not the same. What works for one person may not work for you. It’s that simple. Everyone’s financial profile is different, therefore, routes to achieve the home buying objective will differ. Furthermore, when you and your loan officer map out the course of action ensure that your home buying plan is tailored to you. For example, if you need to improve your credit, you should learn what you need to do to increase your score before a specific date. If you need to save more money for your down payment and closing costs, you need to create a budgeting plan to track all your expenses and know exactly how much money you can put away per month.
In conclusion, it’s one thing to want to buy a home but having the right motivation, education, and preparation will ensure that the want becomes an actuality. Your Dream to Reality!
If you’re looking to create your homebuying plan contact me
