3 Tips to Becoming a Homeowner this Year

So you want to be a homeowner this year? It’s a crazy market, but it’s still open for everyone! Dip your toe or jump in to the exciting world of real estate!

Let me just say, when I purchased my first home back in 2019, I had no idea where to start. The process SEEMS complicated, and I was nervous of doing something stupid with what little money I had! Luckily, we found an agent to help guide us in the process. He set us up with a lender who took care of the financial side of things, and then led us along the rest of the process. Not as hard as I thought!

So here is where YOU should start if you are thinking about homeownership this year!

1. Find a real estate agent you trust!

It’s important to work with an experienced and knowledgable realtor, someone who communicates well and understands you. If you’re going to work with a real estate agent, your personalities need to be compatible.

And I’ll also say this: as a buyer, you typically do not pay real estate commission. The seller typically pays real estate commission at closing which gets divided up between seller’s agent and buyer’s agent. So there is really no reason why you shouldn’t have representation and guidance in this process as a buyer!

2. Work with a reputable lender.

Your real estate agent should give you a list of preferred lenders to choose from (you also have the option to use your own, just be sure you choose someone qualified!). Brokers can shop around for you and often get you the best deals. If you want to go through your bank or credit union, at least get another quote from a mortgage broker to compare. Typically, you have a number of days for your credit to be run by multiple lenders for the same mortgage and it will only impact your score as just running it once!

3. Get your finances in order.

To get prequalified, you'll give your lender basic information about your debt, credit, income, assets, and overall financial situation. The lender will then decide if you can be approved for a loan up to a certain amount. You’ll also need to save enough for a down payment, build your credit, and figure out your budget. As a homebuyer, it's crucial to have your finances set and a pre-approval letter in hand so the sellers know you are serious and ready to buy.

And that’s all you need to begin! Easier than you thought, right?