Cracking the Code to First Time Home Buying

Ready to buy a home?

Home ownership is a dream for many people. It's also a daunting and nerve-wracking concept. It means commitment and responsibility, and is a major milestone in any person's life.

Before you sign that dotted line, or before you become overwhelmed by all the different decisions you have to make as a first-time home buyer, here are some things you have to know about buying your first home in Waukesha. 

1. Know your motivation. Take a moment and evaluate why you like to buy a home. Don't do it because other people have been prodding you to.

Are you buying because you're tired of your rent money disappearing without going to some sort of investment? Is it because you're planning to start a family? Is it because you've fallen in love with a certain property?

Discover your real reason for wanting a house, then decide if you are better off renting or if you would benefit from buying.

2. Do you have enough savings?

20% of a home's price is huge money, although you can lessen it to 10%. Either way, those amounts literally mean thousands of dollars and not many people have that much money in savings, especially if you haven't been in the workforce for long. 

Many first-time home-buyers seek financial assistance from their family members, but this is not always the case for everyone.

If this is not an option for you, you need to start working on a nest egg. Cut down any unnecessary expenses so you can add more to your savings. Review your monthly expenses and see which items you are spending more on.

Look at your current savings and emergency savings. Don't even dare buy a Waukesha property if you have no emergency savings, or you'll be in big trouble. 

3. Check your credit

You can't get a mortgage loan unless you are a "well-qualified buyer", and to be that, you must have a good credit score. That three-letter score holds the power to secure your future home.

The higher the score, the better the deal. A high score reflects you have been meeting your obligations on time, which the lenders perceive as a positive attribute and that you are more likely to pay your commitments.

Your credit history is important to the lenders because it indicates your debt-to-income ratio, how much money you owe on your car payment, university fee, credit cards and more.

If you find your credit score to be lower than 650, you need to start planning your monthly budget so you can pay off your debts. You may have to delay your plan of buying a home, but it's better that way than be in a major financial debt.

4. Secure a pre-approval

Before you go home shopping, you need to have an idea how much you can afford. That way you don't set up yourself for disappointment and look at homes that are way beyond your price range.

5. Find a Realtor®.

When you know how much you can afford, secure the help of a Realtor®. The agent will help you find the best properties and will be with you every step of the way from the showing, to the negotiation, until the time the property is yours.

6. Plan for all the costs. The biggest bulk of your money will go to the down payment, but you also have to consider the 'other costs' like repair, taxes, HOA fees, and other closing costs. After all, you’ll have to make your Waukesha home comfortable and convenient for you and your loved ones.

Achieve your dream of owning a home, but make sure that you are financially secure to avoid any major debts in the future.

Getting ready to buy a home? Call me, Kristin Johnston, at 414-254-6647. Let me help you find your dream home.

**In case you can not view this video here, please click the link below to view Cracking the Code to First Time Home Buying `on my YouTube channel: https://www.youtube.com/watch?v=Uq92VEh3Zbg&list=PLuFipRHseE_yh_POwwUQrjDP5CXqCBgt9&t=0s&index=18**