So, you’re ready to buy a home. You’re asking around and your family and friends have a lot of input, but you can’t help but to think...are they even remotely informed? And why are people who still rent apartments telling me how to buy a home? Shouldn’t I be talking to someone who does this for a living? Have no fear, your instincts are correct!
The Indy Home Pros Team has been ranked the #1 Real Estate Team in Indianapolis by The Indianapolis Business Journal for 4 years running, and we do not take this honor lightly. We specialize in ensuring your first time home buying process goes as smoothly and as magically as possible. Sure, there are hundreds of pieces of paper and documents that go into buying a home, and there should be; it’s the biggest purchase of your life! But we take care of that, that’s our job, not yours!
There can never be a complete guide to buying a home, because each home buying experience is unique to you. So below are some quality steps to take instead, and if followed, will get you through it!
1) Get Pre-Approved
All this means is that you call a mortgage broker (most likely your friend you see spamming your Facebook Feed that you have no idea what they do for a living, yes, that’s a mortgage broker) and give them some info about your life. i.e. how much money you make, how much debt you have, and they will come back to you, hopefully, with a money amount that you are able to safely spend on a home, say, $145,000.
2) Find and Hire a Realtor
Just because your Uncle Billy Bob is a realtor does not mean you have to use him. In fact, you likely shouldn’t. Didn’t he have one too many and fall off the porch last Christmas? Is that really who you want showing you houses? Plus how awkward will it be when you have to fire your own kin? Distance yourself slowly and pick an Indy Home Pro instead!
The market has changed since the 1990s and you need a realtor who is active and knows the current market and trends, knows all the relevant paperwork and how to execute it QUICKLY, has relationships in the industry with current title companies and so on and so forth, things you don’t need to think about because you are using a realtor!
That’s it! You’ve done your job, now let your Realtor do theirs! Just Kidding. Much more valuable info is below!
3) Don't eliminate homes that aren't up to par in your eyes as there are loans available to assist in renovating properties before you move in.
These are 203K loans that will allow for budgeting in renovations prior to close and can range from a simple bath or kitchen remodel to a full blown, top to bottom overhaul.
4) If financing is an issue, check with family to see if they can gift you funds for a down payment. This is allowed and can help new home buyers get things off the ground for your first time around.
5) Seek out lenders that can offer 0% down assistance to first time home buyers. Additionally, be aware that there are government loans that allow for the same type of financing as this in the form of a VA or USDA (rural) loan.
You’re setting out to buy a home and it’s likely one of the most exciting, and stressful, times of your life. And while it can be tempting to jump on a home search site that rhymes with pillow and go for it, you can now avoid the common pitfalls of first time homebuyers by naking sure you don’t commit any of these 5 mistakes that others have already made for you!
Like we said above, it can be tempting to get online and GO FOR IT! But then, you find it, the house of your dreams! BUT! By the time you find a realtor and try to set up a showing, someone else submitted an offer and it was accepted. But how? How were they so quick? They were Pre-Approved!
Getting Pre-Approved is the first, and arguably most important, step in the home buying process. Getting Pre-Approved is as simple as contacting a Mortgage Lender, filling out a form, and then seeing how much house you can afford based on things like your income, debt, savings, etc.!
Depending on where you are buying your home, your personal background, and various loan options; you could qualify for a first time home buyer program! This could mean a significantly lower down payment than the once standard 20%, lower monthly payments, and other saved costs!
Most new home buyers start their home search by looking at existing homes, and don’t ever consider building a new home because they think it’s too expensive. This is no longer the case these days! Companies like M/I homes offer SMART Options, meaning a brand new home in a community like Fisher’s can be yours for less than you think!
Checking your credit report to make sure it’s accurate. Lenders will go over your credit report with a fine tuned comb, so making sure everything on your report is correct is essential in getting the best loan rate and option for you. Pull your report from one of the major 3 companies, or use another credible site. Take it up with one of the 3 major companies if there is something on there you find incorrect.
Before your mortgage is final, do not mess with your credit! This means no applying for a new credit card, no booking that European vacation via credit, or anything else credit related. Applying for or adding new credit has the potential to lower your credit score, and this could in turn have an impact on your loan.
8313 W. 10th St
Indianapolis IN 46234
dennis@indyhomepros.com
317-316-8224