Making the First Move: First Time Home Buyer
Whether it is for a new pair of running shoes, a car or a home, it's always best to do your research and create a plan, right?
It is never too early to start planning. Especially for a purchase as monumental as a home. About a year ago, I had the idea to start saving for a home that I would someday buy. I was clueless on where to begin. Zillow was overwhelming, my parents' friends seemed to know… too much and too little at the same time, and the market always seems daunting. A few months into the search, I found my ideal Lakeview apartment, a few blocks from the harbor. It had high ceilings, original hardwood floor and bathroom tile from the early 1900s, a deep soaking tub, laundry, and a big enough living room to host. Of course, I thought that this condo was in my price range, because Zillow told me it was. My estimated mortgage payment was only $1,800 (according to Zillow).
After a few more tours and an offer in, I received my cost breakdown from my loan officer. It turns out, I could afford this home if I paid off a portion of my student loans and a pesky credit card… in 30 days. There were words, terminology and facts that I did not understand fully, and hidden issues tied into my finances that I had never noticed. I was feeling incredibly stressed and overwhelmed about all of the information I had learned from my loan officer during this extremely quick home buying process, that I ultimately backed out and lost out on what could have been my dream home. I wish I had met with a loan officer months earlier to understand what I could truly afford before I began my search.
Without the proper education and planning behind the home buying process, everything felt impossible, intimidating and rushed.
If I had met with a loan officer at least 6 months before I even began looking at homes, I would have been able to ensure I had enough time, wiggle room in my finances, and overall financial guidance to successfully buy my first home.
We chatted with Emma Butler, Sr. Vice President of Neighborhood Loans to ask her when the right time to meet with a loan officer would be in the buying process.
“It's never too soon to have a conversation with myself or a loan officer in order to just get informed about what the process is about, to figure out kind of where your monthly payment should be and what that correlates as far as the purchase price. So the sooner people can do that and kind of wrap their head around it, I think the better. I mean, there's no downside. They don't need to go through the full pre-approval process right away.”
“You know and I tell people we can hold off on pulling their credit until they're ready and we can go through all the rest of the process.”
Don’t face heartbreak like I did the first time I tried to make the first move. Talk to a loan officer in your area to be sure you are set up for success.
Don’t want to make the first move on your own?
Chat with Emma Butler of Neighborhood Loans before taking your next steps.