There are tons of checklists around for 1st time home buyers! No matter what list you use, number one on your list should always be about picking your agent.
Your agent is the person who can help you navigate every other step, including picking a lender. Think Quicken is going to be your best choice because you save a quarter point? Think again. In the current hyper-competitive market, you need a lender who is a nimble, responsive, real live person. A good realtor will explain this.
In fact, a listing agent might reject your offer outright because he or she knows you won't close in the 20 or 30 days you promise in your offer with a platform lender rather than a local mortgage broker.
Think you need 20% down to buy? You don't. Again, a good agent knows this and will connect you with a good lender who has a variety of loan programs to offer you.
An experienced and smart agent is always thinking three steps ahead and will guide you through all the other steps. Once you pick your agent, here is what we think the list looks like.
THE REAL LIST
MAKE SURE YOU'RE REALLY COMMITTED
You need to be really committed to the idea of buying a home. The simple process of buying a home right now requires a high level of commitment, but you also need to consider whether you're willing to take a roommate if anything happens to your job. Heck, you might have to move home with your parents and lease your property. What if you have to give up eating out for a while to save for your down payment or put aside an extra house payment or maintenance fund. Are you committed?
CREATE YOUR WISH LIST
Figure out your must have's. Are you working from home now? Is that forever or do you need to consider your commute? Do you need to commute your kids to school? Do you need a backyard for your dog? Or the dog you want? Put all the "things" on your list and consult your family and agent to come up with the really important stuff. A bad kitchen can be remodeled. A pool can be added later if the yard is big enough.
HOW MUCH CAN YOU AFFORD?
It's good to consider this number at the outset, but you will definitely get the real answer when you start talking to a lender. This is probably a good time to request your credit report from Experian and fix errors. Need credit repair? Your agent should be able to recommend somebody. You should also consider signing up for an Experian membership to monitor your credit throughout the home buying process.
GATHER DOCUMENTS
You will need pay stubs and tax returns. You also should gather bank and investment account statements for the last 90 days. Also compile your previous addresses going back 10 years, as well as your current landlord's contact information. Is family helping you buy? Introduce all decision-makers to your agent and ask them to start gathering their own documents.
FIND THAT LENDER
Start researching lenders. Ask your agent for three recommendations. You need somebody who listens to you and explains things in words you understand. Pro tip: Consider a mortgage broker rather than a conventional bank. Mortgage brokers usually have a deeper variety of programs and can be more nimble in the heat of escrow. Once you land on a lender, get your pre-qualification letter. Listing agents in Silicon Beach usually won't even bring your offer to their client without one.
ON YOUR MARK, GET SET....
And it's go time! It's hard to know at the outset if you're looking at a sprint or a marathon, but a good agent will have you ready before you see your first property. It's a wildly competitive world out there right now with historically low interest rates. Go look, stay flexible and be ready to move fast. And now you understand why we led with our #1. ?
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This post is from our “Buyer’s Edge” series, content designed to give real estate buyers in Silicon Beach an edge in a competitive residential real estate market. Read more about our full Buyer’s Edge program on our website. Want help buying real estate in Silicon Beach? Contact us, grab time on our calendar or read more Buyer Edge articles. Need help beyond Silicon Beach? Reach out and let us help you find a high caliber agent with hyperlocal expertise in that area.