Your 2021 guide to homeownership
2020 was a tough year for many, in fact, we are still making our way out of those troubling times for the most part. 2021 began with a feeling of optimism, momentum and excitement within our industry. The previous year's unprecedented trends with rates being the lowest they ever were as well as the uptick in individuals leaving the big cities and working from home in more suburban areas showed that home purchases were not going away or slowing down anytime soon.
Now, we get to where we are now in 2021. Many are still buying and refinancing their homes to capitalize on the lasting momentum from the last year but what does this mean for you as a new potential homeowner? How do you navigate the housing market this year? We can answer these questions for you here in this 2021 homeownership guide!
Getting Started with Homeownership
Just like years past, homeownership goals and scenarios are always based on your income and ability to be able to pay your mortgage every month. With that said, step one involves getting started with one of our mortgage professionals. We will kindly point you in the right direction if you do not have access to any Realtors because we partner with many in our area and we love the lasting relationships we have with each one!
When you work with us, we help make sure the process is easier because the paperwork, disclosures and the process itself can be sometimes long and even confusing. Do not worry, we are able to take care of you because we help reduce the time you have to worry about the process and make sure that we get you into your next home quickly. We also like to be transparent and honest with you as a borrower, we make sure we get you into the right frame of mind at the price points you are able to afford so that you do not feel discouraged if you happen to fall in love with a home that might be outside of your price range.
Preparing for the Process
The best and most practical thing you can do as a future homeowner is to start budgeting and saving. When we get down to the fine details of what you can qualify for, we love to see that you have money in your account that can go towards your down payment costs as well as taxes. We will already know that you can afford the monthly payments, but it is always the initial down payments that push first time homebuyers into the tricky spot of being unable to purchase.
If you are already in a spot to start the home search and are looking to buy soon, get started with us right now!
Make sure you get a good general picture of what your credit score might be before you sit down with us. Credit scores are also an essential portion of the pre-approval process and can play a role in the amount you can qualify for.
When you talk to our mortgage professionals, make sure you ask (unless they share with you first) what mortgage programs you qualify for! Organize your savings and budget so that you are able to hit the ground running on obtaining a mortgage.
Get Pre-Approved
Whenever you are ready, we are here to get you pre-approved so you can start shopping for homes! What does a strong mortgage pre-approval do? It gives you leverage when you find yourself in a bidding war with multiple buyers.
To become pre-approved, your lender will need:
Your full name
Date of birth
Current address
SSN
Current assets for a down payment
Bank account balance
Employer, name, address, position, years on the job
Income
Find the Right Home for You
Because purchasing a home is one of the biggest financial decisions you will make, you will want to walk through all your wants and needs for your home! These lists can change as you house hunt because what you think you want and need and what you actually want or need can change significantly, which will impact what you are going to get preapproved for.
Some examples of wants and needs:
School district
Home size
Home systems
Home features
Amenities
Payments
Transportation
Location
Submit Your Offer
Find your perfect home? Thats a call for congratulations...but first, you will have to have your Realtor submit an offer in. If your offer gets accepted, you and the seller will officially get into a contract for selling the property and you can be well on your way to owning the home.
Time to Close It Out
Once the offer is accepted, that is where we make sure we are putting in the extra work and hours to make sure all the documents and necessary conditions are met for the deal to make it through all it's checkpoints. Remember, a deal is seen by a variety of parties and while all you might be responsible for is the down payments and maybe paying for an inspection, make sure you, your Realtor, your mortgage professional and all other parties involved are working like a well oiled machine to close out the deal.
Some other things you can do in the mean time are:
Keep your files from the home purchase in a safe place
Ask your lender or Realtor any question you may have
Set up new utilities in your name
Meet your neighbors
Review HOA policies and rules if any are necessary
Once all is said and done, you will get the keys to your next home and be officially called homeowners! We cannot wait to work with you in the process as well as celebrate with you when everything comes together. We like to make sure you are informed along the way at every pivotal moment and will make sure to remind you of anything else you may need if you forget.
Ready to get started? Start with us right now!
