First Time Home Buyers - Step 1

Wow, well first off thank you for taking a minute to read my blog. Each blog that you read will provide you with information on becoming a home owner. While this might be a scary though for most of you reading this I hope that through all my knowledge and insite you will feel more confident and in control of your future home buying future!

For my first blog I would like to share a bit about what you need to do before concidering to buy a home.

Home ownership is HUGE, let me say that again....HOME OWNERSHIP IS HUGE! Get the point? When you buy a home you are securing your financial future. You are buying something so valuable that later down the road, usualy 5+ years, you can increase your value by 20% at minimum! What does this translate too? Well let's say you buy a home that has a value of $100,000 in 5+ years you should see your value increase to at least $120,000! But before I get into this we should take a step back...

For the first step I want you to get a piece of paper and number it 1 through 10, yes we're going back to school pages. I want you to write down each of these questions and answer them honestly.

Here is a list of questions you should ask yourself...

1. How much do you pay for rent right now?

2. What is the total monthly payment amount of all the payments that show on your credit report? Do not include monthly payments like cell phone, insurance, phone, etc.

3. What is your currently gross (pre-taxed) monthly income?

4. How much do you have in your savings account? How much total savings elsewhere?

5. What payment amount would you be comfortable paying each month?

6. Have you started looking for homes yet? If yes, then where and what price ranges have you been looking at?

7. Are you currently working with a realtor?

8. When was the last time you checked your credit report for errors/accuracy? If it has been longer then 1 year go visit annualcreditreport.com and pull your credit. This web site works directly with all 3 credit bureus and is 100% free. when pulling your credit make sure to decline any of the paid offers, unless you want to sign up for their services. If you need help understanding your credit report see my blog title Credit 101 (soon to come).

9. What price range do you "think" you want to be in?

10. How long until you want to buy?

Now that you have this filled out I want you to hang it on your fridge or your bathroom mirror. Keep it somewhere that you will be able to see it every day. We will call this your homebuying info 101, the information that you provided here will be the begenning to your buying a home.

Congradulations! You have just started your journey to home ownership!

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