Where to Begin

Work with a real estate professional.  Tell them what you like and what you need, so he or she can let you know what to expect.  They will explain the process from getting pre-approved to how they will help you find properties.  Yes, you can look at many online websites such as Realtor.com or Zillow.com, but they will not have as many updated properties as the MLS (Multiple Listing Service) that only realtors have access to.  A realtor may also know of other realtors that have “pocket listings” that aren’t on the market yet, through networking or current listings within the company, that may give you (the client) an advantage.

 

 

Get Pre-Approved

This by far is one of the top priorities of this process.  How can you look for homes, if you don’t know how much you can afford?  Listing agents won’t even accept your offer unless you have a pre-approval letter unless you are buying the property all cash.  Consult with an experienced loan officer, so not only will you know how much you can afford, but also to walk you through the steps of the process.  The worst thing that can happen is to enter the process, go into escrow, and have your loan get declined, because of an inexperienced loan officer not explaining the “10 commandments of lending”.  You can lose your deposit and lose your home.

 

 

Have Realistic Expectations

Everyone wants a turnkey home in a perfect location.  Don’t expect to find that home, not have any competition for that home and getting under asking price.  If it is more than perfect, expect to bid high.  Remember, real estate is also in the same category as “Supply and Demand”.  If you don’t want to pay top dollar and get a better deal, look for properties that are less than perfect, whether it will need upgrading or whether the property is not in the ideal location you wanted.  Remember, real estate is an investment.  Just like any investment, if utilized properly, it can be a stepping stone to your dream home through equity growth.  Most people never buy their dream home on their first buy.  They end up buying their dream home, after living in one or more homes, after selling them and using the net proceeds as a bigger down payment.

 

 

 

Short Term vs. Long Term

Buying a home can be a wise financial investment if you buy right and hold your home for a long-term gain. Because of closing and moving cost, it is nearly impossible to buy a home and sell it immediately for a large gain. However, it is possible to sell the home after a few years with no capital gains tax and ideally make a profit.