As I started to plan my move to Jacksonville I was facing the same question as I did while living in Tampa… Do I want to purchase my first home? The answer is yes! Starting to own properties is a major goal of mine, but to be honest I didn’t know where to start or had the slightest idea on how to form a plan. Nevertheless I did some research and found 4 things to do when considering a home purchase.
Find A Location
The first step of your home purchasing journey is to find a location. Of course, this can change a bit when you are looking for the right home, but you need to know of a general area, first. For me, I just relocated to Jacksonville from the Tampa area, so I obviously know that Jacksonville is where I will be looking for a home. There are many things to consider when choosing the perfect location. Is it convenient to work? Shopping? Your favorite workout class? Do you have any friends or family members close by? Are you able to walk anywhere? How far is the interstate from your home? Depending on your needs and wants, your list might differ from mine, but most of the above questions are pretty standard to question. Afterall, if you are living in that home for a while, you will want the location to be the right fit!
Choose An Agent
Once you choose a large area to search in (or maybe you have a small area that you know you want to live in), it’s time to choose an agent! A good real estate agent will scour the market for homes that meet your needs and they will guide you through the negotiation and closing process. When speaking with potential agents, ask about their experience helping first-time home buyers in your market and how they plan to help you find a home. Coldwell Banker Vanguard Realty, Erin E. King MBA is an agent in the Jacksonville, FL area that specializes in historic homes AND has a ton of experience when it comes to helping first-time home buyers. He is a best of Zillow agent + a Ramsey Endorsed Local Real Estate Provider.
He is also a wealth of knowledge and walks his clients along each step of the way. An example of this is below – this is his buyers roadmap. That’s just one example of how he helps his clients along the journey of buying a home. He also offers free consultations. He says, “Are you trying to get in to a new home and need to sell your current home? Learn how to make this complex set of transactions work for you. No obligations or fees.” I’ve been looking around Jacksonville since I got here and there are beautiful homes for sale in Riverside. I can’t wait to check out that market more!
Get Pre-Approved
A mortgage pre-approval is a lender’s offer to loan you a certain amount of money under specific terms. Having a pre-approval letter shows home sellers (and your real estate agent) that you are a serious buyer. It can definitely give you an edge over home shoppers who haven’t taken this step yet. Apply for pre-approval whenever you’re ready to start home shopping – don’t wait until you find a home that you love. When you go to get pre-approved, your lender will pull your credit history and review documents to verify your income, assets and debt. Applying for pre-approval from more than one lender to shop rates shouldn’t hurt your credit score as long as you apply for them within a limited time frame, such as 30 days, so feel free to shop around and find the best deal and rates.
Start Saving Early
Last but not least, start saving for the home buying process as early as possible. It is expensive to buy and then maintain a home…but from what I’ve heard, it’s also very worth it! Not sure how much you’ll need for the buying process? Here are a few things to save up for-
- Down payment: Your down payment requirement will depend on the type of mortgage you choose and the lender. Some conventional loans aimed at first-time home buyers with excellent credit allow as little as 3% down. But even a small down payment can be challenging to save. For example, a 3% down payment on a $300,000 home is $9,000. You can also choose to pay less upfront, but then you will be hit with private mortgage insurance (PMI) on each bill going forward, which adds up.
- Closing costs: These are the fees and expenses you pay to finalize your mortgage, and they typically range from 2% to 5% of the loan amount. You can ask the seller to pay a portion of your closing costs, and you can save on some expenses, such as home inspections, by shopping around.
- Move-in expenses: You’ll need some cash after the home purchase. Set some money aside for immediate home repairs, upgrades, and furnishings. If you need to make a large purchase, wait until after you sign the papers and close on your home!
So let me know if you’re in the process of purchasing your first home or have it as a near goal! Also stay tuned to the blog for more home content. I plan to share decor, cooking, and ways to make your home a sanctuary! You can check out 3 easy ways to customize your home in the meantime.