First Time Home Buyer? What You NEED To Know!
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Hey guys! For those of you who don’t know me, I’m Brendin DeVisser, a real estate agent in West Michigan! I’m 25 and I’m the founder of The DeVisser Group with Five Star Lakeshore which consists of other real estate agents and my marketer.
My goal here is to quickly and simply, help you through the process of buying your first home! I know it can sound intimidating and stressful, however, if you surround yourself with professionals you can trust, that stress and intimidation will disappear!
I was 19 when I first invested in real estate. Crazy right? Was I scared? Nah. I’m a big tough man and I can handle all this stressful money stuff. I’m kidding. Of course, I was scared!I was putting a lot of money into something that would eventually be mine, but right now felt like it was burning a hole in my wallet. However, with the right guidance from experts I trusted, I was able to purchase a duplex, rent it out and start paying it off.
You’re buying your first home, or you’re thinking about it. Well, now is the time to do it! The real estate market is still hot but it won’t be forever. Interest rates will rise and so will the prices of homes.
So, where do you start?
You contact someone like us. A real estate team you can trust to guide you and prepare you for what is ahead. If they’re anything like us, they will be there to answer any questions you have, anytime. You want to prevent as many conflicts from arising as possible and that is the agent’s job.
They can refer you to a bank or lender they rely on to check your credit score to see if you’re capable of getting a loan and eventually approval to buy a home.
What’s a credit score?
Ahh, the dreaded credit score. If you’re afraid of it, it’s for one of three reasons.
- You don’t know what it is, therefore you’re afraid of the unknown.
- You don’t have one.
- You have a bad one.
First of all, what is a credit score?
Simply put, a credit score is something you receive and earn by making a payment on time and for a period of time. (Examples: Phone, car, rent etc.)
Secondly, how do I improve my credit score?
- Increase your points by paying in full and on time
- 850 is a perfect score
- Earning a perfect score gives you the best possible interest rate for purchasing your home
- Accomplishing this proves to a lender/bank you’re responsible
- If you have zero credit it will be very difficult in most instances to get an approved loan for a home
- This process is similar to a car loan if you’ve had one, but we are generally talking a bigger loan, which means more requirements.
- Consistent payments for at least 6 months is what lenders are looking for
Keeping this up and being responsible with your money and payments will offer an easier time buying a home later on.
Do you have to be Pre-Approved to buy a home?
Yes, unless you’re paying in cash.
The preapproval letter tells us you are ready to buy a home
To Rent or to Buy?
This is the question I get all the time.
If you plan on staying where you are for a short period of time, renting could be your best option. However, if you plan on settling down in the area for several years, investing in a home, in my opinion, is the best way to go. Then you can add equity (or real property value) instead of paying rent for something you don’t (and won’t) own.
It’s different for everyone, so make sure you’re talking to a professional you trust to figure out what’s best for you and your situation!
Some Challenges I Ran Into Buying My First Home
As I mentioned before, I was 19 when I first bought my duplex. I was taught to use cash for everything so, if you were paying attention, you know what that means. My credit score was NOT perfect, which made it difficult to take out a loan and buy my first home. Learn from my uneducated 19-year-old self and start working on that credit score! Find people you trust and search for a worthy investment!
These simple steps are crucial as a first time home buyer! I hope this was helpful and if you have any questions feel free to contact us. You can find us on almost every social media platform to learn more about real estate.
Article Contributed By: Brendin DeVisser