5 Must Do Things Before Buying A Home

 5 Must Do Things Before Buying A Home

The prospect of buying a home, whether you’re a first-time buyer or a seasoned veteran can be a daunting project. Especially if you’re new to the market, you’re filled with questions, confusion and possibly even dread, not knowing how to navigate a seemingly complicated housing market. I’m here to help you get the process started if you’re looking to buy a home in Tacoma or Gig Harbor or anywhere in Pierce County. And even if you’re looking elsewhere, these steps are applicable anywhere.

 

You want to get a handle on your credit score. There are lots of free services out there to access a free credit report. Ensuring you don’t have any derogatory marks against you in the form of late payments or worse, can help you get your score higher. Age of credit, amount of credit used, diversity of credit, on-time payments and other factors can play a sizable role in how your credit score is calculated. The reason it’s so important, is mortgage lenders use your score to evaluate their risk loaning you a substantial amount of money. Your previous repayment history speaks to your discipline with spending and repayment. The more disciplined you are, the better credit risk you are. If you are unsure about how to repair your credit, if you do have issues, please contact me for help connecting with a reputable credit repair service. 

2. One of the most important things I did when I bought my first home, was to create a savings plan. Buying a home can be very expensive. It’s not just the down payment which can be anywhere from 3%-30% depending on your means. Mortgage closing costs can be about 2% of the price of the home. Inspection and Appraisal can easily run you $1500 combined. And since laws in Washington changed at the beginning of 2024 regarding real estate broker compensation, you may need to pay your buyers agent if the seller is not offering a commission. All this translates into making a plan well ahead of buying a home to ensure you have enough in savings to make it happen. Setting a realistic budget per month to help you funnel spending money into savings money is critical to getting you on the path to homeownership. Your mortgage lender or Realtor could actually be a good resource to help you in this process. 

3. Making a decision on a mortgage lender isn’t as simple as walking into a bank and sitting down with an absolute stranger. I always recommend speaking with your agent or a family member or friend who has a quality recommendation. Just like agents, their are many mortgage lenders in the market. Finding someone who is trustworthy, competitive, communicative and hard-working is key. You want someone who’s willing to partner with you in the process to help you achieve your homeownership goals. Most lenders will help you back into the financials needed to make your purchase a reality. They’ll likely give you a plan to follow and give you helpful advice along the way. Oftentimes your agent has great recommendations because they work with the lenders every day and have a keen sense if who would be best to use. Lean into your relationships to find the right person, instead of relying on Google, or the cheapest option. You’ll be glad you did.

4. Begin the preliminary process of deciding on a house or condominium. Knowing the kind of home you want and can afford will help you make an informed decision. Understanding what prices are in your area and how the market is moving is also critically important. You don’t want to have high expectations and be disappointed by what’s in your price range or what’s available. A house comes with added responsibility like additional maintenance, yard work, utility service and added security. A condominium can often be “lock n leave”, meaning it may be a lower profile property for security reasons. You also rarely have landscaping or roofing to do. Many of the costs of a condominium are built into the monthly fee, which you may not find in a house. Understanding how you want to live will help you decide where you want to live. 

5. Lastly, as I touched on above, set your expectations realistically. Don’t look at homes priced above your budget, only to feel disappointed with anything in your budget. And know that almost every home will still require annual reinvestment, maintenance and upkeep. That’s the cost of being a homeowner. Buying a home in Gig Harbor means removing moss from the roof, or making sure rain water doesn’t pool next to or under your home. Buying a home in Tacoma may mean purchasing a historical home which oftentimes requires ample maintenance and expensive upkeep. Older homes have older problems often costing more money. Setting your expectation upfront about that reinvestment can take some of the sting out of an expensive surprise. 

If you’re buying a home in Washington, don’t get caught without a plan. If you have questions about buying a home in Tacoma or anywhere in Pierce County, please contact me Erik Molzen at (206) 643-8845 or register at https://erikmolzen.bhhsnw.com