It’s tough being a newbie at anything, right? Learning new lingo, how things are done and how you’ll do them is a little confusing at first. Once you get the hang of it, though, everything becomes clear and you can relax into whatever it is you’re learning.
The same holds true for the home-buying process; when you’ve never bought a home before it can be challenging to know where to start and tempting (but not wise) to jump into the process by looking at homes for sale.
So, let’s get you off to a good start – one that will lead to success when buying your first home.
The money stuff
Waiting for loan preapproval is brutal for those who have no idea where they stand on the credit scale. Those in the know, however, are far more confident, understand the loan process better and still have fingernails when the preapproval decision comes in.
Be a member of the latter group by ordering your credit from the “Big 3” credit reporting agencies, Trans Union, Experian and Equifax. By law, you are entitled to a free copy from each agency every year or if you’ve been turned down for credit.
Make sure you order your reports from AnnualCreditReport.com, the only company authorized by the government to provide these free reports.
When you get your reports, read over them carefully, keeping track of any problems you find. Each report will tell you how to file a dispute, so if you do find errors, even seemingly insignificant ones, file one. Even a small discrepancy can cause a big impact on your credit score.
Go over your finances, figuring out how much money comes in every month and how much goes out, paying close attention to recurring debt payments. The lender will do the same when it figures your debt-to-income ratio, or DTI.
If you want to calculate where you stand now, you’ll find information on how to determine your DTI on the Consumer Financial Protection Bureau’s website.
If your DTI is high, work on bringing it down by either bringing in more income or paying off some debt.
Stash some cash for your down payment, closing costs, home inspection fees and earnest money deposit. The National Association of Realtors recommends setting aside between 2 and 7 percent of the purchase price of a home just for closing costs, although I think 7 percent is rather high.
Shop for a mortgage
I’m happy to refer you to some of the lenders my clients commonly work with, or ask friends, family and colleagues for a referral to someone they enjoyed working with.
You’ll typically need the following documents when you meet with a lender to apply for a mortgage:
- If you are self-employed you’ll need tax returns otherwise, gather up your pay stubs and W2s.
- Copies of the bills you pay every month.
- Bank statements (including blank pages).
Document requirements vary depending on your personal situation and the lender, so ask for a complete list of what you’ll need to supply.
Make your wish list
Yay! The fun part. Now you can start thinking about that new home. What exactly do you want? Use these considerations when trying to figure it out:
- Nail down the location. Do you need to live near schools, downtown, public transportation? Do you want a neighborhood with lots of activity or something more serene? Kids nearby or few kids?
- What type of home do you want? Is there a particular architectural style? New or old?
- What are your must-haves when it comes to the interior of the home? Include things such as the number of bedrooms, bathrooms, square footage of the house.
- Describe your dream home. Once we know your budget, we can pare it down, but for now list everything you want in a home. Carpet or hardwood, gourmet kitchen, an office, a media room, gym, space to garden and views are something that might go on this list.
- Finally, name three features that you simply must have in your new home. These items are non-negotiable and they’ll be at the top of the list.
These are the basic steps in the home-buying process. Take steps 1 and 2 and then call us for help with your wish list.
Take the steps in order and you’ll be moving in no time!
Check out the link below to continue your journey on one of our signature Suburban Excursion Tours. Suburban Excursions Tours LINK
Email me for your free copies of Westchester Magazine’s Best of & Ultimate Guide. Include: Name, Address, Phone, Email.
Introduction to Jennifer Y. Ross & The Westchester Living Team at COMPASS
Jennifer comes from Platinum Drive to Compass as an experienced agent. She epitomized Platinum Drive Realty’s motto “I grew up here. I live here. I sell homes here” and she is known for providing each of her clients with an exceptional experience guided by her expert local knowledge. She works tirelessly to ensure each of her clients has a professional, enjoyable and successful Westchester community & home buying search or selling experience. She often remains very friendly with her clients and welcomes the opportunity to be an ongoing resource as they settle into Westchester Living. Every step she takes will embody her core principals; integrity can never be compromised, clients’ interests always come first and character, commitment, and passion truly matter. For her buyer clients, Jennifer looks forward to the opportunity of being “Your NYC to Westchester” guide and real estate broker. For her seller clients, Jennifer is proficient at implementing an aggressive marketing strategy in order to obtain the best price possible in a highly efficient and seamless manner. Jennifer thoroughly enjoys assisting buyer clients in navigating the landscape of the Westchester residential real estate market. She is skilled at enabling clients to define where they see opportunity & facilitating the process from initial search through closing. Jennifer was awarded the Platinum Drive Star Award for Outstanding Performance in Sales & Client Services in 2014 & Platinum Drive Realty’s Superstar Award for Excellence in Sales and Client Services 2015 & 2016 for her outstanding performance in sales and client service. In addition to her passion for local real estate, Jennifer has a firsthand understanding of home renovation and new construction. Upon moving from NYC to Scarsdale, she and her husband performed an extensive renovation on their first home. After completion, they moved onto their second project in Larchmont, a full house renovation and expansion. More recently she is active with local developers who specialize in new home construction, home expansions and renovations. Jennifer has the ability to understand a home’s full potential and can help clients find or create their dream home. Jennifer was the Manager of Platinum Drive Realty’s Larchmont Office. Jennifer was raised in Scarsdale. After graduating from Scarsdale High School, Jennifer received a BA in Child Study & Sociology from Tufts University and an MA in Language & Literacy from New York University. Jennifer currently lives in Larchmont with her husband, Michael, and their three sons, Braden, Devon & Zane. She specializes in communities in Southern Westchester with a concentrated focus on the Sound Shore Communities of Larchmont, Mamaroneck, Rye Neck, Rye, New Rochelle as well as her hometown of Scarsdale. Prior to real estate, Jennifer was a teacher in the Mamaroneck Public Schools. Jennifer has a deep understanding of the local school systems and the needs of young families.
Professional Associations & Accreditation
Jennifer is a Licensed Associate Real Estate Broker & has her Accredited Buyer Representative designation (ABR) and her Seller Representative Specialist designation (SRS). Jennifer is a member of the Hudson Gateway Association of Realtors & the National Association of Realtors. Jennifer’s Website: westchesterliving.hou
Powered by WPeMatico