Buyer's Preliminary Checklist

For most people buying their first home is quite an adventure and if you are not properly prepared and educated in the process, it can be a nightmare. Hopefully here at Realty Mankato, we can help you get a little familiar with the Real Estate industry before you make any moves.

Below are a few things you should consider before you even start looking at potential homes:

What is your buying time frame and plan for the next five years?

If you are planning on purchasing a home, do yourself a favor and start looking at least 3 months before you have to. If you start, for example, a month before your lease is up on your apartment you are most likely not going to even find a home that interests you let alone go through the whole transaction process.Purchasing a home is a major decision, and you should be ready to stay there for at least 2-5 years. Depending on market conditions, you could be there longer.

Are you willing to compromise?

For most of us, our first home is not going to be the dream home we've always wanted. You have to be ready to sacrifice some amenities to stay in your price range.

Are your finances in order?

This is probably the biggest question for most first time home buyer's. You need to calculate how much you can afford each month. A good way to find out what kind of price range you will most likely be looking in check out our mortgage calculators. While your checking on that, how's your credit score look? This can be a major factor in how much you can get approved for when you apply for your loan.If you've been thinking about buying a home for awhile, you should have been saving up for a downpayment. Most lenders require 10-20% down to qualify for a conventional loan.

Get Pre-Qualified.

One of the first things a Real Estate Agent will ask you is if you are pre-qualified, and how much you are pre-qualified for. Doing this before you start your search for a home will expedite the process and let you know what price range you should stick to. 

If you are moving from an apartment or other renting/leasing living situation, you need to keep in mind that you most likely haven't been paying all of your utilities, and other erraneous costs. When you buy a home be prepared to pay for things like garbage, heat, mortgage insurance, homeowner's insurance, property taxes, etc.