Buying a home should be fun, not stressful
When you are starting to think about buying your first home, there are a lot of things to consider. What is supposed to be an exciting time can oftentimes feel stressful. With that in mind, here are some ways to reduce the stress and get back to the excitement!
Get pre-approved!
By a human, not an online app or a computer system. Mortgage pre-approvals should take up to one hour (60 minutes, not the advertised 60 seconds). A pre-approval tells you your mortgage maximum (the highest approvable mortgage amount), provides an example payment, and introduces first time home buyers to interest rates, fine print, and all the options that a great mortgage should have (things like pre-payments to principle). We here to provide this service, at no cost to you!
Ask lots of questions!
This is the biggest financial decision of your life, ask lots and lots of questions. If you don’t get the answer you want, you are not working with the right people. Do some research but remember that Google is full of lots of positives and lots of negatives so get familiar with the concepts and ideas but be open to advice. We will work with you to figure out what type of mortgage rate, lender and fine print works for your situation.
Consider both fixed and variable rates.
Be open minded when thinking about rates. Each financial and personal situation is unique, as is each rate decision. You will be dating the rate and marrying the home – interest rates, both fixed and variable are most often offered in five years terms. So all rates, including fixed rate will fluctuate over the 25 year amortization of your mortgage. Considering if you may be transferred to a new city due to work, if there are family or life changes on the horizon, or if you may decided home ownership is not the right choice and may sell the home. Try to consider five year periods of time – what could and might happen to change your home ownership plans? For any home buyer who isn’t sure if the five year plan is rock solid – a variable rate is important. For any rental property – consider a variable interest rate as well. For longer term planning, family homes, dream homes, and those who feel confident in a five to ten year plan on home ownership fixed rates can be the right choice.
Build a team of highly competent specialist in the mortgage, real estate, and legal areas.
When you buy a home, you do not pay realty fees… your realtor’s services are free to you. The seller pays all realty fees…. you are literally obtaining the advice of a real estate expert at NO cost, so make sure you are choosing the right one. We work closely with a wide range of real estate professionals and would be happy to find the right match for you in terms of price point, area, type of home, and alignment. The same goes for home inspector and real estate lawyer. Surround yourself with professionals who have your best interests at heart.
Your bank does not care about you. I’m sorry, it’s true.
We know, we hear it daily… but I like my bank and I’m comfortable there. I’m sure you are but your bank does not have a single ounce of love or care for you. You are an account number. So don’t let loyalty stop you from connecting with a mortgage expert and finding the right mortgage solution. Your best fit might just be a mortgage at your bank, but if you only talk to you bank you will not know. Bank mortgage reps only offer one mortgage product and one set of rates, and their advice is biased to the brand they work for. A mortgage broker has no loyalty to any lender or product, so they are able to suggest a multitude of options for you.
Everyone is going to have an opinion.
You dad, your friend, your grandfather, or your aunt who used to be a real estate agent 20 years ago will have lots of advice on the bank they prefer, interest rates, picking a realtor, and even the type of house you should chose. Unless that family member is a licensed expert in the mortgage, real estate, appraisal, or banking world, take their advice with a grain of salt. Trust your gut – you will know what works best for you and your situation.
Make it fun and enjoyable!
If you are surrounded by the right people, and you feel confident in your decisions and knowledge the process of buying your first home will not be stressful. It will be busy, there will be meetings, and documents, and forms to sign. But you should not feel any anxiety or stress. The process should feel exciting and when you get your keys in hand you should only feel confidence and happiness that you made the right decisions.
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