Making the decision to transition from renting to owning a home is a major decision. But did you know that there are steps you can take to help make the process a smooth, seamless transition? At Howard Hanna Real Estate Services, we’re here to help make your dreams of becoming a homeowner a reality. Here are seven steps you should take before you transition from a renter to an owner.
1. Evaluate Your Finances
The first thing you want to do is review your credit score, your debt-to-income ratio and your overall financial health. All of these elements will be used to determine your loan eligibility and interest rate. You’ll want to create a budget to understand what you can and can’t afford. This goes beyond your monthly mortgage, but also include taxes, insurance and maintenance.
2. Save for a Down Payment and Closing Costs
Most conventional loans require a down payment of between five and 20 percent, though some programs offer lower or even zero-down options. You’ll also need to budget for closing costs. These costs typically range from two to five percent of the home’s purchase price. Start saving early and explore assistance programs if eligible.
3. Get Pre-Approved for a Mortgage
Before you begin house hunting, get pre-approved by a reputable lender. This shows sellers you’re a serious buyer. But it can also give you a clear picture of your price range, loan terms and monthly payments. Be ready to provide financial documents like pay stubs, tax returns and bank statements.
4. Define Your Home Needs vs. Wants
Make a list of your must-haves. This includes things such as location, number of bedrooms, commute time. In addition, make a list of the nice-to-haves. This stuff is things like a backyard or an updated kitchen. This can help narrow your search and makes the process less overwhelming. Consider your long-term lifestyle and how the home can meet future needs.
5. Find a Trusted Real Estate Agent
A knowledgeable real estate agent is invaluable, especially for first-time buyers. At Howard Hanna, our knowledgeable agents are here to help. Our Howard Hanna agents will help you navigate the market, schedule showings, negotiate offers and ensure your best interests are protected throughout the buying process.
6. Start House Hunting and Make an Offer
Once you’ve defined your criteria and have financing lined up, you can start touring homes. Be prepared to act quickly in competitive markets. When you find the right home, your Howard Hanna agent will help you make a strong, informed offer and negotiate on your behalf.
7. Complete the Purchase and Prepare to Move In
After your offer is accepted, you’ll move into the closing process. This process includes inspections, appraisals and final loan approval. Review documents carefully, and don’t hesitate to ask questions. Once everything is signed and the transaction is complete…congratulations, you’re a homeowner!
About Howard Hanna
Howard Hanna Real Estate Services proudly provides real estate, mortgage, title, and insurance services across 14 states. As the largest family-owned and -operated real estate brokerage in the United States, Howard Hanna operates more than 500 offices with 15,000 sales associates and staff. The company’s proprietary Hanna Success System helps its agents achieve 53% more business than agents at the top 1000 brokerages nationally. Learn more at www.HowardHanna.com.
