For many people, a new year evokes careful evaluation of the year ahead by making resolutions, considering ambitions, and making goals. If one of your goals for 2023 is to purchase your first home, it can be overwhelming to know where to start. There’s certainly nothing wrong with jumping right in and calling phone numbers on for sale signs, browsing through listing websites, or popping into open houses. However, I always recommend that my clients start instead by talking to a mortgage advisor. (If you’re looking for a good one, please reach out!)

Many people make the mistake of waiting to talk about finances after finding a house they love, and then find out they actually can’t afford it. A mortgage expert can help you start on the right foot by giving you a price range to look within. That way, you go into the process already knowing two of the three “moving targets” that affect your monthly mortgage payment amount:

• Interest rate at the time you get a contract signed. The lower your interest rate, the lower your monthly payments will be.
• How much money you put down. Some lenders will let you put down as little as 3% of the purchase price. So, for example, if you are buying a $400,000 house, you would need $12,000 cash for a 3% down payment. Of course, the more cash you put down, the lower your monthly payment.
• How much the house is. This variable is usually the one most within your control, which is why it’s so important to know up front how this amount changes your monthly mortgage payment amount.

Another reason I always point my clients first toward a loan officer? Once we’ve found ✨the one✨, a pre-approval from a reputable lender will help our offer jump to the top of the pile. Not only does it show a seller that you’re ready to buy, but it also tells them that you’ve been vetted by a lender and they’re willing to vouch for you as a borrower.

When the market is moving fast, it will be in your best interest to already have a pre-approval ready to go. But even in a slow or normal market, I still recommend figuring out the finance-side of the transaction first. That way, all three parties (real estate agent, borrower/buyer, and lender) can start on the same page.

While talking numbers might feel a bit overwhelming at the start, just know that real estate professionals like myself do this all the time and will walk with you through each step with recommendations, advice and information.

If you’re ready to start, feel free to call/text me at 317-379-7720 or email courtney@locallivinggroup.