Why Home Buying is So Stressful to Home Buyers
Buying a home is kind of like being in a talent show. If you sign up for one last minute, you’re not going to be prepared at all. It’s going to be chaotic and you’re not going to do a very good job. But if you give yourself time before the talent show, if you research and practice, it’s going to go much more smoothly. You need to think of home buying in the same way.
My job as a real estate expert is to help take some of the jitters out of the process. I understand that real estate feels like learning a new language at first. I want to make you comfortable with that language. If you’re comfortable with your real estate investments, you’ll be able to make more deals more confidently and grow your real estate empire. That’s what I want for you and why I’m so passionate about educating new real estate individuals.
Home buying is stressful because of three things.
You’re unsure of your budget.
You’re unsure of what you want.
You’re unsure of who to trust.
H2 - Let’s Start with Your Budget
You’re not going to buy anything if you don’t know how much money you have, how much it’s going to cost, how much you’re in for. All real estate starts with getting a pre-qualification lender. It doesn’t matter what kind of real estate. You need to answer the question, “What can you afford?”
Most people start with a realtor, but I encourage you to start with a lender. Your real estate agent cannot help you until you know what price point you’re comfortable with.
H3 - Get Pre Approval from a Lender
You can fill out the pre-application process here.
Talking to a licensed mortgage professional will help you see how you can afford a house. Maybe you need to increase your income a bit to get your debt-to-income ratio lower. Or you could pay off some credit cards and free up some cash. Getting connected with a licensed mortgage professional will help you create a three-month plan to get you ready for the home buying process.
Make sure to get a full pre-approval with a full credit pull and make sure the lender has at least gotten an automated underwriting approval as well.
Do not even start looking at homes until you’ve done this step in the process. If you fall in love with a $500,000 home but are only approved for a $425,000 home, nothing that you see in your price range is going to satisfy you. Starting with a price range you can afford when browsing homes keeps your expectations in check.
H3 - Decide What Budget You Want
Now it’s time to run some personal numbers. You know that according to a mortgage lender, you can borrow up to X amount of dollars, depending on what you qualify for. But does that work with your monthly budget?
Look at your cash flow and ask yourself, “How much do I want to be spending on a mortgage every month?” If you’re comfortable spending, let’s say, $1,500 on a mortgage, take that back to your broker. You can then get pre-approval for that set monthly amount, and see how much house it translates to.
H2 - How to Decide What You Want
The absolute hardest thing about the home buying process is deciding what exactly you want. Especially in today’s market, there are so many different choices. Narrowing down on your essentials for home buying will really help you choose the correct home for you.
If you’re looking at homes will pools, homes next to parks, and town homes next to work, and maybe you like this option over here, you’re not going to be prepared to buy. You’ll get overwhelmed and shut down. I’ve seen it happen too many times.
Having a clear idea of what you want will help you find the correct property. It’s helpful to think of this in pictures of what lifestyle you want.
The urban, walkable lifestyle.
The park and recreational lifestyle
Commuter lifestyle, with a pool
These represent different houses that you might invest in, but you have to decide what you want before you start shopping.
Looking into real estate is similar. You need to decide what type of product you’re going to invest in. Decide this before you start looking for homes.
If you need to narrow your focus, start with a lifestyle decision and go from there.
H2 - Building a Team that You Trust To Make the Right Decision
Buying a house can be stressful because you don’t know who to trust in terms of the process to get you settled into a home. And everyone has different advice based on their home buying experience. It’s important to keep in mind that everyone’s experience is different and is not going to reflect your home buying journey. While advice from friends and family means well, it should be taken with a large grain of salt.
The number one thing that I can recommend is to find a real estate agent that works specifically with the lifestyle product that you’re wanting to buy. You’re not going to have a good experience if you want a home in the suburbs, and the real estate agent you choose specializes in condos.
A good real estate agent is going to know what’s going on in their area. Get an agent that has a lot of good reviews online. Find someone that specializes in the house that you want. And then default to their advice over all your friends and family because they distinctly know the specific market that you’re buying into.
H2 - Conclusion
The home buying process is complicated, but it doesn’t have to be. You just need to know three things: what budget you want, what lifestyle you want, and who to trust. When you have a clear idea of your finances and future lifestyle, you can make better choices and develop a team that’s going to create a seamless real estate experience for you.