We’re finally nearing the end of 2021, a year full of new challenges. Even if you didn’t achieve all your goals and make 2021 YOUR year, we know 2022 holds many exciting opportunities. Mortgage rates remain at historic lows with rising home values - so it’s the perfect time to put buying your first home on your New Year’s resolutions list. It might seem like a lofty goal, but we’ve outlined a few steps that will set you on your way to checking it off your list.

1. Connect with a mortgage lender

This step might feel like skipping ahead a bit, but working with an experienced lender through your whole homebuying journey will help you ensure you’re taking the right steps to get into your dream home. Not only will they guide you through the mortgage process, they’ll help you determine how much home you can afford and connect you with a real estate agent to help you find the perfect home for you. Contacting a mortgage lender early on in the process will ensure that you’re set up for success, and they’ll have all the information you need to be informed and prepared at every step.

2. Get finances in order

This step has a few working parts, which might take a little bit of time to achieve. The first step is obtaining a qualified credit score. While there are many options for low credit score loan programs, you’ll still want to make sure you have an established history, consistent payments, and a proper debt-to-income ratio. Consistent income is also incredibly important, as it shows the lender that you will be able to regularly make payments on your mortgage. The last, and probably the biggest part of this step, is saving up for the purchase of your home. Traditionally, lenders have suggested having a 20% down payment on your mortgage to secure the best rate possible. Today, however, there are many programs that allow for low or even no down payment to purchase a home. As a first-time homebuyer, you may also qualify for down payment assistance, depending on your situation. There are more options than ever when it comes to low up-front cost programs, and your lender will help walk you through them and figure out what works best for you. It also might be a good idea to “test drive” your monthly mortgage payment to ensure that it’s manageable for the foreseeable future. Remember that there are also additional costs when buying a home - like closing, inspection, or moving fees - that you will also need to save for. This step takes time, but doing your due diligence here will set you up for success when you start working with your realtor.

3. Connect with a realtor

Connecting with a realtor once you’re ready to buy your home will help you narrow down your options quickly and effectively. Figure out what your “musts” are in your dream home and let the realtor work for you. Make sure you’re pre-qualified so they know your price range and can find you a home within your budget. Trust the process, and make sure you’re a little flexible during this step. You might be surprised to find that there are options for homes that you didn’t think about that are perfect for you. The right lender and realtor will act as your dream team on your homebuying journey. Make sure you choose people who mesh well with you and know the homebuying process in and out.

4. Start your home search

Once your realtor starts to find homes for you, it’s important to know exactly what you’re looking for as you view them. If a walk-in closet or jacuzzi tub is on your must-have list, make sure you make that clear with your realtor before you view any homes. As mentioned in the previous step, make sure you’re flexible on some of your musts so you have as many options as possible. Your realtor will help you prioritize homes and stay within your budget. Once you find your perfect home, your realtor and lender team will help you put in offers, counter offers, and walk you through the buying process.

2021 brought along a myriad of opportunities and challenges for all of us, but the new year has even more to offer. If you weren’t able to begin your homebuying journey in 2021, worry not! Mortgage rates are still at a historic low and as long as you’re working with a good team, you’ll likely be able to check it off your 2022 resolutions list. If you’re ready to get the process started, please reach out to an experienced lender at Flat Branch Home Loans!

How to Buy a Home in 2022