12 Months Until Your First Home

Everything You Need to do to Prepare to Buy Your First Home

Listed below is everything you should do to prepare to buy your first home.

Month 1
Get a copy of your credit report. If there is anything that needs to be corrected, contact the credit agency. By law, you can check your credit report once a year for free. The reports do not come with your actual credit score. You may want to pay for that so that you have time to build up your score prior to applying for a loan. Read more about your credit report in our Understanding Your Credit Rating Resource.

Month 2
The next step is figuring out how much you can afford. It’s a general rule of thumb that lenders prefer a homeowner to spend about 36% or less of their gross monthly income on a mortgage payment. Use our mortgage calculator to get an idea of what you can afford.

Month 3
Figuring out what kind of home you want to buy is the next step. Creating a list of features that your home must have is a good idea. Then you can take this to your real estate agent when you are ready to start looking. You should also point out the features you can live without so that everyone is one the same page when your search begins.

Month 4
In month 4, you might want to consider driving through some of the neighborhoods that you’re interested in. A good idea is also talking to the neighbors to get more information about the specific neighborhood. And if you are interested in a particular house, driving by it before setting up a time to look inside can save you time if there is something outside that turns you off. For instance, driving by can tell you if the house is located on a busy street.

Month 5
The next step is finding the right real estate agent. It’s a good idea to ask for referrals and meet with several agents before picking the best one that suits your needs. LMC will be happy to recommend a few local real estate agents for your consideration. Another thing to look out for is how familiar the agent is with the area.

Month 6
Starting to research home inspectors and home owner insurance companies is a good idea at this point. Your real estate agent can likely give you a list of home inspectors from which to choose. If you currently have other insurance policies, they may be able to offer you a discount.

Month 7
At this point, you should start getting all of your paperwork in order. We provide a resource that contains a Home Loan Checklist that you can follow.

Month 8
The next step is contacting us. We will meet with you, help you get prequalified and find several options from which you can choose the best rate and terms.

Month 9
Now the fun begins – it’s time to find your dream home! Once you find your home it’s time to put in an offer to buy the home. You may negotiate back and forth with the seller, which your agent will guide you through. After the negotiations are over, you will sign an official sales contract and we will get your loan in order. You will also need to get a home inspection completed.

Month 10
After the sale is complete, it’s time to start contacting utility companies and researching moving companies. Your real estate agent will help coordinate these vendors with you.

Month 11
It’s time to start packing! At this point you will know your closing date and you can start preparing to move.

Month 12
Time to sign the closing documents and settle on the home of your dreams!!

If you have more questions, contact us or complete the form on this page to get started today.