My First Seven Steps Toward Buying My Dream Home
The act of buying a home can truly feel like scaling a mountain.
The act of buying a home can truly feel like scaling a mountain. I know because I just went through it — successfully — and lived to write this blog! Although it wasn't my first time buying a home, it was my first time buying one all on my own.
As a seasoned mortgage broker, I knew all about the loan process, from getting pre-qualified for a home loan to applying for the loan, securing the financing, and closing. However, I needed to familiarize myself with what many clients consider the sometimes grueling but enjoyable part: shopping for a home! Along the way, I gained a window into what my clients experience after they get pre-qualified with me and hit the listings.
I began journaling about my home-buying process and realized that sharing it might be valuable advice to someone looking to become a homeowner. This month, I'm sharing the first seven steps I used in my recent home-buying experience. These steps can help provide the roadmap needed to reach homeownership this year (or anytime!).
Set A Goal
When a client wants to buy and own a home, setting a goal is the only natural place to begin. But setting a goal is one thing; figuring out how to achieve it is another.
For me, thinking about my goal and working toward achieving it was all about transforming my mindset. Once I decided I wanted to become a homeowner again, I did a few things that would help me naturally keep my goal in the forefront of my mind. I made a vision board that illustrated my goal of being a homeowner and helped me feel empowered to achieve it. Here's a great resource on how to make a vision board.
I came up with personal affirmations I could repeat to myself when I needed to and help myself become more confident in making my homeownership goal a reality. Some of these included:
I am a happy homeowner.
I do not blow money on things I do not need.
I am a great budgeter.
I save money.
I am debt-free.
I am responsible for my money.
To help with my affirmations, I even changed some of my passwords to remind me of my goal (i.e., "Homeowner2021," "SavemoneyNow2021," "DoIReallyNeedThat2021," and others). These especially came in handy to stave off online shopping! I also told trusted family and friends I was saving to buy a home and asked them to be my accountability partners, which helped me stay on track with savings.
Make A Plan
Setting a goal is a great first step. But as most people have heard at least once in their lives, "A goal without a plan is just a wish." It was time to dig deep and make a PLAN to achieve my goal. This included:
Making a plan to pay off debts
Making a plan to make more money
Making a plan to save
I had to get honest about what I was doing, or else this would remain a wish.
I began budgeting. I tracked my income, bills, discretionary income, and how much I planned to save weekly and monthly. I used a simple notepad to write down all of my spending for two weeks, and when I was done, I took a hard look at it and found areas to trim down. This step is hard but involves being realistic about income and expenses. When tempted to buy something, ask, "Do I need this? Or do I just want it?" For budgeting, here is my personal monthly budget worksheet to help understand dollars in and dollars out. There are also tons of planners and worksheets that can be customized and made to work.
Stay Flexible
"A goal without a plan is just a wish." And "Be stubborn about your goals but flexible about your methods." There will be setbacks on any path toward homeownership. The key is to prevent them from crushing goals and adjusting the plan when the unexpected happens.
Two years ago, my Grandmother became ill and passed away. I was very close to her, so this was a big change in my life and plan. I had to re-adjust. The COVID-19 pandemic was most definitely not in my plan. I began using DoorDash a LOT, which was unsuitable for my budget. I had to re-adjust again.
It's important to remain focused on the goal of homeownership and on the steps needed to achieve it while remaining flexible about how to get there.
Get Pre-Qualified
Before looking at homes, getting pre-qualified is essential. This helps a client understand how much house they can afford. The pre-qualification process involves verifying pay stubs, W-2s, credit, and bank statements, completing a two-year job addressing history, and filling out a loan application.
Getting pre-qualified also aligns with budgeting and financial preparation steps to purchase a home. It's important to review a financial situation, fix any credit issues, make budget adjustments, and save before beginning to shop the market for a home.
Find a Trusted Advisor in a Realtor
Next, it was time to find my trusted advisor, my realtor, who could help me find the home that would become the largest purchase of my life. There are lots of realtors out there. There might even be a friend or a family member who is a realtor. BUT... It's important to remember that everyone needs an expert in their corner.
Buying a home is emotional. Someone needs to remove the emotions and bring logic into the process. Someone who can help make a smart choice. An expert realtor can also help a client understand the real estate market in the community. They know the neighborhoods, understand the wants and needs in a new home, and are committed to helping find that dream home.
If this person turns out to be a family member or friend who is a realtor, that would be excellent! But finding someone with more experience, a known real estate expert in the community with an excellent track record of fighting for their clients, is okay. This choice may strain some relationships, but it is best to meet the homeownership goal in the long run.
Get Clear About Wants and Start Touring Homes
As clients begin working with their realtor, their wants and needs in a home will be discussed. Go a little deeper and define what that looks like. Are there features that are "must-haves"? Features that would be "nice to have?" Describe that vision of a home. These conversations will verify that the realtor knows exactly what the client is looking for and how to prioritize wants and needs along the way.
When a client is ready to start touring homes, there are a few tips to remember.
Bring a Notebook—Take notes and, better yet, bring the listing information sheets to each home while touring houses. Note the pros and cons of each home to organize feedback for reference later.
Take New Photos—Take photos to keep a clear record of the homes toured. If there are extra special features to remember, shoot those as well!
Rate those Homes—Rate each home toured from ten (dream home!) to one (not so much) and rank them in a group. This will help in decision-making.
Lean on the Realtor—Eventually, home shopping can get frustrating, especially when not finding the right one. The realtor, who knows precisely what is wanted, has insider knowledge of homes that are not yet listed but may be available.
Photos May Outshine the Listing - A great photo filter may make a less-than-desirable room look amazing when, in reality, it's not.
These were the first seven steps I took—and succeeded with! — on my path toward owning my dream home. Searching for a dream home? Is this the year to buy? If on the path to homeownership, Mindful Money can help with the pre-qualification and secure a loan for the dream home. Reach out anytime at 480-313-7103 or sam@mindfulmoneyusa.com.
* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.
As a licensed mortgage broker, mindful money has been helping residents in Arizona, California, and Colorado with top-notch conventional mortgage, FHA mortgages, and reverse mortgages solutions. We help them navigate the home-buying process smoothly and confidently. Call today for more information.
