Getting ready to start house hunting? Get tips on how you find and buy a house you love that is still affordable!
Are You Ready to Buy a House?
Right now with the national median listing price in December was $340,000, chances are buying a house – it’s typically the biggest purchase a family makes.
Depending on where you live it can be a hot seller’s market, making it even more difficult to find a place that you love.
That’s why it’s so important to go in prepared not financially, but with an understanding of what home ownership truly looks like.
Certified Financial Planner and Accredited Financial Counselor® Adam Hagerman is here to help sort through things including the whole rent vs buy debate.
Before you start house hunting, you want to make sure this is the best move for you and your family.
In this episode, we’ll get into:
- How the buying process work – qualifying for a mortgage, finding an agent, house hunting, and closing
- Bad advice and myths people hear about buying a house
- What you truly need to focus on when you’re buying so you’ll be happy and not house poor
Let’s get started!
Resources on Buying a House
If you’re looking to buy, here are some resources to help you find an affordable place you love!
- Best Budget and Money Apps: Personal Capital, Tiller, Mint
- Jumpstart Your Marriage and Your Money
- Grow Your Stash Faster: High Yield Savings with CiT Bank
- Jumpstart Your Marriage and Your Money
- Buying a Home <- Want to save thousands of dollars while buying your dream home? Adam’s course takes you through contemplation to closing
- How to Snag a Great Deal When Buying a House
- What You Need to Know About Mortgages
Thank You to Our Sponsor Coastal!
Support for this podcast comes from Coastal Credit Union! If you’re living in the Raleigh Durham area and looking to bank better, come check out Coastal today.
See how Coastal can help you with your mortgage needs!
Key Takeaways on Snagging a Great Deal When Buying a House
We covered a lot of information today so before we wrap up, I want to focus on a few key takeaways from preparing this episode.
The first one is please run your own numbers. I want you to own a home and for it to feel like a blessing and not a burden.
Finding an affordable place means that you’re able to be a homeowner and still hit your other financial and family goals.
The second is focus on what matters to you.
I don’t know how it happens, but when you announced that you’re buying a house, There’s a lot of advice that’s thrown at you.
Some of it is well-intentioned and good, but sometimes there are myths that keep getting passed on as a fact.
So you want to make sure that you’ve defined. What kind of house that you want, why you want this house and also again, that the numbers line up for you.
Don’t feel pressured to buy a house simply because you’re supposed to be doing it or it’s that time in your life that everyone else is buying a house and said make sure this is a milestone that you want to hit.
Finally, as you probably picked up based on what we’ve talked about, the more work that you put into it, the better the results.
A lot of this is preparation, getting the pieces in play. And then the house hunt becomes a lot easier and a lot less stressful.
Spending the time upfront, getting your finances in place. Defining your must haves and having your wishlist and knowing which neighborhoods you would love to get a house can make this home buying process a lot more fun.
There is so much to talk about when it comes to house hunting, so if you want to chat more, please join us in our free and private Facebook group, thriving families.
We’re all about helping and encouraging one another with our family and financial goals.
We love to swap stories, ideas, and tips.
We can tell you what worked for us, what didn’t, and you can usually find someone in the vicinity or area you’re in which can be great for recommendations for things like real estate agents.
Please head over; we’d love to see you there!
Buying a House: The Process
If you're a first time homebuyer or it’s been awhile since you’ve bought a place, I want to give a quick refresh of the overall process.
With such a big purchase, having a general roadmap can make it a lot easier to navigate and approach it bit by bit instead of getting overwhelmed or stressed out.
Before the House Hunt
- Build Your Finances: Build up your savings [both downpayment and for closing costs]
- Optimize Your Credit Score: The higher your score, you’re typically getting better aka lower interest rates.
- Create Your Need/Wants List: Have a clear idea of what your priorities are for your house. Type of house. Size? Distance from work/schools. Yard- Yes/No.
- Research Neighborhoods: Check out my episode with Louis Guillama where we dig into finding those hidden gems of neighborhoods.
The House Hunt
- Shop Around for the Best Mortgage and Lender: Consider your mortgage loan options, calculate your monthly payment.
- Find a Real Estate Agent: Ask for recommendations. Interview agents – How knowledgeable are you about my desired area?
- Get Pre-Approved for a Mortgage: Explain difference between prequalified and preapproved.
- Go house hunting:
Getting to Closing
- Make an Offer: Vary based on whether it’s a buyer’s or sellers’ market. You may include contingencies with your offer. With this offer, you also have Earnest Money Deposit/Escrow Deposit. The point of this is to show the seller you’re serious.FYI, this is held in an escrow account and counts towards your down payment and closing costs.
- Home Inspection and Appraisal: Negotiate what you can. These inspections are crucial because they can identify potential major repairs or renovations that require immediate attention. Your lender will want an appraisal. Also you’ll need to get the property title done.
- Closing: Before you sign off, you and your agent will do a final walk through to make sure any repairs are done. Also a few days before you should have already gotten a closing disclosure from your lender.
At closing, you’ll go through a ton of paperwork. Don’t rush. Your team will help you through everything.
Support the Podcast!
Thank you so much for listening to the podcast! If you enjoyed this episode and found it helpful, here are some ways to support it.
- Spread the word! If you enjoyed this episode and think it can help a buddy get on the path to dumping debt and become financially free, please share.
- Leave a review. Honest feedback and reviews make a big difference and gets the word out about the podcast. Leave your rating and review on Apple Podcasts.
- Grab a copy of Jumpstart Your Marriage and Your Money. My book is designed for a busy couple to set up their finances in 4 weeks. Get tips and tools that have worked for other couples on their journey of building their marriage and wealth together!
Our theme song is from Staircases. Additional music by various artists from Audiio.