Coeur d’Alene Real Estate News

8 Steps to Buying Your First Home

8 Steps to Buying Your First Home

Let’s be real, buying a home for the first time can be scary! A house is the most expensive thing many of us will ever purchase. But it doesn’t have to be scary, just break it up and tackle each step one at time.

Step 1: You might have guessed… BUDGET

I admit, not the most fun step but EXTREMELY important! You need to know what you can handle. Time for shameless honesty, don’t leave anything out. Yes, a lender is going to approve you for a certain amount but that might assume that you aren’t a foodie that wants to try every restaurant in town at least once… at least. Eat out once a week, cut where you can and create a realistic budget. Now stick to it and remember that house when you feel weak.

Before you finalize that budget, make sure you don’t forget these home buying costs

  • Down Payment- The more the better, but you knew that. Often around 20% of the home’s sale price. Luckily there are options with lower down payments. If you meet the requirements, you could put down less than 5%
  • Closing Costs- Anywhere from 2-5%,

Your lender will help you better estimate both of these in Step 2.

Step 2: Pre-Approval

Pre-approval is not mandatory but there are two reasons why you should not skip this step.

The Right Price Range- Don’t waste your time looking in the wrong price range. Sure it’s fun to daydream about living in a house that is 20 times what you can afford, but it’s not helpful when you are serious about finding a home now....