In the last couple of posts, we’ve talked about determining when the best time to transition from renting to buying could be for you and covered questions to ask yourself and other professionals in the real estate world that will help you determine the best timeframe to purchase your first home.
Throughout the rest of this blog series, we are going to transition into looking at the home-buying process to help demystify the world of real estate! Buying a home is possibly the largest financial investment you will ever make. Something mind-blowing to me is that throughout our entire educations, most of us were never taught things like paying taxes, taking out a mortgage, how to make a wise decision on which insurance we need, etc. My main goal in being a licensed Agent is to educate clients and friends on the items above throughout their home buying, selling, or leasing experiences while helping them find the perfect place to call home.
In the next blog post, we will take a look at a general home-buying timeline to give you a good idea on when to start making moves. But before we get to that point, and start digging deeper into topics like “Determining How Much House You Can Afford” and “House Hunting 101”, it’s important to understand who the professionals in the real estate industry are, and how they can help guide you in making the best decision for you and your family.
Top 3 Professionals You Need on Your Team
1. A Real Estate Agent
A Real Estate Agent is a licensed real estate salesperson who belongs to the National Association of Real Estate Agents (the largest trade group in the country). Not every real estate agent is a Real Estate Agent! Real Estate Agents are held to a higher ethical standard than licensed agents and must adhere to a Code of Ethics. When considering buying a home, hiring a Real Estate Agent should be a no-brainer – especially because the seller pays the buyer agent’s commission.
Building a relationship, staying in the loop on market changes, and working towards your home-buying goal can start as early as you want them to. Article 11 in the Real Estate Agent’s Code of Ethics states that when providing a real estate service, Real Estate Agents must be competent in that field (commercial, land, residential, property management, and location area). If you are in the DFW area (where my specific competency lies) – I would be honored to be your go-to Real Estate Agent! If you are looking into buying a home outside of the DFW area, I would love to help you find a competent and experienced Real Estate Agent in the area you are looking in.
Our team has a vast network of Real Estate Agent connections that I would be happy to interview for you to help you find a professional that will fit all of your needs. Let’s talk!
2. Lender
A lender is an individual, a public or private group, or a financial institution that makes funds available to another with the expectation that the funds will be repaid. Repayment will include the payment of any interest or fees. It’s important to define here what a mortgage is as well – a mortgage is a legal document you sign when you buy or refinance a home that gives the lender the right to take the property if you don’t repay the loan.
A copy of your mortgage is filed in the county records as a lien (or legal claim) against the home. The idea of taking out a mortgage typically brings about dread and nervousness, but it doesn’t have to! Making a smart decision on the mortgage you take out can create financial independence and opportunity in years to come!
Choosing a lender can be a difficult decision. You deserve a smooth and comforting experience when working with a lender. If you ever feel pressured or nervous when talking with a lender, it probably isn’t a good fit for you. It’s a great idea, and very normal, to get a few different perspectives on the type and amount of loan you should take out. When the time comes to look at interest rates, you can then compare what different lenders are able to provide and make a wise decision before securing your financing. Feel free to reach out to me at any point if you have questions about finding a lender you can trust!
3. Insurance Agent
Unless you pay cash for your home, you will be required to get homeowner’s insurance to cover the home you buy (the lending institution you work with will require insurance on the home to protect the investment they have made in lending you the money to buy it). Most insurance companies offer homeowner’s insurance, however it’s important to note that not all homeowner’s insurances are equal. You may think you’re getting a great deal, but the coverage may be less than ideal.
Working with a trusted insurance agent is paramount! A great agent will walk you through specifically what you need for the home you are purchasing, and will find the best option for you. This is another great moment to consult your Real Estate Agent – they should be able to provide you with a great list of contacts to touch base with to compare plans. Companies like Goosehead Insurance offer a wide range of carriers and working with them is free to you as well! Let me know if you ever have any insurance questions – our team has trusted contacts that we would love to connect you with.
Lots of content here, but my hope is that this information can be a great resource to come back to whenever you need it – whether it’s today or in 2 years! As always, please reach out to me if you have any questions! Next up is a general home-buying timeline that will walk you through when certain things happen within a real estate transaction so you know what to expect when the time comes.
