How to Confidently Make the Leap From Renter to Homeowner

When you want to start the homebuying process, there are several steps that you will want to take before making that leap. You will need to prepare your finances, decide what kind of house you want, and then take steps to secure a mortgage and find the right home for your family and lifestyle. Keep reading for details on each of these steps that you need to take before making the leap from renter to homeowner.

Before you are ready to leap from renting to owning one of the homes for sale in Washington, DC, you will want to start by preparing your finances. Begin this process by setting a goal for how much money you need to save. You will need to consider several factors when looking to start saving money. Consider the down payment, or upfront cash, that you will need to pay as soon as you make a purchase.

Don’t forget you will also have to pay closing costs or fees that finalize your mortgage. Closing costs are often 2-5% of your loan. Additionally, there may be additional expenses after you make your purchase. You’ll need to actually move into the home, and you may need to make small purchases at the hardware store to get your home into a fully functioning order after you move in.

When you are saving up for a home, you will want to make this process as easy as possible. Start by allowing automatic transfers from your checking to your savings account. Any additional money you make during this time should also go into savings. This could include tax refunds, bonuses, and raises. You will also want to consider ways to earn extra money during this time. Any money you make from freelancing or second jobs should go directly into your savings.

Make sure you keep a good eye on your savings. Check your savings amount every month and increase your savings accordingly in order to keep yourself on track for purchasing your new home.

After you begin getting your finances in order, but before you actually start shopping for a house, you will want to determine what features you want in a house. By sitting down and creating a list of must-have features, as well as secondary features that would be nice but not a deal breaker, you are lessening the chance that you will be tempted to quickly put an offer in on a house that has an eye-catching feature. For example, if you don’t write down a pool on your list of must-haves but find a house with a very spacious, eye-catching pool, you may find your emotions driving the sale.

You will want to consider several items on this list before you start looking into homes for sale in the American University Park neighborhood. Of course, you want to make sure you have enough space for yourself and your family in your new home, so determine how many bedrooms and bathrooms you need. Decide how much kitchen and living room space you will make use of. If you have kids or pets, you may want to consider a house with a large, fenced-in backyard.

Next, you will want to consider the future of your new home, including how much effort you are going to want to put into the renovation. Don’t overestimate your desire and ability to renovate. It can be fun to think of all of the DIY home projects that you can do in a home that will need renovating in the future, but when it comes time to do the work, are you going to have the time, energy, and money to put into the projects? If a home has too many potential renovation projects, you may want to reconsider whether it is going to be worth the effort in the future.

You will also want to determine how much extra space you need for unexpected events. You and your family may only need a two-bedroom house right now, but what about in the future? What if you need a home office, decide to have another child, or have an elderly family member that needs to move in with you? When deciding what you need in your new home, consider the future of your family as well as your current needs.

Now that you have set up your finances and decided what type of house you need, you will want to get pre-approved for a mortgage. Getting preapproved before searching for one of the American University Park homes for sale can make the home-buying process go more smoothly than it would otherwise. You will need to complete a home loan application and document your assets and income, then the mortgage lender completes the process. By getting pre-approved for a mortgage, you show home sellers that you are serious about your offer. While you could still get denied a loan even after pre-approval, this is less likely than if you didn’t seek pre-approval.

Keep in mind that you could also get pre-qualified for a mortgage. While pre-qualification is helpful, it is not as accurate as pre-approval, and there are more features that are likely to cause your loan to be denied with pre-qualification.

Once you start looking at properties, you won’t want to let your emotions take the front seat and make a purchase too quickly. If you think you have found the perfect home, you may be tempted to make an offer immediately and try to move quickly in order to secure the sale. At this point, you could forego a home inspection. Don’t do it. While everything may look like it is in perfect shape and working order while you take a home tour, a home inspector will look at things that you won’t notice during your walkthrough and could make or break your decision to purchase a home. You may not look closely at the electrical, plumbing, foundation, and roofing, but a home inspector can tell if you will need to put a lot of money into repairs after you purchase. At this point, you could decide to make the purchase as-is, negotiate repairs with the current owner, or walk away from the sale entirely.

Once you have completed all these steps to ensure that you are ready to make the leap from renter to homeowner, the last step you will want to take is to choose to work with a professional real estate agent. You will want to choose to work with a real estate agent that has a high level of knowledge about American Park University houses, specializes in first-time homebuyers, and will be transparent and communicate well with you throughout the entire process.

Alejandro Ortega is a well-respected real estate agent throughout Washington, DC, and the DMV area and has extensive knowledge of each neighborhood. He provides his clients personalized service and builds long-term relationships, ensuring that you will want to return to his team for future real estate transactions. Reach out to Alejandro directly when you are ready to make the leap from renter to homeowner.