Your New Year's Resolution is to Buy a Home: Now What? Where to Start!

If buying a home is your New Year’s resolution—congratulations! It’s an exciting goal and a major milestone. While the process can feel overwhelming at first, you can absolutely make it happen with the right preparation and guidance. I’m here to help you set realistic expectations and navigate the steps so you can turn your homeownership dreams into reality.

What to Consider:

As a real estate professional, I guide my clients—especially first-time homebuyers—through these key considerations. Remember, the right timeline is your timeline. When you’re ready, we’ll find your dream home. There’s no need to rush.

1. Your Financial Health

Buying a home is likely one of the most significant financial decisions you’ll ever make. Whether you’re paying cash or using a mortgage, understanding your financial position is crucial.

Review Your Credit Score: Your credit score plays a major role in determining your mortgage terms. Check your credit report for accuracy and address any discrepancies before moving forward.
Assess Your Savings: Consider how much cash you’ll need for your down payment and closing costs (e.g., title search, insurance, and taxes). Knowing these figures helps you set a realistic budget.
Create a budget and stick to it: Lenders will closely evaluate your finances, looking at your income and monthly debts. To qualify for a higher loan amount, aim to keep your debt-to-income ratio low. If necessary, pay down debt to improve this ratio.

2. Choose a Real Estate Agent You Trust

While it’s no surprise that I recommend finding a great real estate agent, what does that really mean?

Knowledgeable: Your agent should be well-versed in the current state of the market and the homebuying process. They should be able to answer any questions you have or find the answers if they don’t know them already.
Reputation: Word of mouth is the best way to find a reliable agent. Ask your friends, family, and coworkers for recommendations. If you’re new to an area, social media can help you explore agents’ personal pages, brokerage profiles, and reviews.
Go-getter attitude: The home buying process has many moving parts. Your agent should be proactive in managing the flow of information and helping you meet deadlines, ensuring that you get as much information as possible along the way.

3. Understand Your Mortgage Options

Unless you're paying cash, you’ll need a mortgage. There are many types of loans available, and you can get one from a bank, credit union, or mortgage broker. I recommend getting at least three quotes from different lenders to compare options.

When speaking with lenders, they’ll ask about your income, debts, and credit score. They may also inquire about your occupation and other details to see if you qualify for any down payment assistance or specialized loan programs (e.g., VA loans for military members, FHA loans for first-time buyers).
Once you receive your quotes, review them carefully with your agent to determine the best fit for you.

4. Understanding Your Timeline

Timing is everything. Here are some factors to consider when planning your home-buying journey:

Evaluate your current living situation: Are you on a lease with a firm end date, or are you month-to-month? This can help determine your flexibility when it comes to moving.
Inventory: More homes typically hit the market in the summer and fall, but so do more buyers. In contrast, winter and spring may have fewer homes to choose from, but fewer buyers as well. This may give you a competitive edge if you’re looking in the off-peak seasons.
Plan purchases wisely: If you’re actively house hunting, avoid making large purchases on credit cards, loans, or lines of credit. These can impact your debt-to-income ratio, which could affect your mortgage approval. If you do need to make a big purchase, check with your mortgage lender first.

5. Define Your Needs vs. Wants

We’ve all asked ourselves, "Do I want or need this?" When buying a home, it’s especially important to be honest with yourself about what matters most.

What do you need? What would you love to have?

Single-family home vs. townhome vs. condo/co-op
New construction vs. existing construction
Pet-friendly
Commute time / Work-from-home setup
Dedicated parking
Number of bedrooms and bathrooms
Location
Outdoor space
Proximity to things you enjoy (restaurants, shopping, parks, etc.)

Buying a home doesn’t have to be overwhelming, and it shouldn’t be. By assembling a team of trusted professionals and having clear expectations, you’re setting yourself up for success. Take the time to think through these factors, and don’t hesitate to reach out to me if you’d like to have this conversation. With confidence in your team and your decisions, you'll find the home that fits your needs and goals.

And, as for my own resolutions, if anyone has advice on exercise goals, I’m all ears!