Ready to Turn the Key to Your New Home? Let’s Explore the Exciting Home-Buying Journey Together!

Before you dive into the home-buying process, take a moment to ask yourself, what's your why? Understanding the reason behind your decision is key to staying focused and motivated as you navigate this exciting journey. Are you dreaming of more space for a growing family, or is it time to stop throwing money away on rent and invest in something of your own? Whatever your why may be, make sure your goals are in sync with it, and you'll be ready to make decisions on what truly matter to you.  

Let’s kick things off with something crucial when it comes to buying a home, your finances. Specifically, we’re diving into credit scores. These numbers are more than just random digits; they’re the key that can unlock the door to your new home. Your credit score plays a huge role in whether a lender approves your mortgage and, even more importantly, what kind of interest rate you’ll get. The good news? You can also grab a free copy of your full credit report from the three major credit agencies at Annual Credit Report.com

If your credit score needs a little TLC, don’t worry, `there’s time to turn things around! Start by paying your bills on time, keeping your credit usage under 30%, and avoiding opening any unnecessary new accounts. Also very important, be sure to check for any errors on your report; fixing them could give your score a nice boost. 

Pro Tip: FHA loans typically require a 580+ credit score, while conventional loans need 620+. VA loans have no set minimum, but 620+ is recommended, and USDA loans usually need 640+. A higher score boosts approval chances and secures lower interest rates, saving you money long-term.

Now that you have a better understanding of your credit score, it’s time to choose the right mortgage loan officer. You’ll want someone who understands your financial situation and makes you feel at ease. Look for a loan officer who takes the time to explain your options and helps you navigate the entire process. A great lender will be upfront about fees, interest rates, and timelines, and they’ll patiently answer all your questions. Trust is key, so don’t be afraid to shop around and speak with a few different lenders to find the best fit for you.

Pro Tip: Working with a local lender, rather than an online one, can make a huge difference when you go to make an offer. Be sure to consult with your agent, too, they likely have a network of lenders they’ve worked with and can recommend trusted options. 

It’s important to be upfront and honest about your debt and income when working out your financials with your lender, this transparency helps avoid any delays or surprises during the home buying process. So, if you’re starting a new job, receiving irregular paychecks, or even quitting your job to start a business, be aware that this can make it harder for lenders to track and verify your income. Something to keep in mind, lenders typically prefer to see at least two years of stable employment in the same field or with the same employer to ensure a reliable income history. 

Let's talk pre-approval for a sec, be sure to get a pre-approval and not a pre-qualification letter, the difference is huge and helps determine the strength of your offer.  Also, think about what type of loan fits your needs; FHA, Conventional, VA, USDA, each one has its own perks. The right choice can make a big difference in your home-buying journey. And don’t forget your down payment! Whether you're putting down 3%, 10%, or 20%, it impacts your loan terms and monthly payment. The stronger your financing, the stronger your offer!

Alright, you’ve been pre-approved, nice work! You now know what you can afford, you can go big and buy at the top of your budget or keep things a little more comfortable with a lower payment. Next step. the fun stuff (and sometimes frustrating) part: actually finding your home. And trust me when I say, the search can stall fast if you don’t know exactly what you’re looking for or even more importantly, what you refuse to compromise on especially in a competitive market (remember patience and Diligence). Step two: Find a Realtor who actually gets you. Just like with your lender, you want someone you’re comfortable with, someone who’s upfront enough to tell if your house-hunting wish list is realistic based on your price range. Talk with at least three agents before you choose the right one. And communicate your must-haves, deal-breakers, and budget them. The more we know, the better they can tailor their search to find homes that truly fit your needs.

Let’s talk showings. This where first impressions are made, and decisions start to take shape as to which home truly fits your needs. As a realtor who's been through countless showings in Luzerne and Lackawanna counties, I can tell you there's definitely a strategy to making the most of them.  Whether you found the home online or your agent sent you one they thought would be a good fit, take a drive through the neighborhood, especially if you're not familiar with the area. Get a feel for the vibe, check out nearby amenities, and see if it’s a place you can picture yourself calling home. During the tour, remember, you’re walking through someone else’s space, so treat it with care. Remove your shoes if requested, don’t touch personal items, and follow any instructions left by the seller. Be mindful of recording devices such as Ring cameras, which may be monitoring your visit. Always behave respectfully and assume you’re being observed. 

This is it; this is the one you’ve been searching for! After all that time house hunting, you’ve finally found the perfect place to call home. Now, it’s time to write a strong offer and make it yours. One of the biggest questions I get is, “How much should we offer?” With high demand and even higher competition, especially in a seller’s market, it’s important to come in strong. You want to put your best foot forward, making an offer that stands out without overextending yourself. Before making any big moves, ask your lender to break down the closing costs and estimate your monthly payments. This way, you’ll know exactly where you stand and whether it fits comfortably within your budget. And trust me, your lender won’t mind! They want you to be financially confident in this big decision just as much as you do.

If a house seems overpriced, it might be. We can run a Comparative Market Analysis (CMA) to help you determine a fair and competitive offer. This way, you’re making an informed decision instead of just guessing. 

Congrats! Your offer has been accepted, time to celebrate!  But before you pop the champagne, there are a few important steps to get through. This phase is known as the contingency period or escrow, where all the necessary checks and balances take place before closing. One of the first things you’ll do is order a title search to ensure there are no outstanding liens or judgments on the property. At the same time, you'll schedule your home inspections, which typically take place within 10 to 15 days. This is your chance to thoroughly assess the property, and if any issues come up. If the inspection reveals problems or repairs are needed, you may be able to negotiate with the seller to fix those issues. The appraisal is another key step, as it determines whether the home’s value aligns with the agreed-upon purchase price. Depending on the loan requirements there may be some fixes to negotiate as well.

While these processes unfold, your lender will likely request various documents for loan underwriting. It’s important to stay on top of these requests to keep everything moving smoothly. Once you've cleared all contingencies, passed inspections, and satisfied your lender’s requirements, you'll receive what’s known as the "clear to close." At this point, you’re just days away from making that home officially yours!