So you’re thinking of buying a home?

So you’re thinking of buying a home?
Today I wanted to dedicate a post to those who are thinking of buying a home and taking advantage of this incredible market.
There are a lot of reasons why someone should or should not buy, and when you find the right agent who can listen to your goals and dreams, they should be able to point you in the right direction.
The last time I was on Real Talk I was asked what someone should be looking for in an agent to get their house sold (you can listen to that recording here), and later today I’ll be talking about the process of preparing to buy.

1. Save money.

This one may not come as a surprise, but the great news is you may not need to save as much as you think. While saving 20% of the purchase price is great to alleviate you of a mortgage insurance payment, you can still get a loan for less.

Here are the most common loans and their minimum down payment-
VA loans (available to eligible veterans) could be as low as 0% down
FHA (Federal Housing Administration) loans start at 3.5% down

Conventional (the most common type of loan) starts at 5% down

Keep in mind there are other costs associated with taking out a loan, we call these closing costs. They cover a variety of things from inspections to appraisals to financing fees, title costs, and more. While they may run from 2-3% of the purchase price, there are many different ways to subsidize this cost. Some of them include negotiating with the seller to have them cover a portion, and your lender is also able to factor them into your rate if you prefer.

2. Day dream 

What are you looking for in a house? Where would this dream house be located at? Sure a $5,000,000 beach villa sounds great, but maybe we should rope in a little more and see what fits your lifestyle and price range.

3. Meet with an agent

Or agents. Either way, interview someone before going out and seeing homes. Finding a great agent and finding the right house are completely different steps and you want to keep them separate. If the first time you meet an agent is at a property before a marathon of showings, the odds are you’re going to find yourself in the same position a month later, and exhausted from seeing 50 homes. In that time, prices or interest rates could have also gone up, and now you’re not just out time, but also money.¬†

Meet with an agent!

Meet with an agent!


Make sure to ask questions! Just like our blog post where we discussed selling your house, there are numbers that are going to be important to you.

When you sell your house you’ll want to know what percentage that agent brings in on average, compared to the list price. Same idea, but opposite concept on the buy side. You want to find an agent who can get you the lowest list price to sales price ratio so they¬†save you money.¬†For example, we just closed on buyers whose house appraised for $20,000 MORE than they were under contract! That’s 10% equity that goes straight into their pocket!

Once you’ve done that, you’re well on your way to becoming a rock star buyer, whenever that may be. Prepping may not be the most fun part of home ownership, but if you do it right, you’ll be¬†so¬†thankful you did!
Happy buying!
– Kelly
Kelly Henderson is a REALTOR¬ģ ¬†and Owner of Momentum Real Estate Group at Keller Williams Realty. She’s a second generation Realtor and a native to Arizona.

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