If you have a presentation scheduled with an agent, here's what you may want to know & accomplish beforehand.
Before you meet with an agent about the possibility of buying a property, here are a few things you can do to prepare yourself for the appointment:
Consider your desired monthly payment amount
You'll need to start thinking about how much you feel comfortable paying towards a monthly mortgage. Some helpful questions to think through might be:
- Are you used to making regular monthly payments?
- Is there a limit to how much you're willing to spend on a new payment per month?
Take this time to think through your own expectations of the most you'd like to commit to each month. If your expectation is unrealistic, this is a conversation your agent or lender will have with you before you decide to move forward.
Keep in mind that your monthly mortgage payment will consist of principal, interest, taxes & insurance. Beyond your mortgage payments you will also need to pay for utilities and you may also need to make regular payments to a homeowners association, depending on where you choose to live.
Confirm your expendable funds for closing associated costs
Beyond your monthly mortgage payment, you'll also be expected to pay for some expenses during the process of closing on a home. Your realtor will go into these costs with you further at your presentation, as well as what to expect in regards to the amounts you'll need to pay. However, taking the time to gauge your spending limit will help the realtor and the lender know what price range you can afford to shop in.
Get pre-approved for a loan with a lender
If you can't afford to pay for a house with cash alone, you'll need to consider how you will finance the rest of the expense for a home. We have a helpful article here on how to get pre-approved with a lender. A few helpful things to note about this process:
- Your realtor can recommend lenders to you. Typically they have a good working relationship with these individuals and know you will be taken care of
- Having a pre-approval letter in hand before you start this process will clear the air about what you can afford & help the realtor serve you better
While this isn't required, getting pre-approved before your appointment can be a huge benefit. For example, what if there is a credit issue you were unaware of that prevents you from getting preapproved at this time? It's always better to know your buying power before setting an expectation with yourself & others.
Create a list of criteria for your new home
You may already know what you want in your dream home, but it's a good idea to really hone in on the specifics with anyone else who will be making the decision with you. Some questions you may want to discuss together might be:
- What are "must-haves"/things you cannot do without
- What are optional items/best case scenario items
- What are some "can't-haves"/things you cannot live with
Some examples of this might be school district preferences, the minimum number of beds & baths, proximity to your work, or physical limitations such as not being able to walk up & down stairs. Having a template for what you can and cannot budge on will help your agent know where to start looking, but it can also be a good conversation starter if the goals you present difficulties you may have not known about.
Brainstorm questions you may have
Lastly, think through any common misconceptions about the process you might have. Here's a good list of things to think through that might jog your mind:
- What are some of your fears about buying a home?
- What are some things you are excited about?
- What expectations do you have about the process of buying a home (good or bad)?
- How long do you perceive this process taking?
- Do you have people you'll need to involve in this process who won't be at the meeting?
- What are some things that must be done by the agent to consider this process successful to you?
Regardless of how prepared you are or how prepared you feel you are, we are confident the presentation with your agent will help you tremendously. Whether you are a first-time homebuyer or this isn't your first rodeo, you'll leave with a much better sense of what to expect in the near future, your role & most importantly the value your agent will bring throughout the entire process.