Home Buying 101

We’re officially halfway through 2019 and now is the perfect time to refer back to the vision board you created at the top of the year? Have you been accomplishing your goals? Maybe one was to move into a new place or buy your first home and though you’re on the right track, you have no clue where to begin? No worries, we’ve got you covered!

If you’re any thing like me, you’re looking at your vision board you created about six months ago and you’re thinking of ways and creating plans to ensure that by the time 2020 rolls around, you’ve accomplished many things that you set out to do this year. One of my biggest goals is to buy my first home in the near future and though HGTV has prepped me on knowing the difference between contemporary and colonial style homes, Chip and Joanna Gaines aren’t exactly on speed dial to help when it comes to the actual buying process.

Sarah Gabany is a Las Vegas based realtor who specializes in helping first time homebuyers know the ins and outs of buying a home, finding lenders, building credit and so much more. We we’re able to ask her tons of questions and advice when it comes to the home buying process and wanted to share them with you!

Building Credit

You can almost do absolutely nothing without credit, its a necessary evil for sure and even more important when buying a home. If you’re anything like me and were taught that credit cards were bad so you steered clear of them, now is the perfect time to start building credit. If your parents have great credit, consider asking them to add you as an authorized user to one of their cards. Once you’re added, don’t spend more than 20% of the card’s limit and pay it off every month. Within six months, you’ll be sure to have a great score that will allow you to build relationships with lenders and apply for loans quicker. If being added to a card is not an option for you, open up a credit card account at your local credit union. They’ll ask you to put up $300-$500 which will be your credit card limit and if you follow the same method of spending no more than 20% of your limit, you’ll have a fantastic credit score in no time.

Finding A Lender

Unless you’re Drake or have a nice lump sum of an inheritance, you may need a lender to help you finance your home and that’s totally fine! The first thing lenders look at is of course your credit score because of course they want to know that you’re trustworthy enough to loan money to and that you can pay everything back on time. They’ll ask questions about what you plan to pay as a down payment, whether or not you can cover 1% of the purchase price, and what you feel comfortable paying each month. While most credit unions and banks will recommend lenders to you, always feel free to ask your realtor who they’d recommend just to have options.

Location, Location, Location

Now that your credit is in tact and you have a lender, but where do you want to live? If you’re considering purchasing with Sarah, she has a starter packet that asks a series of questions in regards to school districts, if you’d like stairs, whether or not you’d prefer a heated garage, and so much more. Where you want to live, for some, is determined based on natural disasters and weather. For example, if you’re looking to live in LA, having fire, earthquake and mudslide insurance is necessary for your home. At the same time, if you’re looking to live in Oklahoma, tornados and floods can be plentiful so being aware of the weather and climate can be a huge factor when you’re choosing where you want to live. Considering where you want to live is a HUGE undertaking as it can help you determine your price point and square footage. Certain areas in the same city can be more expensive than others simply because of the property taxes and other factors so be sure to take all of these factors into consideration when looking for your new dwelling location.

A Helping Hand

The stress that comes with preparing to buy a home is essentially unmatched and your blood pressure levels could be significantly decreased when you have a fantastic realtor who understands your needs, listens to your concerns and educates you on the process as a whole. Sarah had her own horrible experience when it came to buying her first home which is what inspired her to embark on a journey of helping others buy their dream home.

Welcome Home

Though it can cause a few headaches along the way, buying a house can one of the best things you ever do. Owning a home isn’t everyone’s goal and that’s totally okay! However, if you do, don’t let anyone discourage you from wanting to do so. Owning a home is like owning your own little slice of paradise that you can decorate, make memories in, and truly enjoy for years to come.