{"id":132716,"date":"2020-12-05T10:00:59","date_gmt":"2020-12-05T17:00:59","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=132716"},"modified":"2024-01-15T14:18:04","modified_gmt":"2024-01-15T21:18:04","slug":"steps-simplify-home-purchase","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/steps-simplify-home-purchase","title":{"rendered":"6 Easy Ways To Simplify Your First Home Purchase"},"content":{"rendered":"<p><iframe loading=\"lazy\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC8376975649\" width=\"100%\" height=\"200\" frameborder=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>Whether you\u2019re buying an investment property or a personal residence, the first time you purchase a house can be really daunting. It seems like there are so many things to consider and so many things that can go wrong. Plus, you\u2019ve probably heard a bunch of horror stories and know how fast the market is moving. You might wonder if you can even compete.<\/p>\n<p>Drown out that noise and adopt an abundant mindset. There are plenty of deals to go around! There are also some <a href=\"https:\/\/www.investopedia.com\/updates\/first-time-home-buyer\/\" target=\"_blank\" rel=\"noopener\">great incentives<\/a> for first-time buyers, so educate yourself and be prepared to take action when the right opportunity comes along.<\/p>\n<p>Just like anything else in real estate, creating a system and following a process can streamline and simplify things, leaving you with much less fear and anxiety. So if you\u2019re considering a first purchase, here\u2019s my advice to you and some steps you can take.<\/p>\n<h2>1. Figure Out Your Goals<\/h2>\n<p>Are you buying a personal residence? Is it a house hack that you will rent out fully in a year? Are you buying this property to live in for a few years and then keep as a rental later? It\u2019s important that you know the answers to these questions up front\u2014as well as what your long-term <a href=\"https:\/\/bcglobalinvestments.com\/2020\/01\/21\/create-a-strategic-plan-in-4-steps-an-hour-or-less\/\" target=\"_blank\" rel=\"noopener\">goals and plans<\/a> are. This will largely define your budget.<\/p>\n<p>For example, if you\u2019re house hacking but not initially covering the entire mortgage with your tenants&#8217; rent, will this property cash flow once you move out? Or if you\u2019re buying a personal residence and it\u2019s your forever home, you probably have much more wiggle room for upgrades and extras.<\/p>\n<p>I actually encourage you to get the things that you want (if you can afford them and they will bring you joy) because it\u2019s important that you love your home and appreciate the investment. If it\u2019s not your forever home or a house you see yourself in for a long time, it\u2019s important that it not get overly emotional.<\/p>\n<h2>2. Speak To a Lender<\/h2>\n<p>Ideally, your lender will be someone who understands investments\u2014not someone who just cares about the sale. You want to find someone who will be willing to listen to you, understand your goals, and give you a product that works best for you.<\/p>\n<p>You might not find this person right away, and that\u2019s OK. Not all lenders are created equal. Keep looking until you find the one that you want. Don\u2019t be afraid to shop around.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-113357 size-main-slider\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2018\/02\/get-a-loan-702x336.jpg\" alt=\"mortgage-loan\" width=\"702\" height=\"336\" title=\"\"><\/p>\n<h2>3. Finalize Your Budget<\/h2>\n<p>Once you&#8217;ve found a great lender, figure out exactly what your budget is. And I don\u2019t mean how much you can afford\u2014I mean what is within the limits of your goals. If you know that market rent in an area is only $1,000, you don\u2019t want your mortgage payment to be $1,100, because you will have a negative cash flow every month.<\/p>\n<p><em><strong>Related:<\/strong> <a href=\"https:\/\/www.biggerpockets.com\/blog\/2015-08-28-16-investing-terms-newbie\" target=\"_blank\">The Newbie\u2019s Real Estate Dictionary: 16 Common Investing Terms, Defined &amp; Explained<\/a><\/em><\/p>\n<h2>4. Find a Great Agent<\/h2>\n<p>This is similar to finding a great lender. You need to find someone who is going to listen to you and someone who wants to work for you. Make sure they understand your goals and the market. Make sure that they help you understand the process and at least have a general knowledge of the rental side of real estate.<\/p>\n<p>This is a good time to talk with a property manager, as well\u2014especially if you\u2019re considering renting the property in the future. Before you make an offer, make sure you know exactly what the market rent range is.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-130675 size-main-slider\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/10\/couple-going-over-documents-in-office-702x336.jpg\" alt=\"Family couple consultations with a lawyer or insurance agent.\" width=\"702\" height=\"336\" title=\"\"><\/p>\n<h2>5. Crunch the Numbers<\/h2>\n<p>Start looking at properties and <a href=\"https:\/\/www.biggerpockets.com\/blog\/real-estate-math\" target=\"_blank\">run the numbers<\/a> on every single one individually. Don\u2019t let this get too emotional. Once you find the property that meets the numbers you\u2019re looking for, move on to step six.<\/p>\n<h2>6. Make Offers<\/h2>\n<p>As soon as you find something that meets your criteria, make an offer. And even if it doesn\u2019t meet your criteria, offer a price that does. The worst the seller can say is no.<\/p>\n<p>Making offers is the only way you\u2019re going to acquire properties. It\u2019s the only way you\u2019re going to achieve your goals. It\u2019s the only way you\u2019re going to build a portfolio or move toward financial freedom or your dream home.<\/p>\n<p><em><strong>Related:<\/strong> <a href=\"https:\/\/www.biggerpockets.com\/blog\/things-i-wish-i-knew\" target=\"_blank\">7 Lessons I Wish I\u2019d Known When I Started Investing in Real Estate<\/a><\/em><\/p>\n<h2>The Bottom Line<\/h2>\n<p>That\u2019s it! Simple, basic, straightforward. Don\u2019t overthink it, and don\u2019t get overly emotional about it.<\/p>\n<p>And remember that you can protect yourself even while making offers. Build in a financing contingency, an inspection contingency, and anything else you can think of. And sleep peacefully knowing that you have full control and have time to do your own due diligence.<\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/store\/wealth-magazine-one-year\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-123232 size-full\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/Blog-700x120-v2.jpg\" alt=\"Blog ad for Wealth magazine\" width=\"700\" height=\"120\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/Blog-700x120-v2.jpg 700w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/03\/Blog-700x120-v2-300x51.jpg 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p><em>What do you wish you&#8217;d known when making your first purchase?<\/em><\/p>\n<p><strong>Share your experiences in the comments.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buying your first home can be intimidating. Avoid all-too-common missteps. Here&#8217;s how to approach buying property for the first time.<\/p>\n","protected":false},"author":439461,"featured_media":114009,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7390,7119],"tags":[],"class_list":["post-132716","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-acquiring-property","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/132716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/439461"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=132716"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/132716\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/114009"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=132716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=132716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=132716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}