For you 93% of Millennials who are currently renting but planning to buy your first home, here are six steps to assist you in the process and impress your friends who jump off the fence behind you.

Get Pre-approved By a Lender, Not Pre-qualified                                                                  

“What’s the difference?” you say? Getting pre-qualified is an unofficial estimate to help you determine how much house you can afford. Your loan officer will make an educated guess based on you submitting written or verbal information such as finances, income and amount of debt.

The pre-approval process involves having your credit checked, submitting bank statements, tax returns, statements from investment accounts and pay stubs to verify employment, assets and income. Once completed, you’ll be more confident moving forward and will have more credibility with the seller when you submit an offer on a home. That said, being pre-approved is still not a slam dunk on buying your first home in the next month or two.

Identify Potential Areas and Neighborhoods

One of several common mistakes first time home buyers make is falling in love with a house but not its location. Have kids now or are you planning a family? It may be wise to investigate schools or school districts. How long will your commute to work be? Check into crime statistics for particular areas, not only for the sake of personal safety but in helping resale value. Check out property taxes as they will affect your payment and affordability. Ask friends and co-workers who are homeowners what they like about their neighborhoods and their dislikes as well.

Hire a Real Estate Professional to Represent YOU Before Looking at Homes

As an exclusive buyer’s agent, (EBA), it’s my daily mission to educate the public on the nuances and pitfalls of real estate agency. Having an agent to look after your best interests at all times in the home buying process is critical. “Why don’t I just call the agent with the yard sign?” you ask? That’s a great situation: for the agent and the seller. (they're both about to cash in at your expense) What about the buyer? Not so much. The agent with the yard sign represents the seller and their best interests, not yours.

Hire the real estate professional who-

• Will represent only you in your purchase of any home on the market.
• Has extensive experience in working with first time home buyers in the market you are buying.
• When you ask yourself “Can I trust them with assisting me in one of the biggest decisions of my life?” and the answer is a confident “Yes!”

If your agent pushes their own listings on you or asks you to sign a dual agency agreement, find another agent.

Shop Your Mortgage

You are not locked into using the loan officer who pre-approved you. Not all lenders have the same rates and fees. You can save thousands of dollars by shopping the loan. Is your buyer’s agent not willing to do this or are they pushing you to their brokerage’s “in house” lender? If so, see “find another agent” above.

Get a Home Inspection

Your buyer’s agent should have a contingency in any contract that affords you the opportunity to have the home inspected by an unbiased, licensed professional. Having the home inspected can alert you to potential issues that may cause you to void the contract and find another home, or least have leverage to make the seller perform the necessary repairs. The piece of mind that comes with this investment of a few hundred dollars and possibly avoiding shelling out thousands after closing is well worth it in my opinion.

Tell the World!

Buying that first home is a major event in anyone’s life and a dream come true after much time, effort and soul- searching for many. Put those social media and blogging skills to work and share the incredible experience you've just enjoyed. Describe in detail the ups and downs of the process and the feeling of having the keys handed to you at closing. Give back and admit your mistakes so others can learn from them. Share what you would do differently the next time you purchase a home. 

The home buying process is a complex journey of many steps. Space won't allow us to cover them all in detail so feel free to comment or ask specific questions below.

Content Authored by Dale King