I recently started the process of buying a home. Since one of the goals of the American Dream is to purchase a home, most college students strive for that point after graduation. I have a few tips for you, and they’re really important, so pay attention.

First off, save up a lot of money. Think you have enough? Nope! Save up some more. Start a savings account and put some money aside each month. I’m not kidding when I say that even starting the process to buying a home is expensive. Even if you’re lucky enough to get a US Department of Agriculture (USDA) rural development loan (Chickasha qualifies, by the way), which allows you to finance a down payment, you will still need a lot of money out of pocket. I had to pay $500 earnest money, basically saying that I promise to buy the home. To pay the appraiser was another $400.

Next, do some research on the area you want to live in. I planned to buy a house in Chickasha, so I did some research on the types of homes that are here and how much they cost. Not only did I look at home prices, I looked at and compared utility prices. Other very important factors include property taxes and home insurance, but we’ll get to that in a minute in the ‘how much you can afford’ section. Look at the different neighborhoods and crime rates. Would you want to live close to a park? A school? More importantly, is this where you want to live for the rest of your life?

Have an idea of what you want in a house, and how much you can afford. I highly suggest getting a realtor, because they are extremely helpful. Having an idea of what you want will give the realtor a better idea of what they can get for you. For instance, I really wanted a house with at least three bedrooms. I wanted two bathrooms but would be fine with just one. The most we could afford was about $72,500. My realtor really pulled through for us and found a home that was perfect. Of course, we had to cycle through and tour about ten homes before we found it.

Now, how much can you REALISTICALLY afford to pay? You HAVE to be realistic in this one because this isn’t a rent house you can just move out of if it gets too expensive. This is a legally binding contract that says you’ll pay for this house until you sell it. You also can’t just think about a mortgage payment. There are also utilities, property taxes that vary from town to town, and also home insurance that come into play. The taxes and insurance all go into the monthly payment. You can choose to pay these individually, but it’s simpler if the payments are rolled into one package. Also, since you own your home, think of any repairs that will have to be done. Can you do those repairs? Can a family member do them? If not, you have to pay for the repairman to fix any problems for you.

Ask lots of questions. If you have any questions, your realtor will be happy to answer them. It’s a free service realtors provide to the buyer. As a buyer, having a realtor is FREE to you! If you’re unsure about anything, ask your realtor. Ask about any issues with the home, the area, closing costs, anything. It is much, much better to be informed.

Understand that it is a waiting game. There is going to be a lot of waiting time. You’ll have to wait while your realtor finds more properties for you. You’ll have to wait while all the information is gathered. You’ll have to wait while the lender and the closing company go through all of your information and process it. It’ll drive you crazy, but they need to be thorough. Also, be sure to have everything ready and be prepared. It definitely helps things go along much more quickly.

Good luck, and relax! This is an exciting time in your life! If you save up the money, are prepared, and are patient, buying a home will be a lot of fun and the stress levels will be much lower. Wish me luck on buying my home!