Achieve your New Year Resolution of Buying a Home
A new year’s resolution is an exciting way to start a year — especially when it is about buying a new home, and even more so for first time homebuyers. But as most of us know, all the inspiration and excitement around a resolution could run out faster than the first month if you don’t have a plan.
To help you stick to your New Year resolution, here are a few ideas.
Work out the finances
Before you begin house hunting, it’s important to have an idea of the financial requirements and your financial situation.
Make use of an online mortgage calculator or get pre-qualified to gain an idea of how much financing you would qualify for and get a clear understanding of the numbers involved. Consider the down payment plus closing costs, as well as what a monthly mortgage payment might look like. This will give you an idea of how much home you can afford and what you are saving money for.
As you save, also check your financial readiness from a financier’s point of view. Get a copy of your credit report and gain an understanding of what your credit history looks like. Your credit score is important to financiers, so if if needs any work, start early. Pay bills on time and don’t open or close accounts at this time.
If you’re considering a riba-free mortgage, get a clear orientation from your Islamic home finance provider and understand how it differs from the conventional mortgage system. Not all Islamic mortgages are created equal, so make sure it is not funded by a riba-centered bank. Also find out what kind of payment assistance programs might be available, especially if you are a first-time home buyer.
Once you have the financial picture in place, you’re halfway through with your resolution.
Choose the right type of home
When considering buying a home, evaluate your lifestyle, needs, and goals. The type of home you choose will play a significant role in shaping your daily life and financial responsibilities. Let’s explore why someone might choose each type of home:
Traditional Single-Family Homes
A traditional single-family home offers independence and space. This type of home is ideal for individuals or families who value privacy and enjoy having a yard or outdoor space. You have complete control over the property, allowing you to personalize and modify it as you see fit.
However, with this freedom comes the responsibility of maintaining the home and its surroundings. Tasks such as landscaping, exterior repairs, and snow removal will fall entirely on you.
If you have the time and resources to manage these responsibilities and need more room for a growing family or hobbies, a single-family home may be the perfect choice.
Townhouses
Townhouses strike a balance between single-family homes and condos. They typically share walls with neighboring units but often come with small yards or patios. This option is great for those who want a bit more space than a condo offers but don’t want the full responsibility of maintaining a large property.
Homeowners’ associations (HOAs) usually handle exterior maintenance, which can save you time and effort.
Townhouses are often located in planned communities, offering amenities like pools or parks, making them an attractive option for families or individuals who enjoy a sense of community without the burden of extensive upkeep.
Condos
Condos are an excellent choice for individuals with busy schedules or those who prioritize convenience and low-maintenance living.
In a condo, the homeowners’ association typically handles all exterior maintenance, including landscaping, roof repairs, and even some utilities. This makes condos particularly appealing to professionals, retirees, or anyone who travels frequently.
Condos often come with shared amenities such as gyms, pools, and social spaces, providing added value and convenience. However, it’s important to consider HOA fees and rules, which can vary widely.
Choosing the Right Option
Your choice should align with your own homeownership goals, expectations, lifestyle, and budget.
If you envision hosting backyard barbecues or need room for pets and children to play, a single-family home might be your best bet. If you’re looking for a blend of space and convenience, a townhouse could be the ideal middle ground. For those who prioritize a lock-and-leave lifestyle with minimal upkeep, a condo offers unmatched convenience.
Take the time to reflect on your current and future needs to make a decision that suits you best.
Get help from an agent
Buying a home can be an exciting yet overwhelming journey, especially when you’re navigating through intricate paperwork, document reviews, and inspections. This is where professionals can make all the difference. Their expertise ensures that every step is handled efficiently, from negotiating prices to managing inspection details.
Partnering with a skilled and reputable real estate agent means you’ll have someone in your corner who understands the market and can advocate for your best interests. They can spot potential red flags during inspections, guide you through the fine print in contracts, and help you secure the best possible deal.
If you don’t have a real estate agent yet, you can find a trusted agent through Guidance Home Services agent. These professionals are equipped with industry knowledge and a commitment to making your home-buying journey as easy as possible.
Strike a balance between facts & feelings
When choosing a home, it’s essential to strike the right balance between facts and feelings. While emotions often guide us toward places that feel right, making an informed decision based on tangible factors ensures that your dream home is a smart investment.
Start your home search by analyzing the facts: the home’s location, size, price, and condition. Does the neighborhood offer the amenities your family needs, such as good schools, parks, or shopping centers? Is the commute manageable? Consider the home’s structural integrity, age, and potential maintenance costs. A professional home inspection can uncover hidden issues that might not be visible during a casual visit.
Additionally, consider the home’s value. Even if you’re planning to stay for the long term, understanding the potential for appreciation can safeguard your investment. Research similar homes in the area to compare pricing and value, and don’t hesitate to ask your real estate agent for detailed data on the local housing market.
Once you’ve armed yourself with facts, let your emotions come into play. A home isn’t just a financial asset—it’s a place where memories are made. Take a stroll through the neighborhood and imagine your daily life there. Does it feel welcoming? Does the home inspire a sense of comfort and belonging?
By blending the heart’s pull with the mind’s logic, you’ll find a home that not only feels right but also meets your practical needs. After all, they say, “Home is where the heart is”—but it’s also where the facts add up.
Make a timeline
Buying a home is a significant milestone, and creating a realistic timeline is essential to make the process manageable and stress-free. By breaking the home purchase journey into smaller, actionable steps, you’ll stay organized and motivated from start to finish.
Start by setting a clear goal for when you’d like to move into your new home. This target date will help you work backward and allocate time for each phase of the home buying process. Here’s an example of what a typical home-buying timeline might look like:
- 6 Months Before Purchase
- Assess Your Finances: Check your credit score, reduce debts, and save for a down payment.
- Research the Market: Explore neighborhoods, schools, and amenities that fit your lifestyle.
- Get Pre-Approved: Secure pre-approval for a mortgage.
- 3 Months Before Purchase
- Hire a Real Estate Agent: Partner with a trusted professional who knows the local market.
- Start House Hunting: Attend open houses and refine your list of must-haves and deal-breakers.
- Organize Your Documents: Gather essential paperwork like tax returns, pay stubs, and bank statements for the mortgage application.
- 1-3 Months Before Purchase
- Make Offers: Once you find the right home, submit competitive offers and negotiate terms.
- Schedule Inspections: Hire professionals to conduct an inspection and home appraisal and ensure that the property meets your expectations.
- Finalize Your Mortgage: Work with your financier to lock in your rate and complete the underwriting process.
- Final Weeks Before Closing
- Conduct a Final Walkthrough: Ensure the property is in the agreed-upon condition as you head into the closing process.
- Prepare for Closing Costs: Budget for fees like title insurance, appraisal, and attorney services.
- Close on Your Home: Sign the paperwork, get the keys, and celebrate becoming a homeowner!
By following a timeline, you can tackle each step with intent and confidence. Keep a task list that you review daily or weekly to track your progress. Celebrate small wins along the way, such as getting pre-approved or finding a great real estate agent, to keep your momentum going.
Remember, flexibility is key—unexpected delays or challenges can arise, but having a timeline will help you adapt and to stay focused and on track. Day by day, you’ll feel one step closer to owning your dream home.
Ready to Get Started?
Buying a home is one of the most important decisions you will make. The team at Guidance Residential is here for you, from the first step of pre-qualification or pre-approval, on through to finding the right real estate professional for you and your family — or refinancing a home you already own. We invite you to explore the home buying process with Guidance Residential today. You can also instantly calculate an estimate specific to your personal situation with our finance calculators online.
Guidance Residential remains the #1 U.S. Islamic home financing provider, with more than 40,000 families assisted over more than 20 years. Learn more about our co-ownership model of Islamic home financing, and get started on your home finance journey today.
Your Guidance Residential Account Executive is here to help with any questions. Looking to refinance or purchase? Have a friend or family member who is looking for a home? Call 1.866.Guidance, or start an application today.
Originally published in January 2015, updated December 2024.
