FIRST TIME HOME BUYER TIPS

Owning a home is the American dream. It is typically the largest and most

important purchase you will make. A savvy homebuyer makes a conscious

decision and commitment to buy. They plan carefully, deal with financing and

ownership issues and listen to the advice of a professional REALTOR.

The Internet gives buyers exceptional access real estate information,

including home listings, however, the entire home buying process is complex

and is not something that can be learned with a couple of mouse clicks. By

selecting a REALTOR, you are choosing a professional who abides by a code

ethics and standards of practice and will have your best interests in mind.

Early in your relationship, the REALTOR will help you determine what type of

agency representation or relationship you want. If you desire representation,

you must enter into a written contract according to state law. A REALTOR will

provide invaluable guidance through a multi-faceted transaction.

Your credit history should be as clean as possible. Ideally you should get

copies of your credit history and make sure the facts are correct a few

months prior to your house search. Fix any problems you discover.

Aim for a home that you can really afford. For most buyers, your monthly

house payment can comprise up to 30 percent of your income. When a

homebuyer makes an effort to get pre-approved they gain two things 1.) how

much home is affordable and 2.) a good negotiating position. The latter being

extremely valuable in a heated sellers market when multiple offers are

presented to the seller at one time.

There are a variety of financing options available, including programs to assist

those challenged by affordability or credit concerns. Your REALTOR can help

guide you through the program that best meets your needs.

With preparation, searching for the right home can be accomplished in one to

three weeks depending on market conditions and your circumstances. Start

by creating a “needs” and “wants” list. Most first home purchases involve

compromise and your home is often a steppingstone toward owning the

ultimate home of your dreams. Everyone’s wants and needs enough

essentials to service their family adequately from bedrooms and baths to

kitchens and garages. It is a more difficult process for the buyer who cannot

live without certain amenities. Identifying what you want will help your

REALTOR find your ideal home.

6. How to choose the right house (narrow the field)

Take notes when touring homes. Record the ‘pros’ and ‘cons’ and your overall

impressions. Eliminate homes that do not measure up to your satisfaction.

This process will help narrow the field for your final selection. You may bring

your camera, although you will need permission from the homeowner to snap

pictures.

Your opening bid should be based on the sales trend of similar homes in the

area. Before making a bid, consider sales of similar homes in the last three to

six months. Your REALTOR can help you establish market values.

A rule of thumb is that a low first offer usually results in the buyer either

losing the home or ultimately paying more than necessary for the home. A

low offer puts the seller on the defensive. An offer that is too high can also

send the wrong signal to the seller, especially when the home was recently

placed on the market. A high offer may not only cost the buyer money, but

could cause the seller to be less agreeable with other terms and conditions.

Most lenders require a home appraisal. It is the lenders way to determine

whether the house is worth the price that justifies the mortgage you are

attempting to secure. One approach for you to be confident whether the

house is worth the price you agreed to pay is by scheduling a home

inspection. You should hire your own quality home inspector, an expert in

home construction (structure, mechanics, etc.), building codes and safety to

help determine if there are potential problems that could require costly

repairs down the road.

Be aware that major purchases during the home buying process may impact

the pre-approval process and jeopardize the buyer’s ability to finalize and

consummate a mortgage loan for the amount desired. Avoid non-essential

changes, if possible.

10. Prepare for your move

Numerous items need to be taken care of to make a smooth transition prior

to closing and moving into your home. Your REALTOR can help guide you with

a checklist of responsibilities including utility hook-ups, change of addresses,

necessary closing documentation, and scheduling a final walk-through. A final

walk-through of the new home usually takes place one to two days prior to

closing, verifying and resolving potential home issues.