Tips for First Time Buyers

When the time comes, and you are in the market for your first home, you will probably have lots of questions. You will be on your way to making an important decision for your future and a great investment. I want to help you make sound, informed decisions. Here are some tips that can help make your home buying process successful:

Tip #1: Do Your Homework

The perfect home won’t find you by itself. The key step in buying a home is doing the proper research. Educate yourself on local schools, neighborhoods, and the kinds of homes available. By reading available materials and talking with experts, you can start to put together your idea of the perfect home.

Tip #2: Start Planning

Most decisions benefit greatly from proper planning, and home buying is certainly no exception. Start a filing system with sections such as home buying, home financing, and service providers. By forming a home buying plan you can more easily focus on the most important factors and help give structure to the entire process.

Tip #3: Get Pre-Qualified

Getting pre-qualified¹ for a loan normally only requires a short phone conversation with a lender, and can greatly help your home search. Pre-qualification does not guarantee you a loan, but it does provide you with an estimated monthly payment and a price range to use as a guide when shopping for homes. Being pre-qualified can also often indicate to sellers that you are a serious, prepared buyer.

Tip #4: Look for Value

When shopping for homes, it’s important to consider potential value. Even if you’re not planning to sell the home some time down the line, it’s a good idea to consider the future value of the home. Protect yourself against things like falling prices and gradual shifts in the nature of the neighborhood. You may not think of a new home as a means to make money, but it’s an important investment that requires caution.

Tip #5: Decide What You’re Looking For

Settle on the home features that are important to you (covered parking, hardwood floors, architectural style, etc.) and make an ordered list. Having well established guidelines will help narrow down your search and will prevent you from being shown properties that lack your key amenities. It can help you make the decision not to buy an attractive property that doesn’t really fit your needs.

Tip #6: Relax

You don’t have to make an offer on the first home you see. Make sure to look at other listings in the area to get a feel for the marketplace.

Tip #7: Shop Around for Your Mortgage

Deciding on the financing for your home can be as important as choosing a home itself. The first step is deciding what kind of loan best fits you: a fixed-rate mortgage², or an Adjustable-Rate Mortgage (ARM)³. There are benefits to each form of loan, and I can provide you with more information. Next you’ll want to begin to shop around for different lenders.

Tip #8: Protect Yourself

Be careful when signing a contract on a home that allows you to find financing, have the home inspected, and work through any problem areas that may arise. Paying for a quality home inspection is absolutely crucial. You can save yourself thousands in repair costs by being sure of what you’re getting into.

If you would like more information for first time home buyer, please get in touch.

1. The process of getting pre-approved is actually quite simple. All you have to do is provide your lender the documentation that they require. Be prepared to supply your loan representative with pay stubs, bank account statements, tax returns and W-2 forms from the previous 2 years, and documents to show other sources of income (which could include a second job, overtime, commissions and bonuses, interest and dividend income, Social Security payments, VA and retirement benefits, alimony, and child support). – Get Pre-approved [↩]
2. In a fixed-rate mortgage, the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or “float.” – Fixed Rate Mortgage [↩]
3. In an ARM, the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets. – Adjustable Rate Mortgage (ARM) [↩]

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