First time Homebuyer Information

     

 

 The Spring and Summer Real Estate season is now upon us and things will start to pick up for buyers and sellers. Typically there are more houses coming on the market at this time of year so there is more to choose from if you are a buyer. Since Tax Credit has now expired, I expect sellers to be more motivated in order to get their houses sold. For a period of time just before the end of the credit, there was a buying frenzy as buyers tried to get houses under contract. There will be somewhat of a lull in sales now that the demand has subsided.

When you begin thinking about buying your first home, it can seem like an intimidating and overwhelming process. However, like most things in life, there is a process to go through and if you follow the steps the process usually goes fairly smoothly. I say usually because there can be bumps along the way such as finding the right house in your price range, quality issues with the house you love, financing questions, the seller won't accept the price you are offering, problems encountered during the inspections, etc. All of these problems can be either avoided or easily handled if you are working with experienced real estate professionals who are guiding you through the process.

The most important advice I can give is to follow the Home Buying Steps in order. Don't try to get ahead of yourself. It doesn't make any sense to start searching for a house before you find out what you are are financially qualified to purchase. For instance, you don't want to be out there looking at $300,000 houses when you are only qualified to purchase a $250,000 house. This is just a waste of your valuable time and energy.

Now that the Federal Tax Credit program has been extended and expanded, there will be increased competition for the houses that are available. And remember, the nice ones always sell the fastest. If you find a property you have a strong interest in, don't wait. Consider making an offer on the house before someone else does and you lose out. In recent weeks this has become very common and I expect it to continue.

6 Common First-Time Home Buyer Mistakes

1. They don’t ask enough questions of their lender or agent, and end up missing out on the best deal. Find out how much you will qualify to borrow and get a Pre-Approval letter from your lender.

2. They don’t choose the right lender. Not all lenders are the same and there is more to choosing a lender than finding the lowest rate and lowest fees. Ask any Realtor and they will tell you that the right lender can make the process smooth and efficient and the wrong lender can make the transaction a nightmare.

3. They don’t act quickly enough to make a decision and someone else buys the house. As the market picks up and we approach the end of the $8,00 tax credit, houses are selling faster and opportunities are being missed by those buyers who act too slowly.

4. They don’t find the right agent who’s willing to help them through the home buying process. Experience counts when it comes to agents. This is a tricky market right now and you need an agent that will help you find the right house, at the right price. There is a process that has to be followed, in the right order, or your purchase won’t be successful. You need an agent that is more interested in your success than in his commission.

5. They don’t do enough to make their offer look appealing to a seller. This is an important point. Your agent should sell your offer to the listing agent. I always include a detailed letter with all the offers I submit for clients that lists all the reasons why the seller should consider the offer

6. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years. This is another reason to choose an experienced agent. I always point out to my clients that they will be selling the house that they buy sometime in the future. There are certain qualities that a house must have if they want to be able to appeal to a wide range of buyers in the future.

What Every First Time Homebuyer Should Know
 

Buying your first home is an important and exciting investment in your future. It can also be an intimidating adventure. The problem is that you don’t know what you don’t know, and that lack of knowledge can cause you to make significant and costly mistakes. It doesn’t have to be that way though. There are many skilled professionals available to give advice and guide you through the process. There is also a lot of general information available from many different sources including the internet, books, videos, etc. but there is no substitute for the experience of someone who has done it before and is willing to guide you through the process from beginning to end. A real estate professional who specializes in working with first time homebuyers knows the steps and knows how to steer the new buyer through the maze to a successful conclusion.

Many buyers believe that the first step after deciding to buy a house is to go on the internet and start looking at houses. The process really begins long before that step is reached. Part of the decision to buy a house has to be asking yourself the question “can I afford to buy a house at this time, and if so, how much can I afford?” There are many factors that have to be considered in order to answer that question and the best source for help in answering that question is a loan officer from a reputable mortgage company or lending institution. All lenders are not the same so it is important to choose one with a stellar reputation that will be there when it is time to deliver the money to the seller. With the upheaval in the credit and financial markets in recent months, lending rules have changed dramatically. So not only do you need an experienced real estate agent, you need an honest, dependable lender that knows the new, ever changing, rules and is there to help the new buyer select the right loan program for them.

It isn’t enough for an agent to be able to write an offer and present it to the seller. Agents who help first time homebuyers must also be willing to be teachers who can take the time to fully explain the myriad terms used in real estate and guide them to a successful purchase. With an uncertain future in real estate, it is important to not pay too much for a house. You need good advice from an experienced agent to help you offer the right amount for your dream house. If the market continues to go down, you don’t want to be stuck with a house that is worth less than you paid for it. Buying a house isn’t complicated but there is a definite process that must be followed or the buyer most likely will lose direction and become frustrated. Remember, you are probably buying the most expensive investment in your life and you want it to be a successful, enjoyable experience.