If you are thinking of purchasing your first home it’s never
too soon to get started with a plan. It’s
very important your plan is in place and you’re on the right track. Too many
newbies in the market and making offers on homes that they are not qualified to buy. I have
put together an easy guide to follow for getting started so you don’t find
yourself in hot water with a seller.
Your first step should be to find a mortgage professional
like myself to help you determined the best type of mortgage loan and the
amount you can afford based on your personal financial situation. The mortgage
professional can also help you review your credit report and history. It’s
important to do this early on so if there are any errors they can be disputed
and removed. It’s important to note that 80% of American’s have errors on their
credit report and clearing them up can take a few months.
Once you are ready your mortgage pro will be able to give
you a price range and you can go shopping. You can also figure out what type of
home and area you can afford, this should help you speed up the process. Fine
tuning your search will save time. Most
buyers start their search online, researching neighborhoods, home and agents.
There are several good sites like Realtor.com and Zillow you can explore and
narrow down your search or check with your local Board of Realtors for
information.
Your next step is finding a good Realtor. My advice, would
be to ask family and friends who they would recommend or your mortgage
professional. It’s important you work with someone who has experience with first
time homebuyers. A no-pressure and lots of patience agent. You will be high
maintenance your first time, trust me on this one and it takes a special kind
of agent to work with you. Interview several agents in the area you wish to
purchase and choose one that is willing to go the extra mile with you. You’ll
know soon enough if the agent you choose is the right one for you. If not move
on but it’s important you don’t bounce around from one agent to the next and
back again. Once you find a good agent hang on and be a loyal client, they work
hard and only get paid when you close your purchase.
Open Houses are a great opportunity to explore and walk
through some homes that are for sale. Meet the agents that represent the
sellers and get information about the area, schools and parks. If you go
without your agent be sure to tell the on-site agent you have a Realtor working for you, so there is no confusion about your representation.
Now that you have a mortgage pro and a Realtor working for
you, you need to trust in their knowledge and experience and listen to their
advice. I am not saying you should trust blindly by all means do your research
and educate yourself. They too should be helping to educate you along the way. Purchase offers
are done differently depending on the market you are in and your professionals
are your best ally to negotiating the best price and seller concessions. Many
markets are seeing multiple offers and buyers losing out to more sophisticated investor
buyers. Your agent is your professional negotiator looking out for your best
interests. Most Realtors do this well so listen to their advice but understand you make the final decision when it comes to your offer and contract provisions.
Remember how important this process is and start early,
understand that your decisions will affect you for years to come, buying a home
is a long term investment in most cases. Get as much information about the house
before you make an offer. Buying a home in most cases will be your biggest
lifetime investment so do it wisely and without rushing through the process.
Be sure to follow my blog for more information, my next
article post will be Five Mistakes most commonly made by First-Time Homebuyers.
Thank you for stopping by and please leave your questions or
comments I’d love to hear from you.
If you are interested in my FREE mortgage coaching here is a link for more information. You will learn a wealth of information to prepare you for your journey to homeownership.
Roxy Redenbaugh
ACMC Loan Consultant
Certified Mortgage Coach
Branch Manager
NMLS #269926
