Tips For the First-Time Home Buyer
You're finally ready to make the big step and put a down payment on a house. Before getting overwhelmed with the process, there are a few important things to take into consideration and remember when looking for your home.
Getting Started
You're finally ready to make the big step and put a down payment on a house. Before getting overwhelmed with the process, there are a few important things to take into consideration and remember when looking for your home.
Getting Started
- Get approved: It's really smart to be pre-approved with your mortgage so you know how much you can spend and you can be
competitive with the bidding. I have a wonderful lender that is patient and knowledgeable with home buyers throughout the process. - What do you really need? Make a list of things you don't need and share it with me. For example, sharing that you can
live without an ensuite bathroom or a fully updated kitchen might help in a competitive market. - Budget right: Just because you're approved for a certain amount doesn't mean that number actually fits your budget. Before even
thinking about seriously putting an offer on any home, take a look at your monthly financials to determine how much of a mortgage you can really take on.
- Location, location, location: Buy for the neighborhood, and then the house, where you live is key. It's better to have the worst house on a great block than the best house on a bad block.
- Personal tour: If they're willing, ask the sellers for your own walk-through. While your visit with the real estate agent is meant to confirm that everything is as it should be, a one-on-one walk-through with the sellers offers the opportunity to ask specific questions about everything from which spot in the backyard gets the best sunlight to when a refrigerator was last replaced.
- Get organized! When you get all your paperwork together to get pre-approved, keep it handy because you'll need it again (and usually
additional paperwork) when you actually apply for a loan. And be prepared to spend time making copies and faxing documents.
- Don't stop looking: It can sometimes be a longer process than you planned but don't give up.
- Write a letter with your offer: Be flattering to the owner about why you love their home, in addition to sharing details about yourself. And don't be afraid to get personal, which might help the seller be more willing to budge on price.
- More cash down: Consider making an offer with more cash down than you will actually end up using. The more you put down in the
offer, the easier it is to compete with all-cash. - Close right: Ask about closing costs up front. This way you'll know how to budget when making an offer.
- Think big: Try not to get too connected to a home. Don't get caught up in the seller's furniture or wall color — you get to change
all that when you buy the home. Think about how the property will appreciate in time and if it's worth the investment.