There’s a lot they don’t teach you in school. One thing many look forward to is buying their first home. After going through the process, many wish they had more information ahead of time! I teach a first time homebuyer class and there are always a few that have been through the mortgage approval process and maybe even written an offer on a home. Frequently I will hear from students “I didn’t know that” and it’s always interesting to hear what students have been told or thought they knew. Here are some tips for first time homebuyers.
1 – You can’t put a price on a great Realtor. Some people think going to “For Sale by Owner” properties will save them money. Remember that the realtor fees are usually paid for by the seller. When you work with a realtor that knows the market, understands the process and has the experience to help you, it will lower your stress level and make the process much more enjoyable!
2 – You need to set your financial limits. One thing I stress to buyers is to set a budget, figure out what you are comfortable with in a house payment. Just because you qualify for a certain price, doesn’t mean you need to spend that much – or maybe you shouldn’t spend that much. I can frequently qualify clients for more than they want to spend. That is part of the reason I tell buyers to figure out what they are comfortable with in a house payment. You may have daycare that we don’t include, or maybe you have hobbies that take up part of your paycheck. You do not want to be house poor!!
3 – Get a home warranty. As a homeowner, you are responsible for your repairs – so when something breaks (and you know it’s just a matter of time!), you are the one that has to fix it, call a repair person and you get to pay the bill. With a home warranty, it helps cover those costs for the first year. It’s one way to help cover the costs and eliminate the worry about how you are going to pay for those repairs.
4 – Be prepared to move fast. Once you decide to buy a home, you will want to get your mortgage approval done so you are ready to move. The housing market has been hot for a while – many first time homebuyers are frustrated at how fast homes come on the market and disappear. They are also getting in multiple offers quickly. It means you may have to jump as soon as homes come on the market and make a decision quickly if you find a home you love. Having a realtor and loan officer that know what they are doing can make this process a little easier.
5 – If you see something, say something. This means if something doesn’t feel right, don’t ignore it. If you see something during a walk through that you are questioning, ask about it. If there is water damage or some other issue and you don’t address it before you buy, you will be responsible for the repairs once you move in.
6 – Be ready to walk away. This goes along with number 5. Buying a home can be exciting but it can also be stressful. If you find a home that you love and you start negotiating, be prepared to walk away if negotiations don’t go well. Don’t buy a home that you know you can’t afford – even if you qualify for it. Maybe you know you will have to do some renovations, maybe you are willing to spend a bit more but know your limits. Also sometimes if you walk away, the seller may come back and agree to your terms. This doesn’t always happen, but it may. Or maybe that home wasn’t meant to be. We found a home we loved when we were looking for our first home, we couldn’t come to terms with the seller. Two weeks later, another home even better came on the market and we were able to agree to terms with that seller – we were very glad our first offer wasn’t accepted!
7 – Listen to your own opinion over others. When you are looking for a home, it’s amazing how many people will give you their advice -whether they know anything or not!! Seek out professionals to help you – your realtor, loan officer – and value their opinion. Listen to your gut and know what you want. Follow what feels right and remember your goals and future plans.
Buying a home can be very exciting and also very stressful at the same time! Remember this, keep in mind that you have professional people helping you and it can be a fun experience!!
Leslie Vanderwerf, NMLS ID#335509, AMEC Home Loans, An Equal Housing Lender, NMLS#150953 – Email – Website
