Advice for First-Time Buyers
Buying a home is a major step in anyone’s life. You should prepare yourself by making a few preliminary decisions to determine what you want and can afford. Following the steps below can make your life much easier.
Tips on Buying a Home
· Plan Ahead: List out your sources of income, savings, monthly expenses, and other cash-flow considerations.
· Pre-Qualification: Meet with a mortgage broker and find out how much you can afford to pay for a home.
· Pre-Approval: While knowing how much you can afford is the first step, sellers will be much more receptive to potential buyers who have been pre-approved. Also, you’ll avoid being disappointed when going after homes that are out of your price range. For pre-approval, the buyer actually applies for a mortgage and receives a commitment in writing from a lender. This way, assuming that the house you desire is at or under the amount you are pre-qualified for, the seller knows immediately that you are a serious buyer for that property. Costs for pre-approval are generally nominal and often lenders will permit you to pay them when you close your loan.
a. What style of home do you prefer – two story, ranch, split-level, something else?
b. What size of home do you need – number of rooms, baths?
c. What are your priorities in home features – garage, gourmet kitchen, main level master?
d. Is it important to you to have additional space that could be finished such as an attic or basement?
e. What outside natural features are most significant to you – woods, hills, streams, lakes?
f. How close to work, shopping, schools or recreational facilities do you want to be?
g. How long of a commute do you want?
a. One or more detailed maps with your areas of interest highlighted
b. A file of the properties that your agent has shown to you, along with ads you’ve cut out from the newspaper.
c. Paper and pen, for taking notes as you search
d. Instant or video camera to help refresh your memory on individual properties, especially if you’re attending a series of showings.
· Location: Look at a potential property as if you are the seller. Would a prospective buyer find it attractive based on school district, crime rate, proximity to positive (shopping, parks, and freeway access) and negative (abandoned properties, garbage dump, source of noise) features of the area?
· Visualize the House Empty & With Your Décor: Are the rooms laid out to fit your needs? Is there enough light?
· Be Objective: Instead of thinking with your heart when you find a home, think with your head.
a. Does this home really meet your needs?
b. There are many houses on the market, so don’t make a hurried decision that you may regret later.
· Be Thorough: A few extra dollars well spent now may save you big expenses in the long run. Don’t forget such essentials as:
a. Include inspection & mortgage contingencies in your written offer.
b. Have a property inspected by a professional inspector.
c. Request a second walk-through to take place within 24 hours of closing. You want to check to see that no changes have been made that weren’t agreed on. For example, a nice chandelier that you assumed came with the sale having been replaced by a cheap ceiling light.
All of the above may seem rather overwhelming. That is why having a professional represent you and keep track of all the details for you is highly recommended.