First Time Home Buyer Tips

Buying a new home for the first time is a major life milestone. It’s also often an exciting one, as first-time homebuyers enjoy long afternoons visiting open houses, combing through listings, and planning the big move. But buying a new home can also be overwhelming. Home buyers also have to put together a down payment, find a real estate agent, juggle home inspections, closing costs, paperwork, and countless other expectations that go into the home-buying process. This is where a few first time home owner tips come in handy.

Here are some tips for avoiding common first time home buyer frustrations:

1.) Know Your Score & Financial Situation: No one likes to be reduced to a number, but when buying real estate, you need to know your credit score. Wondering how to buy a home for the first time? Most of the financial aspects of the deal will hinge on the buyer’s score. The higher the score, the better position the buyer is in to negotiate a favorable interest rate and obtain the necessary financing.

2.) Understand What Down Payment Will Work for You: Long before a buyer makes an offer on dream home, they saved money for a down payment. Conventional wisdom states that a prospective buyer will have 20 percent of the down payment in cash at the time of closing. These funds may come from savings, the sale of securities, gifts from relatives, or a loan from a 401(k). Mortgage companies may ask for documents to verify the sources of these funds.

3.) Decide What You Need in a Home: Buying a home—especially your first—is an exciting time. However, you may find yourself overwhelmed by the sheer number of choices. In addition to the style and location of your new home, you also have to decide: Are you looking for a starter home to sell in a few years, or are you ready to settle down into your forever home?

Knowing what you need will help focus your search and get the best house for your needs. Below is a series of questions to consider when determining the kind of house you should be searching for with your real estate agent.

It is recommended you sit down and make a list of 3 or 4 things you absolutely must have in a home. Everything else can either be added on at a later date, or you can wait until you can afford to purchase them in another home later home.

4.) Be Realistic About Your Purchasing Power: When home shopping it’s easy to get carried away, but you have to stay realistic. A buyer’s list of wants may be extensive, but in the end, they will have to choose a home that is well within their financial means. Getting pre-approved for a mortgage will give a buyer a sense of how much they have to spend when home shopping. Understand that changing certain variables like the neighborhood or bowing out of a bidding war can have a significant impact on a home’s price.

5.) Approach Your Home Search with a Plan: House hunting is a task that requires time and effort, whether your move takes you across town or across the country. If it’s a long-distance move, weigh the pros and cons of renting for a period of time as you settle in to new surroundings. At the very least, do some “homework” in advance. Read about neighborhoods, talk to locals, gather information. Don’t ever expect to find your new home in a single day. That really only happens on television! In fact, you might have to submit multiple offers before you reach a binding contract, especially in a competitive real estate market.

6.) Work With a Reputable Real Estate Agent: It can be tempting for inexperienced buyers to try to go through the home-buying process without a real estate agent, but there are simply far too many potential pitfalls they can experience when attempting to buy alone. Your agent will be able to guide you through any tricky situations, including contingencies, negotiations, and contracts that can make or break the deal when approaching closing. They are full of first time home buyer advice, as they have the experience of many prior home buyers and sellers to help you zero in on a home that will fit your needs the best.

Figuring out how to buy a home can be a confusing process for the uninitiated. Choose a qualified, experienced agent to advocate for you and guide you through every step of the process for a smooth transition into your new home.

Our team here at the Christie Realty Group is always here to help you find your perfect home. If you are looking for a trusted group of professionals to help guide you along your home buying or selling journey, give us a call today! 805.582.9500