Prepare to be a 1^st Time Buyer

The steps to being a successful first time home buyer are simple and straight forward and very important. If you are consulting with an excellent real estate professional you already know them. If you are new to the process and would like to work with me, please call or e-mail at your convenience. Here are the basics to get you started.

Save some money.

Talk with a Realtor. Most Realtors are chosen based on referrals, homes they have listed in the areas you want, or on strong website information. Nevins Realtors wants to be your Realtor. I would be glad to talk with you at your convenience or if you are not quite ready, feel free to ask any questions you may have through e-mail.

Talk with several lenders. Be sure you are talking to a reputable lender who has been in the mortgage market for many years. You will be working closely with this person – so be sure it is someone you trust to give you sound advice. You may not hear what you want to hear from them – but a lender who will be honest is always the best bet.

Save some money.

Your first home need not be the home of your dreams. You will statistically stay in this home for less than five years. Be realistic and start with a home that is affordable. Consider your life style and what the near future holds. Do you have children? Will one of you need to leave your job for a period to provide child care? Do you want to devote time and money to a home that needs work or do you need a “ready to move in” house? Think about where you want to live – close to your job, schools, family, etc.

Save some money…..see a pattern here.

Think about the expenses that come with home ownership. Insurance, utilities, repairs, lawn equipment, furniture.

Do not make any major purchases while you are in the home search and loan approval process. A car payment may keep you from qualifying for a home. Also, let the furniture wait till after you close on your home.

If this advice discourages you it is not intended to do so. Most 1^st time buyers qualify without any difficulty. The key is steady employment and a good credit score. Recent years have brought about a trend in the market which gave buyers the idea that “no money” was needed to buy a home. That was true for a time because lenders were willing to take risks that were just too high to get buyers into homes. The result is the current market – very high foreclosure rate and many homes just sitting on the market. So the lending market has adjusted. 100% financing is no longer easily accessible. VA and FHA loans are of course still available. The easiest solution to the problem is to begin saving for a home. Turn the clock back to the era when your parents were buyers. Having a down payment and funds put aside for emergencies will make you a better buyer and give you peace of mind. It doesn’t have to be 20%, but at least enough money to have 3-10% plus your closing costs. Remember if you ask a seller to pay your costs (which they very often will do) you will pay more for the house.