Recently I have the fortune to help three
First Time Home Buyers with the purchase of their first home. As a Real Estate Professional, I take a certain amount of pride and greatly enjoy when a Buyer receives their first set of keys. The look of wonder on their face when they realize they no longer have a Landlord, they can hang as many pictures as they want, and they don't have to worry about getting a security deposit back.
Of course, owning a home comes with a great deal of new tasks and responsibilites but often the tasks are much more welcome. "I get to clean the leaves out of MY gutters." "I can paint my house any color I want!" "What do you mean I need to fix my own toilet?"
My blog today is not about the rigors about home ownership or the great investment that it is for a family. No, today I'm trying to reach the person that isn't sure about how they get to the point of mowing the lawn and checking the lint traps. Although every single real estate transactions is different, there are many common occurences that persist through almost all of them. This article is to be used as a guide with advice, not a tutorial with concrete solutions.
STEP ONE- Deciding what kind of house to buy, and how much of it.
First, ask yourself how much you can afford to pay for a home. If you're not sure on the price range, find a lender and get pre-approved. Pre-approval will let you know how much you can afford, allowing you to look for homes in your price range. Getting pre-approved also helps you to alleviate some of the anxieties that come with home buying. You know exactly what you qualify for and at what rate, you know how large your monthly mortgage payments will be, and you know how much you will have for a down payment. Once you are pre-approved, you avoid the frustration of finding homes that you think are perfect, but are not in your price range.
Second, ask yourself where you want to live and what the best location for you and your family is. Here are some things to consider:
STEP TWO- Getting Prequalified for a Mortgage.
It used to be that buyers could go house shopping and when they have found their dream home, then they go to get pre-approved. However, in today's market, that has proven to be one of the least effective methods in landing the dream home.
Most lenders can pre-qualify you for a mortgage over the phone. Based on general questions about your income, debt, assets, and credit history, lenders can estimate how much mortgage you qualify for. However, being pre-qualified and pre-approved are different things. Pre-approval means that you have applied for a mortgage; you have filled out the mortgage application, received your credit report, and verified your employment, assets, etc. When you are pre-approved, you know exactly what the maximum loan amount will be.
A pre-qualified letter is not verified and in essence, does not count for much if you are competing with other buyers who are pre-approved. When you are pre-approved, you and the seller know exactly how much house you can afford. It gives you credibility as an interested buyer and lets the seller know immediately that you will qualify for a loan to buy their property.
In addition to being pre-approved, it's important to be pre-approved with a legitimate lender. Legitimate lenders include: banks, mortgage bankers, credit unions, savings and loan associations, mortgage brokers, and online lenders.
Some lenders to avoid: those who lose a form or misplace a file, those who gather information from you in an unorganized manner, those who are not informed about interest rates, points or costs, and those who cannot provide you with the right information.
STEP THREE- USING A BUYER'S AGENT!
It's important that you choose an experienced agent who is there for you. Your agent should be actively finding you potential homes, keeping you informed of the entire process, negotiating furiously on your behalf, and answering all of your questions with competence and speed. Look at an Agent as an extension of you. An Agent is not allowed to make decisions for you. A
Real Estate Professional is there to give you advice, make you aware of what implications there are, help you investigate a property, and ultimately help you negotiate a purchase price that is in your best interest.
First, find an agent who represents you and not the seller. This is beneficial during the negotiation process. If you are working with a buyer's agent, he or she is required not to tell the seller of your top choice. In addition, he or she is also focused on getting you the lowest asking price.
Also, when you use a
buyer's agent, you will see more properties. Not only are they plugged into their Multiple Listing Service, but they are also actively finding homes that are listed as FSBO, or homes that sellers are thinking about listing.
STEP FOUR- Get a Home Inspection.
As a buyer, you are entitled to know exactly what you are getting. Don't take anything for granted, not even what you see or what the seller or listing agent tell you. A professional home inspection is something you MUST do, whether you are buying an existing home or a new one. An inspection is an opportunity to have an expert look closely at the property you are considering purchasing and getting both an oral and written opinion as to its condition.
Beforehand, make sure the report will be done by a professional organization, such as a local trade organization or a national trade organization such as
ASHI (American Society of Home Inspection). Not only should you never skip an inspection, but also you should be present with the inspector during the inspection. This gives you a chance to ask questions about the property and get answers that are not biased. In addition, the oral comments are typically more revealing and detailed than what you will find on the written report. Once the inspection is complete, review the inspection report carefully.
You have to demand an inspection when you present your offer. It must be written in as a contingency. If you do not approve the inspection report, then do not buy the home. Most real estate contracts automatically provide an inspection contingency.
STEP FIVE- Closing
It's the big day.
The day you go to the title or escrow company, sign your name on the dotted line, hand over a check and prepare to take ownership of your new home.
It's also the day that you and the seller will pay "closing" or settlement costs, an accumulation of separate charges paid to different entities for the professional services associated with the buying and selling of real property.
As I had mentioned before, every Real Estate Transaction is different. There are some where the whole process is quite smooth and there are others where problems can come from every direction. Your Real Estate Professional should be well equipped and experienced to handle these problems, if they arise.
Buying a Home is almost always the largest expenditure that someone will make in thier lifetime. It's where their children will grow and where their memories will be made. It will also be a source of financial security and retirement benefits for other in their Golden Years. This blog post is to be used as a guide and there are many more aspects that did not make it into this posting. Please feel free to
contact me if you need have any questions or concerns. If you are looking for representation in your next real estate purchase I would be more than happy to setup a time for you to interview me. Either way, I welcome your questions and concerns and wish you 'Happy Holidays!'.
Sincerely;
Braden Halter
EXIT Advantage Realty
Fairfax, VA
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