If you’ve entered
the real estate market as a first-time homebuyer, you may be feeling a little
overwhelmed. And that’s totally understandable. It is the biggest purchase
you’ll ever make after all! But where do you start? What should you know before
investing in homeownership? Here’s the best advice for first-time homebuyers. Read on and put your mind at
ease.
Advice for First-Time Homebuyers
In a seller’s market, inventory is low. That means bidding
wars are going to happen. And the seller ends up selling for a higher price
than what the house was initially listed for. That’s great for the seller! But
this means you as a buyer need to be prepared and available to act quickly. You
should also be prepared to lose out on a few homes before purchasing the home
you really want.
1. Find Out How Much Home You
Can Afford
Speak with a mortgage broker (preferably several) and find out how much you can afford to pay for a home. And don’t forget to allow for the monthly costs of homeownership. There’s more to owning a home than paying the monthly mortgage. Owning a home means electricity, water, gas, sewer, and maintenance.
2. Know Your Credit Score
First-time homebuyers need to know
their credit score before doing anything. Lenders set their own credit score requirements
and may require a minimum score higher than 580.
3. Get Pre-Approved for a
Mortgage Loan
While knowing how much you can
afford is your very important first step, sellers will be much more receptive
to potential buyers who have been pre-approved. You’ll also avoid being
disappointed when going after homes that are out of your price range.
With pre-approval, the buyer
actually applies for a mortgage and receives a commitment in writing from a lender.
This way the seller knows immediately that you are a serious buyer for that
property.
Costs for pre-approval are
generally nominal and lenders will usually permit you to pay them when you
close on your loan.
4. Hire a Buyer’s Agent
Reach out to and hire a buyer’s estate agent, someone who is looking out for your interests, not the seller’s. It’s free.
5. Communicate Clearly Your
Lists of Needs and Wants
Make two lists. And be as specific
as you can be. The more specific you are, the more your real estate agent can
help you in finding the home that’s perfect for you.
The first list should include
items you must have (the number of bedrooms you need for the size of your
family, a one-story house if accessibility is a factor, etc.).
The second list is your wish list,
things you would like to have (pool, den, etc.) but aren’t absolutely
necessary. Realistically, you probably won’t get everything on your wish list
as a first-time homebuyer. But the lists will keep you on track for what you
are looking for.
6. Stay Focused and Be Organized
Keep the following items handy.
They’ll help you maximize your home search efforts.
- Maps – One or more detailed maps with the areas you’re interested in highlighted
- File – A file of the properties your agent has shown to you and ads you have collected
- Notebook and Pen – Take notes on each home you walk through
- Camera – A camera or video camera will help refresh your memory on individual properties, especially if you’re visiting more than five homes
7. Look at a Property with the Eyes of a Seller
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 and negative features of the
area? Think access to shopping, parks, freeways or abandoned properties, garbage
dumps, noise, heavy traffic.
8. Visualize the House Empty
and with Your Décor
Will the home meet your needs now
as well as three to five years from now? Are the rooms laid out in a way that the
home will accommodate your family? Is there enough light? What about outlets
and storage space?
9. Be Objective
Instead of thinking with your
heart when you find a home, think with your head. Too often, first-time
homebuyers succumb to their emotions and allow themselves to become attached to
a less than desirable property.
Spend time researching the local
market trends and make sure your finances are suitable for a home purchase.
Purchasing a property should never
be a rushed process. There are many houses on the market. Don’t make a hurried
decision that you may regret later.
10. Be Thorough
A few extra dollars well spent now
will save you big expenses in the long run.
- Include inspection and mortgage contingencies in your written offer
- Have the property inspected by a professional inspector
- Request a second walk-through to take place within 24 hours of closing (Check to see that no changes have been made that were not previously agreed upon. For example, a nice chandelier that you assumed came with the sale has been replaced with a cheap ceiling light).
11. Know the Home-Buying Process
Review the home-buying process with your real estate agent
- timing of a purchase
- costs you need to be prepared for beyond closing
costs - whether the market is a seller’s market or buyer’s
market
The Most Important Advice for
First-Time Homebuyers
Above all, the best piece of advice for first-time
homebuyers is to choose a real estate agent with these three qualities:
- Trustworthiness
- Excellent communication
- Quick responsiveness
Charles D’Alessandro is a real estate agent you will connect with personally and professionally. You feel comfortable confiding in and trusting him with the most expensive purchase of your life.
Need advice for first-time homebuyers? Contact Charles D’Alessandro, your Brooklyn Real Estate Agent with Fillmore Real Estate. Call (718) 253-9600 ext. 206 or email charles@brooklynrealestatesales.com and get your questions answered. He is the Brooklyn Expert connecting clients with Brooklyn homes for over 30 years. He knows the Brooklyn area inside and out.
Charles D’Alessandro
Your Brooklyn Real Estate Agent
718-253-9600 ext. 206
Charles@BrooklynRealEstateSales.com
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