| Purchasing your first home is a big step, that comes | | | | help & insight will be invaluable - and you'll be glad |
| with some very serious decisions. Many homebuyers | | | | you contacted your Realtor sooner, rather than later. |
| are intimidated by the process, and continue renting | | | | 5) Make a List of "Must Haves" & "Wants" |
| much longer than they should, or need to. However, if | | | | Many new home buyers mistakenly think that they will |
| you break the homebuying process down into these | | | | "just know" when they "walk into the one." While some |
| simple steps, and follow these important tips, you will | | | | buyers DO fall instantly in love with a home, this is not |
| find the process less intimidating, and much more | | | | the norm. You'll find your search is easier, and you will |
| manageable. | | | | be more confident in your decision, if you take a |
| 1)Before You Begin, Ask Yourself One Question | | | | systematic approach to your search. The best way to |
| Will you live in your next home for at least 3 years? If | | | | organize your search is to make two lists: Your "must |
| the answer is "Yes," you should probably purchase, | | | | haves" and your "wants." Your "must haves" are the |
| rather than continue renting. With average appreciation, | | | | absolute necessities in your new home - in fact, you |
| you'll break even on your closing costs after 2 years, | | | | don't even need to view a home if it doesn't have |
| and start making money at year 3. Every year after | | | | every "must have." Great examples of your "must |
| that will put more money in your pocket! The most | | | | haves" are price, school district, size, etc... Your "wants" |
| expensive aspect of real estate is buying & selling, | | | | are the qualities that you would like for your new |
| so the longer you can live in the home the better. | | | | home to have, but it's not a necessity. Great examples |
| However, purchasing makes sense if you can make | | | | of "wants" are color, flooring, kitchen appliances, |
| as little as a 36 month commitment. | | | | surround sound, and type of exterior. By taking the |
| 2) You Don't Need a Down Payment! | | | | time to articulate what you need and want in your |
| It always surprises me how many people want to | | | | new home, you will know exactly what to look for |
| purchase a home, but don't because they believe that | | | | when viewing prospective homes. |
| a hefty down payment is required. Zero down | | | | 6) Pick Your Favorite Neighborhoods |
| programs are very common, and are quickly becoming | | | | You can always make changes to your house, but |
| the norm, rather than the exception to the rule. | | | | you can never change its location. Most home buyers |
| Because your new home is collateral for the loan, | | | | already have a good idea of where they would like to |
| there are many banks that will jump at the chance to | | | | live because of school districts, work, or other factors. |
| loan you 100% of its value. Perfect credit isn't a | | | | However, neighborhoods can be pretty different, even |
| requirement, either. Because real estate typically | | | | in the same area of the city. Ask your Realtor to email |
| appreciates in value, it's often easier to be approved | | | | you a list of homes in the specific area of town you're |
| for a 100% mortgage than it is to borrow 100% for a | | | | interested in. Take a drive through the different |
| car! | | | | neighborhoods on the list your Realtor sends you, and |
| 3) Get Pre-Qualified | | | | choose your favorites. Pay attention to area amenities, |
| Pre-qualification is a very important step, and the step | | | | how well the yards & common areas are kept, |
| that first time home buyers dread the most. Qualifying | | | | and if you see a lot of "for lease" signs - which can be |
| to buy a home is pretty easy and requires relatively | | | | an indication of a heavy rental area, and lacking in |
| little work for you. Pre-qualification is what gives you | | | | "pride of ownership." After you have picked your |
| buying power and allows you to make an offer on | | | | favorite neighborhoods, and you know your "must |
| your dream home when you've found it. More | | | | haves" and "wants," you can literally make a list of |
| importantly, pre-qualification will let you know how | | | | EVERY home available that meets your criteria, and |
| much your new home will REALLY cost - in monthly | | | | view those homes. |
| payments. A $150,000 or $300,000 home doesn't | | | | 7) Make Your Decision!!! |
| mean a lot to most buyers - but $1200 per month and | | | | Homebuyers often hesitate after they've found the |
| $2500 per month are tangibles that everyone can | | | | right home because they're not confident about their |
| understand. After your lender pre-qualifies you, ask | | | | decision, or their decision-making process. Your home |
| them for a "payment table" that shows you a rough | | | | is probably the largest investment of your life, and it's |
| estimate of TOTAL monthly payment based on | | | | normal to feel butterflies in your stomach before |
| purchase price. Pick your payment, and you know the | | | | putting your first home under contract. However, if you |
| price range to shop in. | | | | do your due diligence - and you have if you followed |
| 4) Consult a Realtor ASAP | | | | the steps above - then you will have your bases |
| Many first time home buyers avoid contacting a | | | | covered. If you've found a home that meets all of your |
| Realtor because they dislike high pressure sales. | | | | "must haves," most of your "wants," is in the right |
| However, Realtors have an advantage over traditional | | | | neighborhood, and in your budget - it's the home for |
| salespeople because they have access to the Multiple | | | | you! Don't wait and let another buyer take YOUR |
| Listing Service, which is a database that lists roughly | | | | home! |
| 99% of the homes for sale in a given market. This | | | | Buying your first home can seem very intimidating, but |
| means that your Realtor doesn't have to sell - he/she | | | | can be extremely exciting and manageable. If you think |
| merely presents your options. The most important | | | | that buying a home is right for you, it probably is. Make |
| qualities to look for in your Realtor are his/her | | | | sure and follow these important tips and you'll know |
| knowledge of your specific market and their willingness | | | | you made the right decision when you find your first |
| to help. Interview a few agents and choose one that | | | | home. |
| will help guide you through the process. You'll find the | | | | |