Tips for a First-Time Homebuyer: An Efficient Way Own Your First Home

Don’t worry.  We’ve got you covered with important things to think about on your journey to ownership.

• Before you even start looking, know what you can both afford, and qualify for.  Mortgage calculators are available online, but the best first step is to consult a mortgage lender for a reality check.  Tell them you’re a first-time homebuyer, and ask if they can assess your situation first- with a “soft” credit search.  They may not need a formal credit pull to evaluate your situation.  If you happen to be a first-time buyer with cash, be prepared to explain how you were so fortunate, and how long you’ve had it.

• Ask the lender for a Pre-Approval letter that would justify your ability to complete a purchase to a seller.  It’s usually presented at the time of submitting a purchase offer.

• Know your “must-haves”, for minimum home features, location, and timing.

• Find and interview Realtors (we’d of course like to be considered. :0).  A quality Realtor will be able to confirm the current market conditions, process, and negotiate on your behalf.  That means identifying the appropriate available properties that match your needs, and price range, and schedule showings that match your time requirements.  New legislation passed this past August will require you sign an agreement with your Realtor before being shown homes, either in person or virtually.  Ask for a complete explanation of your options involving either a “customer”, or “client” relationship, prior to touring homes, and also how your Realtor will be compensated for their services.

• As soon as you find the best home match, be prepared to submit and offer, as time is of the essence in Real Estate transactions.  You are about to enter in to a contract to purchase and should be able to understand the components of the contract.  If your agent isn’t able to help you understand, you should always consider consulting a Real Estate Attorney for clarification.

• Know your contract timelines and deadlines to avoid default.  Escrows are typically 30-45 days (but can be more or less), depending on negotiations, for each circumstance.

• Get a home inspection from an experienced professional.  These typically run about $400, and are invaluable compared to the $300k - $400k you are about to finance.  Discuss the findings with your Agent- and target the most concerning (if any) in an Inspection Contingency counter-offer.

Let’s get started- “YOUR FIRST PROPERTY- RIGHT NOW!” is an achievable goal, with the right representation.  Some opportunities justify early lease terminations- and start you on the path to equity and wealth building, while enjoying pride and privilege of doing whatever you want, to your own property.  Oh, yah.  I guess I should throw out there, to ask your Realtor about CCR’s (Covenants, Conditions, and Restrictions), and HOA’s (Home Owner’s Associations).

Take the first step!  :0)