Hire a Buyer’s Agent

One reason why some people may think that they don’t need a buyer’s agent is because they don’t understand how a buyer’s agent represents them throughout the home buying process. A buyer’s agent has experience within the location that you are searching. They know about schools, flood plains, shopping, flight patterns if the home is near the airport and much more. A buyer’s agent can help you find homes that fit within your price point. This agent is legally obligated to represent you, the buyer. They will negotiate contracts and walk you through the entire home buying process. Their loyalty lies with you. Your buyer’s agent knows all of the ins and outs of the entire buying process and can help you with every step along the way including taking you on home tours, previewing the properties for you, and helping you find movers, attorneys, and inspectors. A great buyer’s agent is an invaluable tool.

Hire a Mortgage Professional

Buying a new home can be a daunting endeavor. However, if you have the right mortgage broker, they can help guide you and educate you about the many different types of loans available in the market today. Once you are armed with information, you will feel much more secure in your home search. Your buyer’s agent should be able to suggest a reputable mortgage broker with whom they have worked and trust. A mortgage broker will investigate your financial history to ensure that your search is focused in the correct price range. They will also give you your pre-approval letter. Obtaining this letter allows you a better enjoyment of your home search because you can make an offer without worries over last minute disqualifications.

Go Out and Find Your Home

Go out and find your home. It sounds simple doesn’t it? However, there are some common blunders that will keep first time home buyers from finding a home that is truly right for them. For example, many first time home buyers believe that they will find the “perfect” home. Finding a “perfect” home as a first time home buyer is rare. Being a first time home buyer often means that you need to have vision. You may not be able to check off every single item on your dream home wish list. Perhaps you will have to live with out dated decor, old carpeting, or maybe the kitchen countertops aren’t granite. But, it is important to understand that there are very few cosmetic issues that can’t be changed. Some of these issues can even be negotiated into the contract by your buyer’s agent. Renovation loans also may be able to provide the funds for the desired changes. On the opposite end of the spectrum it can also be dangerous to fall in love with a specific home. Try to keep an open mind. If you fall in love with a home based on emotional factors, it can lead you to lose focus of other issues with the home that may be hard to deal with once you are actually living in it.

Make Offer and Go Under Contract

This is another area where it is a great help to have a buyer’s agent. A buyer’s agent can search out market comparables in the area where the home you’ve decided upon is located. What this means is that they will research the recent selling prices of other homes in the area. With this information, you can make an educated decision about how much you want to offer for the home. Negotiating is a great tool when buying a home. However, many first time home buyers expect to get a certain percentage off of the asking the price which may not be realistic. This is another way that knowing the comparable information for the area will come in handy. If the home is priced fairly based on the rest of the market, you may not be able to negotiate the price of the home as low as you might hope.

Hire an Inspector

A full inspection is a crucial part of buying a home. Inspections usually average around $500 and they are money well spent. No matter how great a home may appear to the naked eye, there can be many different underlying issues that could end up causing you undue stress that could be avoided by a full inspection. If issues are found during the inspection, your buyer’s agent can ask for them to be fixed by the seller before the sale of the home closes. If the issues are too large, you may have saved yourself from many future headaches. An inspection riddled with grandiose problems may be your signal to continue your home search. Your buyer’s agent will be able to guide you to a reputable inspector.

Purchasing your first home is an exciting time and transitioning from renter to property owner presents a long list of significant long-term benefits. Yet, there are numerous thoughts and fears many have when considering buying their first home.

When beginning the initial process of owning a home for the first time, most people spend a fair amount of time looking around for the perfect house, in the right neighborhood and in the right location. Selecting the right property that is a good fit on all levels and ensuring the location will meet all of your requirements is obviously a big part of making sure your short-term and long-term needs are met.

Sell your house fast in Chandler Az

However, as you get past the initial stages of simply looking at different properties and trying to determine your exact needs, you may find buying a home is a bit more involved than you first realized. Most first-time home buyers go through feeling a little overwhelmed at the beginning and a top-notch realtor can offer significant help for first-time home buyers.

 

Financial Help for First-Time Home Buyers

Plus 5 Important Tips

Think About Today and the Future

When you are looking around for the right home to purchase it is important to think about what will meet your needs today and in the future. Most of the time, buying a house is not only a financial commitment but also a commitment of time; meaning, you will probably live in the home for at least several years.

If you don’t have any children a small cottage on the lake might sound funny now, but if you decide to have kids in a few years it may become impractical very quickly. Thinking about your current lifestyle and how it might change in the coming years is an important consideration and can help make your home purchase successful on a long-term basis.

Choose a Realtor Carefully

Choosing the realtor you work with is a very important consideration, perhaps the most important. A good real estate agent can help make the home-buying process much easier and much more successful. Real estate agents have experienced professionals who know what to look for, what to be careful of and all the important details that you will need to take care of throughout your first home purchase.

Some real estate agencies offer special programs that can provide significant help for first-time home buyers such as down payment assistance, tax credits and special mortgage programs. There are even a select few real estate agents that are willing to give up a portion of their commission and offer it to home buyers as a cash-back rebate. If restrictions on cash back rebates exist due to guidelines of the lender, then buyers can apply the rebate towards closing costs instead. Either way, it is a significant financial bonus and can provide tremendous help for first-time home buyers.

Pay Attention to the Type of Mortgage You Accept

Knowing the price range of a home you can really afford is based on many factors such as your credit score and your debt-to-income ratio. Knowing your budget from the lender’s perspective is very important so you do not waste your time looking at properties that do not fit your budget and do not fit a lender’s criteria either. A well-seasoned realtor can assist you with the mortgage pre-qualification process so you are ready to not only make an offer on a property, but you are actually able to secure a loan and close on the property successfully.

In some trending real estate markets the seller will not even consider an offer unless the buyer has a pre-qualified certificate from a lender. Working with the right realtor who can help you get pre-qualified and who is also affiliated with multiple lenders, title companies and home inspection services will help you be prepared for a successful buying process. Additionally, it will allow you to negotiate on the selling price of a home from a position of strength.

The details, terms and costs involved with your mortgage are important for knowing how much a home will cost you on a monthly basis and over the length of the entire term of a mortgage. Knowing if there is a free down payment program associated with the loan, the interest rate, term and closing costs are just a few of the considerations you should be clear about before committing to a mortgage. One very important element of a mortgage is if the interest rate is fixed or variable.

A fixed interest rate will give you a set rate of interest for the entire term of the mortgage, which will result in a predictable monthly payment that is the same month after month from the very first month until the last payment is made. A variable rate mortgage will typically offer a fixed rate for a short period such as 1 year, 3 years or 5 years and then the rate will fluctuate based on a set parameter such as the London Interbank Offered Rate, also referred to as LIBOR.

Other Expenses In Addition to Your Mortgage Payment

We all know it is important to make sure you can afford the monthly payment for a new home, but what about the other costs involved with home ownership? Besides your monthly mortgage payment, there will be other costs involved with owning a home that some first-time buyers may not have thought about. Take some time to make a list of all the possible expenses that will fall under normal maintenance for any property you are considering.

For instance; will you need to maintain your yard up to the standards set by the neighborhood homeowners association which means purchasing lawn maintenance equipment or hiring a service to do it for you. What are the costs for your monthly water, electric and gas bills? Is there adequate WiFi and or cable service available and the fees associated with it.

Keeping a home in top condition is not only important for maintaining a quality standard of living and following the rules of the HOA, city ordinances or even just implied rules based on how your neighbors care for their homes but also for the resale value of a home.

Resale Value

When you look around at all the different properties available it is always a good idea to listen to the advice of your realtor on what homes present the best resale value opportunities. Depending on the area you are in, there will be certain properties that lend themselves to higher potential resale values due to the number of bedrooms, how much property the home sits upon, the school district or other factors.

An experienced realtor will know the area well and what will sell quickly. Listening to their advice will not only ensure a good decision today but can also save you from big headaches when you try to sell the property many years from now.

An Experienced Realtor is the Best Help for First Time Home Buyers

Buying your first home or even your next home can be a little intimidating and it does involve making several careful decisions. However, working with an experienced realtor who works for you specifically as your buyer’s agent rather than a transaction agent will help keep the process smooth and successful.

“We cannot imagine a better home buying experience. Our Realtor was professional, courteous, and straightforward and did whatever it took to get us a fair deal and made sure that we were buying a home that was right for us. On top of all of that, they offer a 1% rebate back on the purchase price of the home! I would recommend them without any hesitation… you simply won’t find a better realtor. They gave us $3850 cash rebate when we purchased our home through them. Thank you Kellie and Kent Lighthall.”

Stay on your goal to purchase your first home and explore the available programs offered by some realtors; like down payment assistance and home buyer’s cash back rebate program as both are available to all home buyers first time or next time purchasers.