Here to Help First Time Home Buyers

Robby (Your Realtor)Here to Help First Time Home Buyers

Below you will see some great information (some from my friends at the KCM blog, some added by me) for First Time Home Buyers. Some addidtional pieces of info that you will want to know as a First Time Home Buyer is the actual process that you go through to make an offer and the subsequent steps that follow. This is why you want to sit down with a Realtor (me) as part of your upfront learning process so when you start searching and find the home you want to make an offer on, you feel you are ready to make a "wise and informed" decision.

There are many different Mortgage programs available to you as a First Time Home Buyer depending on your particular situation so it isn't about just getting a pre-approval letter from a Lender. You want to work with one that is able to provide this knowledge of "options" to you and not just what "their" company allows.

To find out more about your options as a First Time Home Buyer contact Robby (Your Realtor) on 206-910-1632 and check out our website as well. 

To get all your mortgage questions answered by and expert that teaches these programs contact Debbie Leviton, Guild Mortgage 206-406-1058

1.) Understand your life needs -Establishing a Realistic Price Range

Putting together a total life plan on what you need is what a great Mortgage Expert can help you with.

You should make a list of all monthly expenses, excluding rent or your current mortgage payment. Whatever is left after monthly expenses is the amount available for a mortgage payment and housing expenses such as taxes, insurance and home maintenance. Carefully consideration of your budget saves time by weeding out homes that you cannot afford and guards against overspending.

2.) Seeking Pre-approval

Getting pre-approved for a mortgage prevents a deal on a dream home from falling apart due to failure to obtain financing. You should compare loans from several lenders to see which one best suits your needs. A pre-approval letter will give you some power to negotiate on a home’s price because the seller will view a pre-approved offer more favorably than an offer that comes without lender pre-approval.

Keep in mind that pre-approval is different from pre-qualification. During pre-qualification, the lender estimates what you can afford. Preapproval is a more involved process in which the lender looks at your credit report and performs an extensive financial background check. At this point, you will get a good idea of the mortgage interest rate as well.

3.) Must Have vs Nice to haves 

Select 3 items you feel are Must Haves for you in your new home, now select 3 Nice to haves. When we go shopping and you see some of these features "live" your list may change. This is a great reason to go out with your Realtor and they will ask a lot about what your thoughts are as you walk through the properties with them.

4.) Choosing the Right Neighborhood

Crime statistics, insurance rates, property taxes and school quality are important considerations for you. Because the neighborhood makes up a large part of a home’s value, take your time to find exactly what suits your needs. You should also consider job commute, traffic during rush hour and proximity to amenities such as shopping, churches and libraries.

Driving through the neighborhood at various times during the day and night will provide a more complete picture of the location. Don’t forget to talk to potential neighbors, who can be a good source of information regarding the neighborhood and residents in the community. Take note that bad neighbors can bring down the value of a house.

5.) Finding the Right Home Inspector

Your home inpector is also a great teacher. If you speak to one and don't get that feeling, move on to the next. They will tell you many great things about your new home and how to maintain it as you walk through the process with them. You as the buyer get to choose the home inspector. Your Realtor will have some great ones they have used in the past that they can reccomend, or you can choose one that your find on your own.

Main areas covered by the inspection should include quality of construction, integrity of the foundation and condition of plumbing, electrical, heating and cooling systems. If the inspection uncovers serious issues, such as cracks in the foundation, you may decide to back out of the contract or ask the seller to repair the problem.