As a first time home buyer, you need to maintain a balance between money and lifestyle in a way that makes sense for you and your family.
Buying a home comes with great benefits, but also with added responsibilities, one of the reasons many would-be first home buyers are very apprehensive and fearful of the process. They need not be. Although the process is not complex, it includes a myriad of steps that have to be done in the right order to avoid problems.
Hiring a REALTOR who can recommend the right team of inspectors, attorneys, lenders, surveyors, insurance agents, painters, handymen, etc. will save them lots of time and headaches.
I recommend to all my first-time home buyer clients that they follow a plan - like this one, for example:
- Sit down (together with anyone involved in the decision-making process) and figure out your short, medium and long term objectives. What are your main reasons for buying? How long do you plan to stay there? How does buying a home fit in with the rest of your "life puzzle"?
- Apply for a loan (make sure the loan officer checks all your documents) and get a pre-approval letter from a lender so that you know how much house you can comfortably afford. Make sure you can afford the estimated payment (i.e. no big payment shock!)
- HIRE A REALTOR as your BUYER'S AGENT! It amazes me that someone who has never bought a home would feel OK about buying their biggest investment without getting professional help! In SC, hiring a REALTOR to represent you as a buyer is normally FREE OF CHARGE (the commission is paid for by the seller)
- Establish your home search parameters (and share them with your Realtor!). Include: Location (the narrower the area, the better), price point, number of bedrooms/bathrooms/square feet, type of home, required condition, other features (like schools, fenced yard, pool, style, etc.)
- Find the perfect home and (together with your Realtor) negotiate a favorable contract. Make sure the home, the neighborhood and the conditions contained in the contract fit your desires and objectives.
- Stay actively involved during the due diligence (contract-to-closing) period, ask any questions you can think of (there are no silly questions!)
- Make sure you provide any information/documents that your lender/insurance company/ attorney/Realtor asks for - without delay
- Plan your move in advance. Connect utilities in your name as of the closing date
- Ask the closing attorney how much you need to bring to the closing. Get a cashier's check or wire the money to the attorney. Review the closing statement (HUD-1) with your Realtor.
- Attend the closing. Make sure all the terms of the sale and the loan(s) are what ou expected.
- Change the address on your driver's licenses
- Don't forget to apply for the Primary Residence Exemption - which will lower your property tax substantially!
- Enjoy your home!
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