Buying Your First Place:  Where Do You Start?

With the deadline quickly approaching for first time buyers to take advantage of the $8,000 federal tax credit, a lot of people are wondering what to do first. 

Surveys of recent buyers show that most of them begin by turning on their computer to see what’s out there.  But not so fast!

Your Mac or PC is going to play a crucial part in your search for a house or condo, but all of your messing around online is not very productive until you answer one huge question:

And how much can I afford to spend?  Oh, and this assumes that you are credit worthy.

While there are a lot of people who will play a crucial part in your search, the two most important are your Realtor® and the loan officer who shepherds your loan through the lenders wads of red tape.  And the Internet may not be the best place to find either of these.

I am, of course, biased.  I think you should start off finding a good agent, and we'll talk about how to find a great one in the next installment. 

A good agent will begin the relationship by helping you get pre-approved for a mortgage.   I give my new clients three names of loan officers I know are terrific.  It is not easy for a lender to make it onto my list, and it's very easy to be removed from it.  I know that whichever of these people my buyer chooses will do a great job. 

And in a very short time, you will know how much the bank will lend you, how much you will feel comfortable borrowing (usually less than the bank's number) and any steps you might be able to take to goose up your credit score.

When you start to look at houses or condos before you have a price range established, you can set yourself up for disappointment and delays.  The time to find out that your maximum price is $300,000 is not when you are about to make an offer on a $500,000 house.

The very foundation of your search is loan preapproval.  Then you'll be able to begin to discover the options that are available to you.

Next:  Part 2:  Finding the Right Realtor®

For more information about buying or selling a home, contact Patricia Kennedy.  Call me (202 549-5167) or email me (housepat@mac.com) and I'll start you off with the electronic version of my book, The Irreverent Guide To Real Estate.

 

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13 Comments on Buying Your First Place: Where Do You Start? Part 1 Of A Series

AUG
14
2009
1,099,042 Points 51 Featured Posts Outside Blog Called Shot Master

Do I have credit, what are debt ratios, how stable is my job, are mom and dad helping me get a leg up too in addition to all the programs, rebates, stimulus features to tap into, etc. Good post that needs repeating to the new crop of folks that need homes, land, farms, any kind of real estate.
8:49am • #1
1,309,202 Points 65 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Pat  We are riting on the same subject - I plan to follow yours which is very authorative  Karen
1:25pm • #2
1,911,854 Points 385 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Andrew, I think a lot of the series are going to have sort of universal qualitities. 

And Karen, I'll be reading yours, too!
2:19pm • #3
1,150,579 Points 53 Featured Posts Outside Blog

Pat,

One thing they need to remember is that, even though they are buying the place, they need to have a few dollars left over for some repairs -- unless it is brand new. Then they often need to have some dollars saved for the yard and landscaping. It drives me nuts when I see people buy and, when they are done, they have no dollars for upkeep at all.
2:24pm • #4
655,674 Points 10 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Pat, great first installment for your series.  I am enjoying seeing what everyone is choosing to write about (while I still am figuring out my topic).
2:28pm • #5
1,911,854 Points 385 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Steven, I'll get to it!  About Chapter 3 or 4

And Ann, it'll be fun to see all of the different topics!
2:36pm • #6
1,518,332 Points 112 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Pat:  First time home buyers will really appreciate this series.  There is so much to think about when buying your first home, but by the time you are done I am sure your readers will be lined up to work with you because you know how to make the process easy and enjoyable.
5:58pm • #7
565,608 Points 29 Featured Posts Outside Blog Attended Rain Camp

Hi Pat, Good post and this sounds like a great series for First Time Homebuyers.  This is invaluable info for so many.
7:45pm • #8
630,605 Points 7 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Pat..This is a wonderful series one that i was planning myself

HELPFULHANNAH
9:57pm • #9
569,437 Points 1 Featured Post Localism Sponsor Outside Blog Attended Rain Camp

Good advice for buyers to get started. Now they found you will they need to go to step two.
10:09pm • #10
1,156,628 Points 29 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Pat this is a topic that is going to be very popular.  Great start, I look forward to part 2
11:18pm • #11
AUG
15
2009
451,081 Points 64 Featured Posts Localism Sponsor Outside Blog Called Shot Master

PAT

Great Starters Guide- a step by step manual for a successful experience.
4:58am • #12
202,823 Points

This is great information. Are you using other media to get it out to the public. Denny Andrews has a great E-book "Master Your Internet Presence E-Book" which can be found on his blog

http://dennyandrewsconsulting.wordpress.com/
7:31am • #13

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Patricia Kennedy

Washington, DC

More about me…

Evers & Company Realtors

Address: 4400 Jenifer Street NW, Washington, DC , 20015

Office Phone: (202) 364-1700

Cell Phone: (202) 549-5167

Email Me

Pat Kennedy -- author of The Irreverent Guide to Real Estate -- gives you a look at life on the streets as a real estate broker in our nation's capital. And her blog is peppered with great advice combined with humor!


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