The Very First Time
Here's a great blog about buying your first home, written by a couple working in Colorado. I might add that, at least in the Santa Cruz & SC Mountains areas, it can be difficult to fulfill your entire wish list unless you have ample resources, so it's a good idea to consider which items on your list you might be willing to compromise.
Also, expect competition from other buyers! But that doesn't always mean the property will sell for over asking price. One of your safeguards against paying too much is built in if you're using a loan to finance the purchase. Your lender is going to question the purchase price by asking you to pay for a third party neutral appraisal.
Buying your first home? That is exciting news - it's a big milestone in your life, and I'm sure you're a bit concerned about getting it right. Don't be worried - millions of people buy homes every year, and you'll do fine. It's just not that difficult. But here's a few general tips that will help make it a rewarding adventure.
First, and probably most important, it will go more smoothly if you enlist the help of a couple of guides - the process is a bit complicated, and expert assistance will help you get through it with a minimum of hassle and confusion. You're going to want a real estate agent and a loan officer. Make this your first step and get the best available - do some research by asking your friends and colleagues for recommendations; look on-line for web pages - they'll tell you a lot about the people involved; interview several agents and lenders, and come prepared with your questions (you can easily find some lists of good questions on-line). Pick the people you feel most comfortable with, the ones who you communicate with most easily, the ones who "get" you. Make a commitment and stick with it - they're going to be tremendous help.
Second, think about what you want in your first home. Make a list of the most important items, but be realistic. Almost every home buyer has to make compromises and you will too. But this is important - it's your first home, so don't settle too easily. Take your time, get an understanding of the market, and pick a home you're going to love. Don't worry - you'll find it. It may take some digging, but your home is out there.
Third, understand that this is going to be a decision with a high emotional content. The right home is going to speak to you - you're going to have a gut reaction when you find it. Keep your cool - there's still some work to do. You will need to negotiate the purchase with the seller, and you'll want to have it professionally inspected to ensure against surprises down the road. It's a big investment, and you are going want it to be a wise one.
Fourth, ask questions. Anytime something comes up that you don't completely understand, seek clarification. And keep at it until you're completely comfortable. And listen to your guides - they're professionals and they know stuff you don't. Remember that they are working for you - they want this to happen for you.
Fifth, a lot of the process will require action from you, mostly in the form of documentation and decisions. Respond as quickly as possible - you don't want to hold up things anymore than necessary.
And finally, have fun. This is a big deal, literally a once-in-a-lifetime occurrence, and you want it to be something to celebrate. Don't let little bumps in the road upset you too much - you'll get by them and they'll be forgotten history. Keep your eyes on the goal, and enjoy the journey. It's going to be the start of something important.
Mary & Dick Greenberg
New Paradigm Partners LLC
2601 S. Lemay Ave. #41
Fort Collins, CO 80525
970-689-4663
www.maryanddick.com
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