So many first-time home buyers have been contacting me, asking about mortgages and what to do and not to do when starting the home buying process. Here are some answers to those first-time home buyer questions.
The first thing that every first-time home buyer needs to do is hire a buyer agent. Your buyer agent is going to play an important role in the entire process. If you find a good buyer agent, they will bring you in and sit you down and explain the buying process to you and answer all of your questions. So, be prepared and have a list of questions ready. Running out to a property and meeting a Realtor for the first time is not the way to hire a buyer agent.
It is important to know that if you hire a buyer agent, you do not have to pay the buyer agent. Traditionally, your buyer agent will be paid out of the fee for service that the seller agreed to pay when they listed the home.
Get pre-approved. If you don't want to get pre-approved then you are not serious. You need to know how much you can afford before you look at homes. Don't worry, homes will be there. If you do not know of a reputable lender, your buyer agent will have names of some great mortgage consultants for you to talk with.
Don't get caught up in interest rates. You can't lock in on any rate until you have a signed Agreement of Sale so it doesn't matter if the mortgage consultant tells you that rates that day are 4%; they mean nothing to you until you find your home. It is extremely important that you understand this.
Make sure to get a Good Faith Estimate (GFE) from your mortgage consultant which lists all of the fees you can expect to pay at settlement.
Have money for a deposit, down payment and closing costs. If you do not have money saved, it's not time to be looking for a home. And do have a job!
Have patience and make sure to trust the Realtor you hire. Your buyer agent does this every day and will guide you.
Trust your instincts. Everyone will have opinions and advice but you have to listen to yourself. If you view one house and that home is the price you want and has everything you want, then do not be afraid to put an offer in on it. Remember, you are looking for a home and you only need one. Many people will tell you not to buy the first home you see. But what generally happens is that when you listen to other people and go against your feelings and view many other homes only to figure out that the first home was the home for you, that home usually is not available and then you missed out on exactly what you set out to find in the first place.
Don't low ball every home. Your Realtor will know how much homes are selling for. Yes, it is a buyer's market and you can get a great deal but if you expect to put in ridiculous offers on every home no matter what, you lose the home and you will be wasting your time as well as your buyer agent's time.
Know what you want before you go look at homes. Have a list of what you need first, then list what you would want but could live without.
Know the style of home you want. Do you know the difference between a cape, a townhouse or a row home ? If not, you need to find out so ask your buyer agent what the differences are. This way they are not showing you homes that you do not like.
If you are interested in a condo, there are important things you need to know about them before you go out and look at them. You may find out that a condo is not for you.
Bring a notebook with you when you view homes to take notes and document concerns. Ask: how far is the home from your job, do you have to pay tolls, use more gas and how much are taxes? The price may be right but in the long run, it may wind up costing you much more just to get to work.
Always bring the person or persons who will be helping you make the decision on the home. You may think that you know what the other person wants but trust me, it's best to view every home with whomever else will be buying the home with you. The last thing you want to do is fall in love with a home only to bring back your husband/girlfriend/partner and find out that they do not like it like you do.
Finally, remember buying a home is very time consuming and stressful. Failing to plan is planning to fail. Knowing what to expect before you run out there to view homes will make your home buying process so much more enjoyable. I do hope that I have answered some of your questions and that you have a better sense of what to expect.
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