First Time Home Buyers ~ You Can Do It! (Part 1 of 12)

I love many things about being a real estate agent, and one of my favorites is handing first time home buyers the keys to their first home.  I recall with great pleasure giving a young couple the keys to their first home in Oakley on Good Friday, where they were able to celebrate their first wedding anniversary on Easter. While it may appear nearly impossible in an expensive real estate market like we have, it can be done when first time buyers understand the process and have a healthy balance of patience and persistence.  (Even with the modest price declines of the past year plus, the median price of houses sold in East Contra Costa County was $500,000 in April 2007 vs $525,000 in April 2006 and less than half that amount nationally)

Buying your first home can seem overwhelming any time.  A couple of years ago first time buyers felt like the deck was stacked against them with prices appreciating quickly, multiple offers were bidding prices even higher, and they were competing against buyers or investors/speculators who may have a large amount of cash to put down on the home. 

In our current market, first time buyers are finding it much more challenging to secure 100% financing, with creditors tightening up lending practices following the implosion of many of the sub-prime lenders.  In addition, buyers naturally question whether it is a good time to buy with home values slowly dropping. 

Knowledge is power, and thus I encourage clients to learn as much about the process as possible from as many people as possible.  Visit with family and friends about their experiences, good and bad, in the purchase of their first and subsequent homes.  Ask what they'd do differently, if anything and what they found especially helpful.  Thus you'll get advice you may be able to put to use, or at least use as a starting point when speaking with your real estate agent and loan consultant. 

Over the next 11 or so blogs, I will discuss the major steps in purchasing your first home, including: 

1. To buy or not to buy. 
2. Visiting with a real estate agent to get an overview of the purchase process as well as the current real estate market. 
3. Meeting with a loan consultant to determine what you qualify to borrow. 
4. Learning to ‘live the budget' of owning a home, before you own one. 
5. Determining what you ‘need' vs what you ‘want' in a home. 
6. Searching for your home. 
7. Preparing a desirable offer on your first home. 
8. Inspections & disclosures. 
9. Requesting repairs. 
10. Signing, final details and getting your keys.  
11. Tips on the 'art of moving'.