They're all 1st Time Home Buyers These Days...

By
Real Estate Broker/Owner with DFW Living TREC# 0553912

If your 2nd time homebuyer bought their first home within the last 6 years, they are probably used to newer homes with bright shiny fixtures, large open kitchens that overlook the gathering areas and ginormous master suites with 3.5 secondary bedrooms and a loft gameroom upstairs in which to hide their 3.1 children. 

Your 2nd time homebuyer under the age of about 40 is used to having it all and then some and they are used to having it fairly easily.  Don't forget that the 1st time homebuyer of 2005 was able to qualify for a mortgage almost faster than the time it takes to order movies online - give or take a few minutes.  Fast forward to 2010 there's more than a strong likelihood that they will need to prove everything stated on the application at least ONE time if not THREE.  (Why isn't it ever two?)

The experienced buyers are upset..this isn't how it all went down in 2006?  Often they ask,

 "Why are they doing this to me?"

I  simply explain that the old, easy way caused a big mess with too many people who really couldn't afford to buy homes being in the market to buy. The good news is that buyers having to prove so much about themselves these days has taken quite a few "wanna be" buyers off the market creating great opportunity for the truly qualified buyer.  They can be picky about what they want, are offered lower fixed interest rates, have time and access to more information than ever before and should be thrilled about even more affordable pricing.  We just have to jump through a few worthy hoops that in the end serve to protect them more so than last time.

Looking at the bright side works and most buyers just want to know what's going on. 

All home buyers need to be prepared in advance to prove it all these days and then some.  I worked with a couple that were asked to prove that Mr. Buyers parents were married.  Think that's crazy?  I thought so too until the reasons were explained--it's a long story but it made sense.  It pretty much boils down to the lender reserving the right to ask just about anything they want during any stage of the loan process.  Does the borrower have to cooperate?  Only if they want a loan. 

Do buyers a favor and treat them all as if this is their first time and make sure their lender does the same. Accompanying the buyer to the meeting with the lender is the best way to know how they are being dealt with.  If your buyer tells you that you don't need to explain things because they've done this before, let them know that unless they bought last year, it's all different now and that you are here to guide them through 2010.  Ask the lender to provide them with a list of all the items that could be asked for and follow up with the buyer to make sure they are ready to provide a DNA sample in an instant.  Remind them that all documentation needs to be within the last 30 days so if they're closing in June, April paystubs might not be current enough. 

Remember, delayed closings are often preventable and they impact every aspect of real estate from the underwriters being backed up to the title companies being rushed to the moving trucks running idle to the utility companies not being able to flip a switch fast enough so that the locksmith can read the house numbers after dark.  The domino effect continues because our delayed closing effects the buyer or seller who is scheduled a few hours later to be sellers or buyers...and so on.  

*****It's Not Just Where You Live, It's How You Live*****

Amanda Hall is the Broker for Hall Team Homes.  Hall Team Homes proudly serves the real estate needs of Fort Worth and surrounding areas including Arlington, Grapevine, Hurst, Euless, Bedford, North Richland Hills, Watauga, Keller and Colleyville.  If you are looking to buy, sell, rent or walk away from real estate, please contact us. We consider our role in your real estate experience to be that of a trusted advisor and believe that your best decisions are informed ones.

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Topic:
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Groups:
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Nothing but the Positive
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Tags:
mortgages
bedford real estate
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first time homebuyer
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Rainmaker
534,689
Liz Moras Migic
Chilliwack, BC
Chilliwack, British Columbia - Realtor

Hey girl, haven't seen you in a while - hope a all is well?  Good post and wise perspective :-)

May 21, 2010 05:46 AM #1
Rainmaker
153,346
Amanda Evans
DFW Living - Fort Worth, TX
Real Estate Broker - Fort Worth Texas

Hi Liz!  Things are great - the first time homebuyer tax credit frenzy really brought to light why we need to make sure that the consumer has enough information as possible to make decisions.  I found myself dealing with 1st time and experienced buyers that were frustrated with processes that are "hurry up and wait" situations that just happen to be going on at a fast pace.  (Totally NUTS!) There were times when I wished I had a book to hand to the buyers and sellers to read so that they could be up to speed on how things work these days and make decisions accordingly.  I do think my buyers and sellers were taken care of very well, but I can always do better as far as getting them the info they need and want.

So, I'm back! 

I missed you and it's good to see you!

May 21, 2010 05:57 AM #2
Ambassador
522,042
Virginia Hepp - Mesquite NV REALTOR
Desert Gold Realty - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS

Amanda, my last few closings were a nightmare with the loan delays and GFE compliance.  But you are so right - and we all need to be prepared to do what is needed to get 'em closed.

May 21, 2010 06:21 AM #3
Rainmaker
153,346
Amanda Evans
DFW Living - Fort Worth, TX
Real Estate Broker - Fort Worth Texas

Virginia, if it isn't your deal causing delays, it's the deal before you that delays it all.  I've seen one delayed closing impact 6 others and that's just what I knew about.  For every seller, there is often a seller becoming the buyer for another seller and the cycle of delay continues. 

Instead of a welcome sign in the lobby of title companies, we need flight status boards like the airports use.

DELAY

DELAY

ONTIME

CANCELLED

May 21, 2010 06:40 AM #4
Rainmaker
2,394,954
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

You are spot on with this post Amanda, every agent, whether representing the buyer or seller must take ownership of the transaction to make sure it gets to the closing table and beyond!

May 21, 2010 03:18 PM #5
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Rainmaker
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Amanda Evans

Real Estate Broker - Fort Worth Texas
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