10 Tips Every First Time Homebuyer Needs to Know

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Real Estate Technology with Imagine WOW! Digital Marketing Agency

10 Tips Every First Time Homebuyer Needs to Know

Buying a home can be confusing, especially for first-time homebuyers. While it will never be a quick and easy process, there are answers to several questions that if understood up-front can ease the worry and tension.

These ten tips are designed to demystify the process and help you better understand what you can expect from contract to closing.

Tips Every Homebuyer Needs to Know

  1. Determine Your Needs

The process of purchasing a home can be especially daunting if you don’t take the time to determine your needs. A real estate professional will be able to best assist you if you are willing to answer a few important questions:

  • What is your current lifestyle and how will that play into the neighborhood or community you choose? e.g. sports enthusiast that requires hiking trails within the neighborhood
  • Size of home including bedrooms, bathrooms, and specialty rooms such as media or pool room.
  • Style of home: Ranch vs. Two-Story and Tudor vs. Cape Cod

  2. Consider the Cost of Homeownership

There are various financial commitments to consider, most importantly how a new home will fit into your budget. Y

ou need to ensure that you can afford the monthly mortgage payment, as well as any expenses including utilities and/or possible homeowner’s association fees.

  3. Interview a Real Estate Professional

The interview process is one of the important first steps in buying a home. An experienced sales associate will be eager to share their expertise and skills so you can make an educated decision.

Ask for references and listen to what other people have to say about their experiences with a particular agent. Ultimately, you want to find someone that knows your area, has a good grasp on current market conditions and that you feel comfortable with.

  4. Decide if You Will Build or Buy Resale

Are you going to buy an existing home or build something new? There are pros and cons to both, with each a reflection of your lifestyle and needs.

This calls for thorough research to identify which of the above is beneficial to you as an aspiring homeowner.

  5. Location, Location, Location

Location is one of the key factors to consider in any home purchase. Make sure that you buy a home in areas where the value of property is set to increase as opposed to those with low prices and high chances of stagnation.

  6. Understand Mortgage Options

Speak with a mortgage professional about your options and make sure to share details about your current financial situation, including your monthly budget for a new home.

They will be able to offer guidance on which loan program will work best for you.

  7. The Benefits of a Home Inspection

A home inspector will inspect the home prior to purchase to examine for structural and safety issues. An inspection is not required, but a wise choice as it will determine if the home is structurally sound and wiring and pluming are up to code.

They will also check for safety hazards, including loose railings, rotted or damaged porch or entryway steps and broken windows.

  8. Get Everything in Writing

The best way to protect yourself is to ensure that every part of your transaction is captured in writing. An example of this would be repairs the seller agrees to make prior to closing. Your real estate professional is there to make certain those repairs are added to an addendum which becomes a part of the purchase agreement.

You do not want to have a casual conversation with the seller that could be left to interpretation when it comes to the largest purchase you will probably ever make.

  9. Finalize the Purchase

To avoid problems at the closing table, make sure you have a clear understanding of what to expect. Go through your loan details one last time so there are no surprises when it comes to interest rate, loan amount or mortgage term.

There will be a substantial amount of paperwork to sign so give yourself plenty of time to adequately review the details.

  10. Home Improvements

Your home is a valuable asset. Once you close, continue to put aside money on a monthly basis for any necessary repairs or maintenance. It’s also important to note that certain upgrades may contribute to lower insurance premiums.

This makes it important for you to stay in touch with your real estate professional. They can provide guidance on value boosting renovations.

 

10 Tips Every First Time Homebuyer Needs to Know was originally written by Rebekah Radice and posted on the Clean Slate Blog.

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Rainmaker
855,465
Kevin Mackessy
Blue Olive Properties, LLC - Highlands Ranch, CO
Dedicated. Qualified. Local.

Great succinct list of tips for first time homebuyers.  It is our responsibility to help them with all of these items.  

Aug 21, 2013 02:25 AM #1
Rainmaker
692,642
Kathy Stoltman
Rockwood Realty - Ventura, CA
Ventura County Real Estate Consultant 805-746-1793

Rebekah, this is a very important list for home buyers to really understand in today's very fast paced market.

Aug 21, 2013 03:25 AM #2
Ambassador
1,184,008
Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Rebekah. These are all nice things for any homebuyer to know and to be aware of these days. Things really get rolling when they decide to hire a real estate professional.

Aug 21, 2013 08:47 AM #3
Rainmaker
1,448,354
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

I think you may add...consider the cost of not buying a home. As an example...assume your rent will increase 5% per year if you are renting...project out 5 years for you comparison. Great post...suggested.

Aug 22, 2013 12:08 AM #4
Rainer
14,116
Kathi Cline
Palm Desert, CA
Coachella Valley's Real Estate Professional

Great info, Rebekah!

Sep 02, 2013 06:58 AM #5
Rainmaker
193,789
Terri Woods
Benton, Linn and Douglas Counties - Days Creek, OR
Selling Homes and Land in Oregon

Hi Rebekah -

Thank you for the blog. You always seem to have great content.  Your blog is one that I use as "homework" for my business.  I think my youngest daughter is attending your alma mater. Thanks again for your work. It helps us all.

Oct 06, 2013 10:51 AM #6
Rainmaker
2,500,468
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.

Always good stuff and all buyers should take advantage of what a real estate agentcan offer. I interview buyers just like seller to determine if I can do the job or want to do it.

Oct 27, 2013 01:11 PM #7
Rainmaker
1,768,556
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate

Once again I'm saying "I need this on my site." Thanks for the motivation and inspiration!

May 11, 2015 12:42 PM #8
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Rainmaker
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Rebekah Radice

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