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What Does It Take To Become A First Time Home Buyer?

By
Mortgage and Lending with Academy Mortgage Corporation NMLS #229617

The prospect of home ownership can be both exciting and nerve-racking. If you don't have any experience with the home buying process, it can even feel a little overwhelming.

The most important thing to remember is to not rush into anything. At times, the process can be so daunting that buyers either end up buying the first available home, or they go back to renting.

If you make any hasty decisions, you may end up regretting it. Take some time to understand the buying process, as this will help you make a decision you can be happy with.

Pricing Considerations

Even if you think you know what kind of house you want to buy, first, you should find out how much a lender is willing to give you for the purchase.

Even if you think you should be able to qualify for a $350,000 home, lenders might have other ideas. This largely depends on your debt load, your income, and your work history.

At times, lenders may be willing to give you a loan for a home that costs more than you're interested in paying for. It's important to look at the total cost of a home, and not just what the monthly payments will be. You'll also want to consider how much of a down payment you're willing or able to make.

At this point, you should also get a pre-approval. This will make it easier for you to secure financing when you find your perfect home.

Enlisting The Help Of A Real Estate Agent

A real estate agent will help you find a home that meets your needs, and is within your ideal price range. They can help you deal with any problems that arise, and are also responsible for negotiation during the purchase process.

Since you will basically be partnering up with your agent, you should take your time in making your selection. Don't be afraid to ask for references, since most agents are used to this.

Once you've chosen your agent, you can begin looking at homes. Some buyers find that looking at too many homes in one sitting can clutter up their mind and make it hard to remember all of the details. If you think you might feel overwhelmed along the way, limit the number of homes you look at in one setting.

Selecting A Home

Once you are ready, you can begin narrowing your search. Your agent will help you do the research on the homes you are interested in. You will be the one to make the final decision, but the process is relatively simple thanks to the abundance of information at your fingertips.

Once you've chosen your future residence, it's time to make an offer. You should already know what the fair market value for the home is based on the agent's analysis. The key is to decide ahead of time how much money you are willing to spend on the property.

Please fee free to contact me with any questions, www.academymortgageaz.com

Show All Comments Sort:
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Lots of good advice in this post.

Oct 02, 2015 12:33 PM
Steve Alonso

Thanks Joan. Education is a big part of our business model. 

Oct 05, 2015 02:25 AM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Steve Alonso First time home buyers need hand-holding and this post is just the beginning of the journey.

I am sure you'll be there with them all through.

And by-the-way, Welcome to ActiveRain.

Oct 02, 2015 12:56 PM
Steve Alonso

Praful, thank you for the welcoming! We are a purchase first company so first time home buyers are a large part of our business. 

Oct 05, 2015 02:24 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

You call Steve Alonso and he helps you shed your first time buying skin safely

Oct 02, 2015 11:47 PM
DEANNA C. SMITH CERTIFIED MOBILE NOTARY
Certified Mobile Notary Signing Agent - Smith Mountain Lake, VA
Highest Ranked Certified Mobile Notary in Virginia

Ahhhh, so true, so true.   I taught First Time Home Buyer classes for years and they come in scared.   It is a great feeling to see these meek and mild amatuers become confident pros at the whole home buying process.   After the classes and a home purchase, they often became my best referral sources

Oct 03, 2015 01:20 AM
Steve Alonso

Deanna, we have numerous LO's that teach home buyer education in conjunction with a Realtor. We also have "buy again after" classes which talks about how to get back on track after a BK or foreclosure. 

Oct 05, 2015 02:22 AM
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

Welcome to ActiveRain and congratulations on your FEATURE blog.

You have brought up several excellent tips for first time home buyers. I would like to add one thing and that is that buyers should not over extend their purchasing power. 

Oct 03, 2015 07:29 AM
Steve Alonso

Hey Les, I agree with you. Rushing things for a borrower who is unsure can create numerous headaches. Thanks for the input.

Oct 05, 2015 02:21 AM
Morgan Evans
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

Great advice for first time home buyers, take the time to research what they are looking for and not make hasty decision is a good one.

Oct 04, 2015 12:48 AM
Steve Alonso

Education is key. Finding the right loan or option for the borrower makes things easier for everyone involved. 

Oct 05, 2015 02:19 AM
Ron Aguilar
Gateway Mortgage Group - Saint George, UT
Mortgage & Real Estate Advisor since 1995

Steve, good post. As I prospect to renters I make sure we talk about being careful but also being progressive. Many possible buyers have not talked to a lender yet and hopefully not a Realtor. I strongly urge these people that making no move is better than making a mistake...

Oct 04, 2015 03:02 AM
Steve Alonso

Ron, one of our main goals in the AZ market is education. Often we have borrowers that are unaware of the numerous loan programs that can help them. 

Oct 05, 2015 02:18 AM