What Every First Time Home Buyer Needs to Know Before Purchasing a Home

By
Real Estate Agent with UTR Texas-Realtors Tx. #0599060

Purschasing a home is both exciting and intimidating.  There are so many considerations and it is a big learning curve for new buyers.   New home buyers need to be informed and confident while going through the process of purchasing a home.  Below is a checklist for the first time home buyers to use as a guide while planning to purchase their first home.

Some considerations are necessary to take into account while beginning the process of looking for homes. It is important to be aware of the following:

Arrange for financing-  Getting pre-qualified or pre-approved for a home loan is essential before starting your home search.  Speak to a mortgage lender to find out if you are credit worthy and to find out how much home you are able to purchase. Knowing how much for which you qualify  will help keep you from looking at properties out of your price range.

Location- Set priorities and know what you want to avoid buyer's remorse.  Sometimes you can get more space for the budget you have by buying in a less popular neighborhood.  On the other hand if the neighborhood is very important to you, you may need to consider a smaller home.  Check to see what amenities are there in the neighborbood and how close you are to your work and other places that are important to you.

School District- Whether or not you have children, the school district your new home is in effects market value and resale possibilties.  Good school districts attract new buyers and often mean the price of the home will be better than in less favorable school districts.

Neighborhood plans- Make sure you know what the development plans are for the neighborhood you are looking to buy in.  Will there be now parks coming soon?  What businesses are coming into the area?  Is there a Home Owners Association?  Knowing answers to questions such as these will help you make an informed decison.  Factors such as these can effect the future sell of your home.

Down Payment-  What kind of down payment do you have for your new home?  Depending on your loan product your down payment may vary.  The more down payment you put down the more equity you have in your home investment.  The larger the downpayment, the more favorable your offer will look to the seller of the property. The amount of your downpayment will also effect your monthly payment.

Closing Costs- In addition to the down payment there are closing costs that will need to be paid at closing. Generally the closing cost can be 4%-6% of the loan amount. Your real estate agent can talk to you about how some of these cost can be negotiated with the seller.

Inspections- If you think you have found your dream home, have it inspected.  Once done, review the inspection report.  Review and discuss with your real estate agent any points that come up in the inspection.  With your real estate agent's assistance, negotiate any repairs that were recommend in the report.

Set a budget- There will be expenses beyond the downpayment and closing costs once you have closed on your home.  There will be monthly utility costs as well as home maintenance items. The size of your home will also effect the cost of maintaining the home.  

 

 

 

 

Posted by

Michael Scruggs

Realtor

UTR-Texas, Realtors

713.823.2284

Comments (20)

Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

Great first post! Welcome to Active Rain! You have given a nice road map for buyers. 

Nov 16, 2015 06:25 AM
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Excellent post Michael. Your clients are fortunate to have you to guide them through the process.

Nov 16, 2015 06:30 AM
Michael Scruggs
UTR Texas-Realtors - Houston, TX
ABR, CNE, TAHS

Thank you Karen!

Nov 16, 2015 06:31 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Michael, great advice for those buyers contemplating a purchase, but not sure where to start.   Great first blog, and welcome to ActiveRain!

Nov 16, 2015 07:57 AM
Michael Scruggs

I do appreciate your comments.  I am glad to be a member of AR!

Nov 23, 2015 07:28 AM
Gary Coles (International Referrals)
Venture Realty International - Las Vegas, NV
Latin America Real Estate

 

Good evening Michael Scruggs . Congratulations on your first post here in the Rain.  Great advice for buyers.

Nov 16, 2015 12:26 PM
Shirley Coomer
Keller Williams Realty Sonoran Living - Phoenix, AZ
Realtor, Keller Williams Realty, Phoenix Az

Great first point with many nuggets of knowledge for first time home buyers.  Welcome to ActiveRain!

Nov 16, 2015 09:19 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Michael... a great first post and welcome to the Rain. Looking forward to seeing more of your writing.

Nov 16, 2015 10:07 PM
Mery Fernandez Empire Network Realty Luxury Brokerage
Empire Network Realty INC. - Orlando, FL
The Rise of An Empire, Let's Build Yours!

Hi Michael! Welcome to the world of Activerain, may your blogging  create a whole new chapter in your Real Estate Career.

Nov 16, 2015 10:27 PM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

So many factors to consider when purchasing a home and you laid them all out very well here Michael. Welcome to Active Rain!

Nov 16, 2015 11:09 PM
Michael Scruggs

Nicole I appreciate your words or encouragement!

Nov 23, 2015 07:31 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Welcome to Active Rain!  As REALTORS who have been here (on and off) for more than 9 years, it's well worth it!

Nov 16, 2015 11:46 PM
Melissa Jackson
Century 21 Alliance Properties - Azle, TX
Helping You Make The Right Move

Welcome to Active Rain! Great post Michael Scruggs, pointing out decisions that need to be made by the buyer before they begin their search.  

Nov 17, 2015 04:03 AM
RealtyTech Inc.
Real Estate Technology and Marketing - Thousand Oaks, CA
Premium Websites/IDX/Marketing for Realtors

Nice of you to point out the importance of the size of down payment and its effects! Welcome to the Rain Community!

Nov 17, 2015 05:50 AM
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Hey, Michael!  You're off to a great start here on ActiveRain.  You wrote a thorough first post, and I'm looking forward to reading a bunch more.

Nov 17, 2015 09:42 AM
Michael Scruggs

Patricia, Thank you for your comments and encourgagement!

Nov 23, 2015 07:27 AM
Nancy Robinson Ranked #6 in MI
Century 21 Town and Country - Royal Oak, MI
#11 Century21 Realtor in the US, #16 in the World

 I believe that some are called to the profession like a vocation.  Sounds like you got the call!  Thank You for the  very informative post and welcome to the site.  I am sure you will find  many like minded individuals to share and connect with here.  NICE first post.

Nov 21, 2015 11:57 PM
Captain Wayne - Rowlett Real Estate School
Rowlett Real Estate School - Panama City, FL
Rowlett Real Estate School / Owner and Instructor

Some very good questions for first time home buyers to ask and make sure they know the answers to. 

Nov 23, 2015 06:36 AM
Captain Wayne - Rowlett Real Estate School
Rowlett Real Estate School - Panama City, FL
Rowlett Real Estate School / Owner and Instructor

Welcome to ActiveRain,  it's great to have you aboard.  I look forward to reading more of your posts.

Nov 23, 2015 06:36 AM
Michael Scruggs
UTR Texas-Realtors - Houston, TX
ABR, CNE, TAHS

Thank you, Captain.  I appreciate your comments.

Nov 23, 2015 06:47 AM
Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

Hello Michael-the first time is the scariest for most. I remember my first home purchase I was so excited I didn't here anything anyone was saying at the closing-I just wanted the keys!

Nov 28, 2015 04:48 AM
Michael Scruggs

Thank you Marco for your words of support! I appreciate it very much!

Dec 16, 2015 11:58 PM
Michael Scruggs
UTR Texas-Realtors - Houston, TX
ABR, CNE, TAHS

Hi Marco- I agree. I remember thinking " What have I gotten myself into?" I was nervous and anxious. Thank you for commented on my post.

Nov 28, 2015 05:24 AM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Michael,

Welcome to the Active Rain community! 

Congratulations on your first post! You are doing great! Looking forward to reading more of yours:) 

Dec 16, 2015 03:50 PM
Michael Scruggs

Thank you Inna for your support!

Dec 16, 2015 11:56 PM