First Time Home Buyers... What needs to be accomplished so I can make my dream a reality?

By
Real Estate Sales Representative with Coldwell Banker

Over the last few years and in certain regions of the country, we have been able to see a mortgage crisis occur, homes close due to no mortgage payments and sellers walking away and abandoning their homes in order to get out of the financial pinch so many were sold into.

Here is my take:

A lot of the people who moved forward and made purchases were either victims or setting themselves up to fail and here is why:

One:  We are starting to see and hear rumors that a lot of people who were sold homes in the last few years made good moves for the time.  In various publications, such as the Wall Street Journal, I can recall reading how a group of buyers who acquired real estate through one firm in northern San Mateo County were unaware of what they were buying because the people selling it to them took advantage of their good nature and used the sale to profit.  The end result was the owners of the property lost all the money they had including their homes.


Two:  During the prequalification period and truthfully, before one makes a real estate purchase, you should sit down with a mortgage advisor to find out what you should be looking for at a level that you can afford so you are not in a dull life scenario.  Some people have over extended themselves to make payments which were low at first but adjusted to a higher rate after a certain time period.  Knowing that they were going to have to make the payments, a lot of buyers put themselves in a pinch.  They too lost their homes due to a poor decision.

So, now the question is, how does this relate to first time home buyers?  Here you go:  The days of zero down and an 80/20 loan are no longer.  To find one and be approved you would have to be very well positioned.  Do not count on anything coming to fruition be it lottery, stock options or funds you are invested in for the long or short term.  In sales, a basic rule which many do not follow is DO NOT GUARENTEE FUTURES.  It is a big rule and needs to be observed.  This is why; I cannot tell you how much your home will appreciate.  What I can do with a buyer is give them historical facts and figures that they can use in making their decision. 

Part two to the last paragraph is what should I have to make myself look good?  I'll list it out:
1. Have a good job that pays well.

2. be able to build a credit score in the 700 area.

3. Save your money so you can have a down payment.

4. Consider the future.  If you are having kids, will this one place be a better long term investment with two bedrooms one bath or will the house that needs a little work with a three bedrooms two and a half baths be better?  If you are planning on having a child or a lot of people over, make sure you invest in the right home. 

5. Get rid of debt!

Making sure you have a game plan is key to the purchase along with the items mentioned above. 

 

Jason

Comments (5)

Ted Mackel
Keller Williams Realty Simi Valley - Simi Valley, CA
Simi Valley Real Estate Agent
Welcome to Active Rain.  Make sure to check out other blogs so you can see what works and what does not.
Apr 28, 2008 09:26 AM
Dorene Shirley
The Mortgage & Property Connection - Campbell, CA
Silicon Valley Real Estate

Jason - Hey local guy! Welcome to the Rain, make sure that you browse the site and become familiar with everything this site has to offer.  The more you browse the more you will learn.  I have found this site to be really helpful to me.  If you have any questions, please don't hesitate to email me, I will do whatever I can to help.

http://www.doreneshirley.com/

Apr 28, 2008 10:54 AM
Keith Elliott Jr
KEIRE Realty Group - Manassas, VA
Principal Broker/Owner

Hello Jason,

Welcome to Active Rain and congrats on your first post! The opportunities to learn and network are incredible here. Best of luck to ya!

-Keith

Apr 28, 2008 11:39 AM
Kirk Westervelt
Van West Realty - Greenville, SC Realtor -Short Sale Expert! - Greenville, SC
Kirk Westervelt, Broker In Charge, Van West Realty - CDPE - Short Sale Agent - Home for Sale - Greenville, Simpsonvil...

Hi Jason,

Very nice blog! Sound advice!

Your market is fascinating to me. The average home price is apparently quite high. I assume you've got the Silicon Valley workers and families buying homes in your area? I lived in San Francisco for a good number of years, and I'm always interested in the Greater Bay Area.

Anyway, welcome to Active Rain! 

Apr 28, 2008 03:37 PM
Benjamin Clark
Homebuyer Representation, Inc. - Salt Lake City, UT
Buyer's Agent - Certified Negotiation Expert

Welcome to Active Rain! For some tips on how to get started here, check out my blog entry at ActiveRain Fast-Start Tips for Quick and Easy Points

Happy blogging and good luck!

Apr 28, 2008 05:07 PM