FIRST TIME HOME BUYERS READ THIS
Here are some thoughts and tips First Time Home Buyers should think about, be able to have answers to and then follow the advice. If you do this, I bet some of the “scary” goes away, then the fun of finding your first home can begin.
Check your credit.
Before you apply for a home loan, regardless of your credit, it is a smart idea to obtain a copy of your credit report and review the information. If there are errors or things that need to be addressed, it is easier to address them before you go out and find that perfect home. If there are items on your credit report that are not favorable, this could prevent you from getting financing.
Lenders look at your credit to determine how likely you will be to pay back the loan. Good quality Loan Officers can discuss your credit report with you and give you guidance with how to improve it, if need be.
Get Approved before you buy.
An Approval means that a lender has reviewed your credit history, verified your assets and employment and has approved your loan before you have found a home to purchase.
Actually, what they will give you is generally the highest amount for a loan that you qualify for.
There is a difference between a Pre-Approval and Pre-Qualified. You want to be Pre-Approved.
While getting Pre-Qualified sounds good, it is not as in depth process. It is a simple process usually where the lender plugs in some month income and monthly debt into a calculator that spits out an approximate price range that you can afford. No verification of information is done.
Get a Pre-Approval letter and you will save yourself anxiety about your loan.
Find a Buyer’s Agent
First Time Home Buyers need a dedicated Buyer’s Agent to help them find a home, negotiate on their behalf and guide them through the purchase process and beyond.
Please remember the listing agent is representing the seller’s best interest, not the buyer’s. Don’t call the listing agent when you see a home, call your Buyer’s Agent.
Learn about the Neighborhood
Drive around the neighborhood where you would like to live at all times of the day, then walk it. Nothing wrong with talking to some of the neighbors, they can be a great source of information.
Your buyer’s agent should provide you with recently sold homes so you will have some idea of what other homes sold for. How do these sold prices compare to the list price of the home you want to buy?
Check out the schools, if that is something of importance to you.
How long do you plan on living in the home?
Is there job transfer out of the area in the air? Perhaps now is not the time to buy because the home may not appreciate enough in a short period of time for you to realize a gain.
How long will the home meet your needs?
Will the features you require now, satisfy your lifestyle in 5 years? For example, a two bedroom home may be perfect for a young couple with no children. Will it have room for children in the future?
Have reasonable expectations.
There is a lot of money at stake. No house is perfect.
Emotions can take over both for First Time Home Buyers as well for the sellers.
Beware of the urge to pull out of an escrow …simply because you get scared. If you have done the steps above you should not be feeling that scared.
A Home Inspection is always advised, remember no home is perfect. It is the job of the Home Inspector to identify repair items or safety items. They will find things wrong with the home, don’t panic. Chances are they are not huge issues, if they are, then discuss the report with your Buyer’s Agent for advice on how to proceed.
First Time Home Buyers, if you follow this advice, you will find out if Home Ownership is in your future and you will be well prepared to make an offer on your first home that will be accepted and you will proceed through the purchase transaction prepared and confident.
Happy House Hunting First Time Home Buyers.
Call me if you are looking for a home in Ventura County.
I would love to find that perfect home with you and guide you through the process.