Tips For The First Time Home Buyer

Your first home is a big step, the process at its best is frustrating and gut wrenching.  Don't let anyone tell you otherwise.  With that in mind,  we will try to make it as smooth as possible and take care of problems before they arise.  The home buying and mortgage process can seem backwards and senseless but that is just the way it is.  Accept it and learn how to make the system work for you instead of trying to change the system and getting nowhere fast.  Real Estate professionals such as myself are working hard to get the changes made that will make the process easier, meantime...

First and foremost, check your credit. This will become important when you apply for a mortgage and, in general, you should know what your creditors are saying about you. You are now thinking " I have great credit" and you probably do, the problem is that creditors and credit reporting agencies make mistakes!  Do not let pride get in the way of checking your credit.  For a small fee you can get a copy of your credit report.  Use that privilege and make sure there are no mistakes or reporting errors well in advance of attempting a mortgage. Contact one or more of the credit reporting bureaus that operate in your area - the three largest national agencies are Experian (formerly TRW), Trans Union Corp and Equifax.

Once you have your report, read it thoroughly. If there are any discrepancies contact the creditor and have the problem corrected immediately. If there is a negative, but accurate, claim on your report - an excessively late payment on a utility bill, for example - write a letter to the credit bureau explaining your side. This looks better to a lender than if you have made no attempt to explain yourself. Clearing up credit issues can take some time, with numerous phone calls and letters, so start early.

Before you start looking for your dream home, start the loan process.  You want to get pre-approved, not just pre-qualified.  Pre-qualifying is meaningless, Pre-approval however means you have full approval on a loan by a given lender up to a certain amount.  You have the loan as long as you find a property within your pre-approved amount and it appraises for the price you are paying.  Now you know absolutely how much you can buy, the terms and the cost.  More importantly, your agent can present you to a seller as not just ready and willing but also able to make the purchase.  This is a VERY strong position to be in and will get your offer considered first.

With the financial wheels turning, things get easier.  Now we will sit down and create a strategy to find a home that meets your needs.  Be upfront with your needs and desires.  Remember, when you start looking for a house, everyone you know becomes a real estate expert.  You must trust your agent, we buy and sell many houses a month and while everyone wants to add their two cents, you should rely on the real experts, us.

After you have purchased your first home, you may think you will not be buying another home for a long long time but, in fact, statistics prove that you will sell this home and buy another sooner than you think!   Don't try to get a lifetime house, look at a 4 - 7 year window only.  Decide on what is a "must have", a "would like to have" and a "can live without for now".

Sit down and discuss these details with your sales agent. Talk about your lifestyle and what your plans are for the future. Will you be starting a family in this house? If so, you need to take this into consideration. Your sales associate will use this information to determine what types of homes, in what types of areas, to show you.

Remember, when it comes to how much home you can afford, you must be reasonable and willing to compromise. Spacious homes on large lots sound great, but in addition to larger monthly payments, they will also mean larger utility bills. You don't want to over extend yourself financially. Expect to give up some of your "would like to haves" in order to find a home that fits your "must haves" and your pocketbook.

You will be looking at many homes in different neighborhoods. After a while they may all seem to look alike. How do you find the one that is right for you? Careful exploration of the homes and the communities is the answer.

Find out as much about the houses you are considering as possible. The walk through probably didn't tell all of the story. Most states require sellers to prepare a written disclosure of material facts adversely effecting the home. Review this before signing a contract to buy, even if the home is an "as is" sale or advertised as a "fixer upper".

Explore each neighborhood you are considering to determine the drivability and walk-ability of stores, services and public transportation. Try to visit the areas at different times of the day to get a feel for the differences in noise and traffic levels. If you are considering a property based on the fact that it is surrounded by trees and very private, you should make an effort to see if there are any plans to build in the area. Try contacting the local Development Council or local government to get information on what type of development is permitted in the area.

Of course if you are planning to raise a family, you will also want to look into the local school systems in more depth as well. Your sales agent will be able to help you explore school systems and many other details of each community using specialized software and the Internet. Try http://www.greatschools.net for starters!

When you have decided to make an offer on a home, your real estate agent will help you draft a purchase offer. If you would like certain items included in the purchase price, make sure they are stated in your offer. Don't assume you are getting all of the appliances in the kitchen and that great swing on the front porch.

When your offer is accepted, and a contract to buy has been signed, have the home inspected by a professional. A professional home inspector can find problems that you, and even the seller may not have noticed. He or she can also tell you what problems should be fixed before you buy, or at least bring them to your attention so you know what to expect. You will also want to have the property surveyed by a professional so that your property lines are officially recorded and documented.

Becoming a homeowner can be exciting and a bit scary, like any new adventure. Preparing in advance, enlisting professional help, and arming yourself with the information you need to make good decisions are the best ways to ensure a successful outcome.

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