Tips for First-Time Home Buyers

Tips for First-Time Home Buyers

The more you know, the less scary it will be.
We have all dreamt of our dream home at some point in our lives. We have all wondered what it would be like to have a house with a certain number of rooms, a big backyard and possibly even a pool. We all want that house in a safe neighborhood; more than a house – we want a home.

Unfortunately, many people go looking for a property and don’t really find their dream home — They either compromise or just stop searching. New home buyers, who do find their dream home, often don’t know how to go about purchasing it. They don’t know how to fund the purchase, what to look for, what to ask the Realtor, or how to negotiate. That problem can be solved with these simple tips for new home buyers.

Consider down payment programs: If you’re planning ahead, open a matched savings account. Eligible participants can earn up to $4 for every $1 saved – As much as $7,500 towards an eventual (within 10 months – 3 years) home purchase in New York State or New Jersey. Visit the organizations matched savings page for details and income limits. If you’re looking specifically in the City of Albany, we encourage you to check out the Buyer’s Choice Program, which can provide you with up to $20,000 in down-payment assistance PLUS up to $20,000 in necessary repairs.
Get a mortgage pre-qualification letter: In order to begin your search, you will need to know how much you will be able to afford as a first-time home buyer. Most banks offer this mortgage pre-qualification at no cost to you – simply stop into the bank or call to make an appointment to meet with a mortgage originator. A few local banks in the area that Realtricity often recommends include Sunmark Federal Credit Union and SEFCU.
Know the average process and length of buying a home: Some buyers will look for years and not find that perfect property – those buyers are not motivated. You have to truly be motivated to find a home. Studies show buyers will look at 20 to 30 houses before they finally decide on a property. This can take anywhere from two days to two months. To make life easier, start your search from home by visiting Realtor’s websites and searching their listings by inserting your own criteria, looking through virtual tours and getting more information about the surrounding neighborhood. Print out a few of the properties you are interested in and call the listing agent for more information and to schedule a tour. To understand the process better, read our Step by Step Buyer’s Guide.
Consider signing on with a Buyer’s Agent: Unless you’re an agent yourself, it’s wise to sign on with a Buyer’s Agent who will represent your needs and desires while helping you locate the property that’s best for you. Locating a professional advocate, who is required by law to get you the best price and terms, can alleviate home shopping stress. Good real estate agents will listen to your wants and needs and arrange to show only those homes that fit your particular parameters. They are required to point out defects and will help you feel more confident in making your decision. If time permits, your agent may even wish to preview homes for you before showing you the property.
Know what to do when touring a property: When looking at a property for the first time, you should bring a camera and take several pictures and notes about your thoughts and observations. Don’t be afraid to think out loud – Do you like the location? Is it near your work place? Examine your lifestyle – Is the house childproof? If not, will it be easy to childproof? Is it in an urban or rural area? Is it convenient to locations where you can enjoy your favorite hobbies? Does it have the social culture you’re looking for or are used to? A good listing agent should have all this information available to you. When you leave the property, rate it on a scale of 1 to 10 with 10 being the highest and review your notes when you get home.
Find a good home inspector: Before making the purchase, you will want to know how the home was built and what problems it may bring with it. The only way to truly know what’s going on inside (and over and under) a home’s structure is to secure the services of a reputable home inspector. Their services can save you thousands of dollars later on and pull you out of a potential money pit. If you are signed on with a Buyer’s Agent, they will be able to provide you with a reputable list of good home inspectors and who they always refer. If you don’t have an agent working on your behalf, you can always ask friends and family who they would recommend.
Be aware of the buyer’s expenses and costs of owning a home: After finding a home or two, sit down and figure out if you can even meet the expense of this purchase. There is much more to take into consideration than your monthly mortgage. Consider whether or not you will be able to afford the utilities, property taxes, repairs, lawn maintenance expenses, and so on. The cost of private school tuition and transportation will also add up if you go that route.
Protect your assets: Overall, the best way to protect your assets during this process is to have every part of the sale in writing. Make sure you understand every aspect before making this huge commitment. For the future, it is strongly encouraged to purchase homeowners insurance after purchasing your new home, which will surely help you in the long run. A Buyer’s Agent will have some great companies lined up that you can talk with.

These tips were intended to make you feel less stressed about the process of buying your first property. Hopefully, we have lessened your headaches and sleepless nights, putting this investment back in your control. You don’t need to make buying your first home a scary process; you can make it a carefree, fun adventure. The real estate world is now in your hands – Happy Home Buying!