5 Tips for First Time Home Buyers
The purchase of your first home can be very stressful and a time-consuming experience. With that said make sure you get yourself prepared to be able to dedicate time, energy and money towards the purchase of your first home.
#1 - Get Pre-Qualified
Before you decide to start looking and start to invest your time and energy, you may want to meet with a loan officer or a bank lender. Finding a lender and being able to discuss your financial needs as well as your budget should be the first step a buyer takes in the home buying process. Meeting with a lender will allow some insight on
- How much you should save for a down payment. Most mortgage lenders require a cash down payment of 5%, 10%, or 20% of the sale price. Buyers who are unable to put 20% down have to pay an additional $100 to $200 per month to their mortgage lender for private mortgage insurance (PMI)
- Fix credit issues your lender came across while getting you qualified.
- Become educated on the mortgage loan types and choose the best one for your needs
- Finally, having an open and ongoing communication with your lender is absolutely vital from beginning to closing. Please make sure you keep that dialogue going until the funds have been distributed and you have been given the keys to your home.
Choose your Real Estate Agent wisely, they can make or break your First Time Home buying experience. I have been a resident of Austin since 1979 and am familiar with the different areas of the Austin Metroplex and surrounding areas. I have seen and experienced the vast growth and change in the Austin and surrounding areas. Throughout the years I have helped First Time Buyers, Residential Family and Multi-family Buyers, Move-Up Home Buyers, New Home Buyers, Condominium Buyers, Acreage and Country/ Ranch Home Buyers and Individuals re-locating to the Austin Area as well as those re-locating outside of the Austin area and moving to other cities or states. I have been a Real Estate Agent since February 2004 and have absolutely loved being able to help First Time Home Buyers. I specialize in Central South, Southwest, Southeast Austin, and San Marcos, Buda, Kyle and Del Valle areas.
A good Real Estate Agent has knowledge of the area and most important is their ability to listen to what you are looking for and be able to execute and follow through. Finally, they will be in your corner until the closing.
#2 - Find an Experienced Real Estate Agent
#3 - Decide on Preferred areas & decide what's important to you & your family
Once you have chosen your Real Estate Agent meet with them and decide what areas you and your family would like to live in. Taking into consideration your lifestyle and values. Additionally, what features are you and your family looking for? Consider location, square footage of home, amenities, schools you will want your children to attend, distance to workplace, or anything else that might be important to you and your family.
As First Time home buyers I recommend sitting down with your Real Estate Agent and taking a look at comparable homes. This will allow you to get some insight on what homes are selling for in the areas you are interested in. You will be able to see additional information of the homes sold such as any upgrades, defects or special negotiations.
This will help you to prepare a strong offer once you find your home.
#4 - Insight into Current pricing of Homes
#5 - Ask your Real Estate Agent about Closing Costs
Ask your Real Estate Agent about your expected Closing costs, these will not include your personal packing and moving costs. They typically provide you with a brief synopsis of what they might be. The Title Company can provide you with a standard closing cost form. You will need to ask your Real Estate Agent to request it. This is a good time to also talk about your inspections and fees associated with them. Some of those inspections might be Home Inspection, Termite & Pest Inspection, Foundation Inspection…to name a few.
While buying a home may feel overwhelming for first-time buyers, finding a Real Estate Agent you can trust will guide you in the right direction and help you prepare for the mortgage process. Best of Luck in your First Time Home Buyer Experience! Feel free to contact me with any questions or comments you might have.