For Buyers: 10 Tips for First-Time Homebuyers

10 Tips for First-Time Homebuyers

1) Be picky, but don’t be unrealistic. There is no perfect home.

2) Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.

3) Get your finances in order. Review your credit report and be sure you have enough money to cover your downpayment and your closing costs. I recommend Ronnie Yarbrough from Firstrust for your mortgage needs. www.OlatheHomeMortgage.com

4) Don’t wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking.

5) Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion. A good real estate agent will be able to advise you if you have explained to them your needs, wants and goals.

6) Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? Can you get the seller to pay the amount to break your lease?

7) Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that suit you best. Most people buy off of emotions rather than what fits their goals. Write your goals down and make sure the home you buy fits those goals.

8) Don’t let yourself be “house poor”. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals. Most foreclosures happen because people fail to plan.

9) Don’t be naïve. Insist on a home inspection and, if possible, get a warranty from the seller to cover defects within one year. A good home warranty will cover the mechanical items in your home for upto one year. Some warranties can be extended beyond 1 year.

10) Get help. Consider hiring a REALTORÒ as a buyer’s representative. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. And often, buyer’s reps are paid out of the seller’s commission payment. Agents get paid the same, whether they represent the seller or the buyer. Doesn't it make sense to have the agent represent you. With all of their tools, it is well worth it.

Thanks,

Chris Dowell

www.DowellTeam.com