5 Tips For First-Time Home Buyers In Today's Market

5 Tips For First-Time Home Buyers in Today's Market

This weekend while I was working out of our Holding Mills Sales Model, I met some first-time buyers that were just getting started on their home-buying journey. As we talked, they asked me what I thought were the top five things they needed to know and how best to get started. I wanted to share these thoughts with you as well. 

As you know the market has gone through many different phases in the last 2 years. The feeding frenzy that we saw over the past year and a half has somewhat subsided (we still see multiple offers in certain price points) but we have fortunately moved away from the days of six-figure due diligence, 45 offers on the table, and “as is” “sight unseen” purchases. 

Take a look at the five steps below and give us a call - Kima Real Estate Group brokered by Real Broker, LLC can help you get started!

1. Get pre-approved for a mortgage: This is going to be your most crucial step b/c all things depend on this! If you have not started working with a real estate agent yet, start with your current banking institution.  Your pre-approval will give you an idea of how much home you can afford and will also allow you to be able to quickly make an offer should the perfect home come on the market. Sellers (and their agents) and their agents need to see that you can qualify to purchase the home before they pull the trigger.

2. Start saving for a down payment: A down payment of at least 20% will help you avoid private mortgage insurance and will make it easier to get approved for a mortgage. However, there are many programs out there that will let you borrow as much as 100% (VA and USDA). Your real estate agent and your lender will work with you to help you find the right loan product to serve your needs

3. Research neighborhoods: Take the time to research different neighborhoods to find one that fits your lifestyle and budget. A real estate professional can also help you with this portion of your journey. A great agent will be able to help you narrow down your options as well as guide you through the offer process, negotiate repairs and make sure you have everything you need for a successful closing

4. Get a home inspection: This is super important - even on new construction! A home inspector will be able to identify any potential issues with the home that you may not have noticed on your own. Your agent will then be able to discuss what repairs you are hoping to get the seller to cover either by handling the repair or as a repair credit. 

5. Be prepared for closing costs: This one is also a biggie as many first-time home buyers do not realize that there is a cost associated with closing on a home outside of the purchase price. Closing costs can add up to several thousand dollars, including title insurance, appraisal, and legal fees. Make sure you budget for these expenses in addition to your down payment and mortgage payments. Depending on market conditions, your agent may be able to negotiate with the seller and have them cover a portion or all of the closing costs. 

Purchasing your first home does not have to be a scary experience. Will it be stressful? Probably - anytime you are making a large investment there are going to be some nerves involved! However, having a great real estate agent will help you be able to navigate this journey with ease and leave you smiling at the closing table when you get your keys!