Published October 20, 2022
What I Wish I Had Known As A First Time Homebuyer
What I Wish I Had Known as a First Time Home Buyer…
Thinking back to when my (now) husband and I bought our first home, there are a few things that I know now that I wish someone had shared with me back then. So, I decided to take a minute to pass these along in hopes that when you are ready to take the plunge, you feel prepared. These tips ring true even for seasoned home buyers, so read on!
Credit truly matters… Yes, you need to have a minimum credit score to be able to qualify for a mortgage. However, keep in mind that the lower your credit is, the higher the risk you are to the bank and this could also have an impact on your rate. Make sure you are monitoring your credit, keeping your credit card usage below 30% and paying your bills on time.
Don’t hold out for market conditions to change - Especially in the Triangle area! As of October 2022, we still have less inventory than we did in 2019, more buyers and the price points are higher, as are the rates. We are also still in an appreciating market - so holding off means that the prices of the homes will still be rising, despite what the rates are looking like. If you are waiting for the market to tank before you purchase, the market is going to pass you by. The sooner you buy, the sooner you build equity!
Interest Rate isn’t everything - As I write this article (October 2022) rates are hovering around 7%, which is almost double what they were six months ago. While that does have a heavy impact on what you can afford to borrow, there are ways around this - which leads me to my next point…
Get yourself a great LOCAL lender - While Bank of America, Wells Fargo, Chase, etc are internationally recognized banks that can do mortgages in all 50 states, it benefits you to use a local lender that is well-versed in our local market conditions. Plus, a majority of listing agents prefer you use a local lender. A
local lender can help you figure out your best path forward, be it with seller paid closing costs to help buy down your rate (2/1 buy downs are super popular right now), or down payment assistance programs available in the state. Hire the Right Agent - this of course is a matter of personal choice, but they will be your biggest resource and cheerleader throughout the transaction and will most likely be your best friend and therapist by the time you close. Make sure to ask the following questions when you are hiring an agent.
How long have you been an agent?
Are you full time or part time?
How many clients are you currently working with and do you have time for me
Do you work with first time home buyers
Are you familiar with the area I’m looking in
How do you like to communicate (text, email, phone, zoom, etc)
How do you help buyers compete in this market
Hopefully this will help you get started on your home buying journey! Questions? Give us a call at Kima Real Estate Group and we will get you taken care of! Meredith Gilley
