First Time Buyers
Being a first-time homebuyer is an overwhelming experience! Even if you’ve read every book you can find on the process – there’s nothing like actually experiencing it! You might consider attending a home-buying seminar, which can provide a lot of different perspectives and valuable information that you may want to consider before jumping in with both feet, and many of these classes are free!
There are many pros and cons of homeownership and all of them should be considered when thinking about it for the first time. I like to provide my clients with all the information they need in one place – so if you don’t know where to start, let me buy you a cup of coffee and we can talk about it! One place you’ll catch a break if you decide to buy a home is at tax time – you’ll get to deduct all of your interest and home-improvement related expenses! You’ll hear lenders talk about paying “points” to get a lower rate and you might want to know the pros and cons of that too – because if you’re only going to be in your home for a short period of time, it might not be worth your money up front to buy down your rate for the life of the loan (which could be a 30 year loan!) We can talk about property taxes too. They’re no fun, but we all have to pay them…..at least those are deductible too!
Some tips I might offer to first-time buyers who I’ve not spoken with yet:
-
Decide if you’re truly ready for the financial commitment. Do you have a steady job and income? Do you have any cash or savings set aside for closing costs (or possibly a down payment)? If you’re used to renting, chances are your mortgage payment might be a bit higher than what you’re used to – and you need to have the money to spend if there is an emergency! You ARE the landlord!
-
Talk to a couple of lenders to find out what you can realistically afford so that we have a starting point to start shopping for homes. Maybe try one from a bank, one from a credit union, one from a brokerage, just try and talk to a couple of people. If you have no idea where to start, I can give you a couple of referrals that I have had great experiences with in the past!
-
You might want to talk to a few insurance agents because you’ll need homeowner’s insurance if we find you a house. Many insurance companies insure homes and cars, and offer a multiple policy discount, so you might want to talk to whoever insures your car and see if they will be able to affordably insure your home as well. This is a little less intensive if you buy a condo, because then the association insures the structure instead of you personally.
-
Decide your non-negotiables as early as you can. Knowing what you want is the key to me finding it for you. If you don’t know what you really want, than I can’t ever find you the perfect home at the right price. Define what you want and stick to your guns – don’t settle for less than you want unless your goals are currently financially unreasonable.
- Always have about $400 ready to do a home inspection. Whether a house or condo, I always recommend my buyers perform one. I have several favorites that I would always trust to do an excellent job if you don’t know any, so don’t worry!