First Time Homebuyers
Mistakes & Tips
Don't get the best financing from their lender
because they didn't ask enough questions.
Lost their dream home to another buyer because they were
not prepared to act quickly.
Buyers jump at the first real estate agent
they meet without interviewing a professional Realtor® to make
sure they will look out for their best interest.
Low balling their first offer or not making it
very attractive to the seller and they lose the deal.
A lot of first time buyers will only stay in
their home for an average of 4 years so they make a mistake by
not considering resale potentials.
First-Time Homebuyers Tips
Be excited, but remember this is your very first
home purchase so try to be realistic. No home is perfect, but
it will be a stepping stone to your financial future.
- This will most likely be a life changing event and the biggest decision
your family has made. It's imperative that you do as much investigating
as possible to protect yourself.
- There's an old expression of "getting your ducks in line".
This is particularly true when purchasing a home. Check you credit
make sure you have a nest egg of savings to carry you through this
transaction. In addition to your downpayment, ask your lender for an
estimate of closing cost.
- You don't want to put off talking to your lender until your ready
to put in an offer on your new home. Talk to them as soon as possible
to get a pre-approved
mortgage letter. Initially they should be able
to provide a pre-qualified letter, but that really doesn't hold much
weight. A pre-approved letter will give you a stronger position in
negotiations with the seller letting them know that you will most likely
be able to close on the property they are selling. Start this process
- You'll want to consult the people in your life that you trust the
most. Whether their family, friends or associates they'll all want
to help. Pick just a few to help guide you in your decision making
process. Too many different opinions from too many different directions
- When you submit a contract to purchase a home you will be selecting
a closing date to take possession. You need to coordinate this date
with your lease agreement and whatever arrangements you have made with
your landlord. You don't want to be making a lease payment plus a mortgage
- Another decision you need to make is the length of time you plan
on staying in this first home. Is this a starter home that you will
be selling in a few years and moving to something else or is this a
perfect home that you plan on staying in for a long time? How you decide
will also have an impact on your mortgage. You might want a 5 or 10
year ARM (Adjusted Rate Mortgage) in the short term or maybe it would
be better to get a 15 or 30 year fixed mortgage. Check with your lender
for the best options for you.
- Do you plan on painting, decorating or buying new furniture for your
new home? Well you need to budget for that expense when considering
your price level. It would be nice to get the biggest house you can
afford initially, but you don't want to sit in a empty home and not
be able to enjoy it. Write down all the expenditures you expect and
then make a decision based on the real facts.
- Of course you're going to be excited about your first home. You should
be excited. However, don't skip over the important decisions you need
to protect your investment such as insisting on a home inspection before
closing on the property and possibly negotiating a one-year home warranty
into the contract.
- You really should secure advice from a
professional Realtor® to guide you through this transaction.
A real estate agent who has been trained and educated to help buyers
specifically has a ABR designation after their name. ABR stands for
Accredited Buyer's Representative and they will look out for your best
interest. In most cases this professional advice will not cost you
anything at all since in a lot of states the commissions for the brokers
are paid by the sellers of the property. When in doubt, ask questions.
RUTH BETHEM, ABR, CRS, GRI, Realtor®
Premier Sotheby's International Realty
4001 Tamiami Trail N, Suite #102
Naples, Florida 34103
Phone: 239-777-7007 or Toll Free 877-777-7545
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