When I help a first time home buyer, I want to know they are ready to purchase a home, because it is a very large step from renting to buying, and if you aren’t ready, you could be stepping in to a very deep hole that you can’t get yourself out of.
One
of the first things I
suggest a 1st
time home buyer to do is to check out a
rent vs. buy calculator and see if this is something they are
even ready to
do. (For many, it may be actually better to continue renting, depending
on your
situation.)
The second thing is, if
you think you are ready even after checking out
the
rent vs. buy
calculator, then the next thing I suggest you do is contact a few
mortgage lenders. It is very important to find out what
you can
actually
afford. (You can call me for a list of mortgage brokers / bankers that
I
recommend who I know will get the job done.) With interest rates
changing daily,
and your payments being based on your credit score, your payments can
vary
greatly for the same house depending on that credit rating, sometimes
as much
as $200 a month.
The next thing I’m going
to suggest is to find a real estate
agent that you like and you
trust. Remember, you are going to be working very closely
with this
person for
the next couple months on the biggest purchase of your life, and if you
don’t
like them or trust them, then move on, because usually your gut is
correct!
Once you have found your
agent, you can now start the home search. Upon
finding
the home you want to put an offer in on, there are many steps to the
process
before you actually get to move in. A major one includes the
inspection which will cost you around $350 - $500. I highly
recommend
everyone should get an inspection. The second is the appraisal. This
will also
run you about $500, but it isn’t paid until closing and this will be
required
of the lender prior to closing. They won’t lend more than the home is
worth in
most cases. (There are a few exceptions.) But, if you do think a home
is worth
more than the appraiser says it is, you may get the loan for the amount
the
appraiser says it is worth and then pay the remaining amount in cash or
trade,
if the owner will consider that as an option.
For more information on
buying your first home, please contact me
anytime. I
would love to sit down with you, discuss all your options, and help
your family
home.
Todd Clark - Broker / Sales Coach
Palazzo Realty Group
Phone: (503)524-9494
Fax: (503)622-8739
Other articles for 1st time home buyers:
Buying your first home in Beaverton Oregon doesn’t have to be stressfulBuying your first home in Beaverton Oregon: Don’t let the inspection scare you!
©2009 Todd Clark - Beaverton Oregon Real Estate: 1st time home buyers, know the facts before you start looking
Great tips. I would highly recommend Todd to anyone looking to buy a home in the Beaverton OR area!
Great post this is good for anyone looking to purchase a home for the first time.
These are great tips, thanks for these great reminders for 1st Time Homebuyers.
most of our lender are requiring the appraisal be paid for by the borrower upfront - on an FHA loan or one that we have asked for closing costs be paid by the seller they will get it back at closing but otherwise it is paid prior to the appraisal.
Todd
A first time buyer and buyer would do great by following these guidelines, and having a great Realtor like you.
Great straight forward advice for the first time homebuyer! I really like mentioning the rent vs. buy calculator.
Todd,
I think most 1st time home buyers don't realize that it isn't like car shopping. You don't go out pick the home and get to move in that night. It really is a 45-60 day process now and you have a lot of work as a buyer before you get to move in.
I've been in conversation with a friend I met on Twitter. He's a financial planner - we're hatching a scheme to offer his services to new clients as part of working with my team. He would do a light analysis of their readiness to buy and help them get structured.
Most first time home buyers are given advice from so many areas they need to find someone that will help them make the right decision. We can be that person that can guide them through the process.
Thank you Mark that means a lot! I think a lot of people aren't told what to expect when they buy a home and that is the type of person that is interviewed after the sale and they say they felt confused and if they had to do it over again they wouldn't have. Education is the key to a successful and happy sale.