Buying your first home can be an exciting adventure. You’ve looked online and found some really great condos or houses, but you may not be sure where to get started with actually purchasing a home.
Some first time buyers make the mistake of calling every agent who has a home listed. This is can cause some bad feelings about first-time buyers. If you call many agents, there may be confusion over who really is your Realtor. Look for an agent whom you trust who will show you listings that match your needs, not just his or her own listings. Be loyal to that agent if she works at finding you a home. She will appreciate your loyalty and will work even harder to find you a great home.
(Yes, I would like help buying a home!)
Before actually going out shopping, it is imperative that you locate a lender and get a pre-approval done. The lender will completely check your credit and ability to buy a home. He or she will tell you what price you can afford, what terms are available and will locate any special programs that might be available to you. Your choice of lender must be your own, but you can ask for recommendations. Some people choose to work with their local bank branch; others prefer to use the services of a loan broker who can offer loan programs from most banks and other lenders. As with a Realtor, you should feel an element of trust and comfort with the lender you choose. That lender can send me a pre-approval letter that will give me the information I need to show you homes you can buy.
If you are a young buyer and have not watched your credit closely, be aware that your past credit history is of paramount importance when getting a home loan. A low credit score may prevent you from buying a home or it may limit your choice to a high-interest loan with a high down payment. If your credit is so-so, now is the time to get it squared away and repair any past damages. You can visit The Federal Trade Commissions Consumer Website to get helpful hints on repairing your credit. Be aware that there are some private credit repair companies who do little more than take your money and do the things you could do on your own.
Sometimes, young buyers who have not had adequate time to establish good credit can get the help of a parent, grandparent or good friend to co-sign for a loan. Co-signing is inherently riskyfor the one who co-signs because he or she is laying their own credit on the line to assist you, so be prepared for possible rejection. On the other hand, if you have someone who will offer to co-sign, this could be an ideal way to get started.
Lenders will look at your income, length of employment, other debts and your overall ability to pay the mortgage payment. It sometimes seems like the steady 9-5 employee fares better than those who have a more creative income. You will never know if you can qualify to buy a home unless you consult with your loan professional. If you can’t currently qualify, your lender may help you to determine what you need to do in the future to qualify. In some cases, this may be a five-year plan or other means to get financially prepared to buy a home.
I like working with first time buyers. It is an opportunity to provide a great first real estate experience to them. To me, first time buyers are so important to everyone’s future. We have all watched as good people we know lose their homes, one after another. I have never been involved with a sale that has later resulted in a short sale or foreclosure, and I never want to be. That’s why I want “all your ducks to be in a row” before we begin showing you homes. There is disappointment if you begin looking at $600K home when in fact you can only buy a $500K home. It's best to start looking at what you can actually afford.
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Whether you are ready to buy today or must wait for a couple of years to buy, I want to be your Realtor and serve you in the best way I can. Contact me anytime and I will help you with all your real estate needs.