Are you or someone you know thinking about buying a home for the first time? Do you feel overwhelmed by the process and are unsure about who to call first? You are not alone!
First-time home buying is an awesome and exciting adventure. However, as you’re probably aware, buying a home is no small task. Skip the uncertainty, and check out Crane Realty’s simple guide to help get you started.
Financing
One of the first tasks to tackle is financing. Before you begin looking at potential properties you need to put a price tag on your search. A common misconception when it comes to home buying is that a prospective buyer needs to have a vast chunk of change saved up. While it is certainly a great idea to begin saving for the various costs associated with purchasing a home, a great first step is to speak with a professional.
Remember, not all lenders are created equal. Try shopping around first to find one that suits your needs. When meeting with a potential lender, you will discuss credit score (here’s how to improve yours), budget, and first-time homebuyer programs. When you find the right fit, get pre-qualified for a loan so that you know what you’re working with.
Find an Agent
After gaining a more thorough understanding of your financial situation it’s a good time to reach out to another professional. Your agent will be one of your biggest resources throughout the rest of the purchase process. It’s important to understand that realtors get paid on commission from the sale, so their services are technically paid for by the seller rather than you, the buyer.
It’s crucial to work with someone trustworthy. Your realtor is your biggest advocate when it’s time to start making offers. In addition, they will assist in navigating any and all contingencies of the transaction from start to finish.
Wants vs. Needs
In order to search efficiently and effectively, you will need a clear idea of what you’re looking for. Meeting with a lender will give you a better understanding of the price range. Now, it’s time to specify that search based on wants vs. needs.
Before getting lost in listings, organize your thoughts by creating a list. Brainstorm everything your potential home must have in order of most to least important. Next, create another list of anything additional you might want to look for in a home, but that you could live without.
Start Your Search
Next, sit down with your agent to create an automated search tailored to your “must-have” list. This search allows you to see properties as soon as they hit the market. If your “must-have” list produces an overwhelming volume of results, then begin adding in your “wants” in order of importance.
This method will help you obtain a manageable supply of listings specific to your first home dreams. Now, you and your realtor can start making showing appointments to see relevant homes based on your narrowed search.
Submitting Offers
Once you discover a home that suits your needs, it’s time to draft an offer. Contract writing may seem straightforward, but it’s no simple task. Having an experienced and resourceful realtor can make or break an offer.
First and foremost, any contract should be specifically tailored to your needs. While the overall goal is to submit a contract that will be accepted, your realtor’s aim is not to “win” at any cost. This is why it’s so important to work with someone you trust. Your agent will guide you through the terminology and provide strategies based on your goals. However, you should have a comfortable understanding of everything you sign. On the flip side, beware of negotiation tactics that will work against you. More about that over here!
If you have any questions whatsoever please reach out to Crane Realty today. You can also check out our YouTube Channel for additional information, and watch Agent Joe Crane’s video for first-time home buyers!