First Time Home Buyer Words of Wisdom

When you are new to the world of home ownership, you can never ask too many questions. It is very easy to make a mistake. The best way to avoid these pitfalls is educate yourself.

1. Commitment to the process. It is typically the largest and most important purchase you will make. Plan carefully, deal with financing and ownership issues and listen to the advice of a professional Realtor.

2. Choose a professional. By selecting a Realtor, you are choosing a professional who abides by a code ethics and standards of practice and will have your best interests in mind. A Realtor will explain the purchase contract, disclosures, and inspection process to you in detail.

3. Know your credit history. Your credit history should be as clean as possible. Fix any problems you discover.

4. Get financing pre-approval. When a home buyer makes an effort to get pre-approved they gain two things 1.) how much home is affordable and 2.) a good negotiating position. There are a variety of financing options available, including programs to assist those challenged by affordability or credit concerns.

5. Be realistic about needs and wants. Make a list of the items that are "needs" and "wants" items and give it to your real estate agent.

6. How to choose the right house. Take notes when touring homes. Record the ‘pros’ and ‘cons’ and your overall impressions.

7. Make the right offer. Before making an offer, consider sales of similar homes in the last three to six months. Your Realtor can help you establish market values. A rule of thumb is that a low first offer usually results in the buyer either losing the home or puts the seller on the defensive.

8. Select a qualified home inspector. An expert in home construction building codes and safety can help determine if there are potential problems that could require costly repairs down the road.

9. Avoid significant changes. Be aware that major purchases during the home buying process may jeopardize the buyer’s ability to close escrow.

10. Prepare for closing costs. Work with your loan officer and REALTOR® to determine what your closings costs will be so you know how much you need to save before the close of escrow.