5 Tips for First Time Home Buyers
Ready to buy a house? Follow these guidelines for a smooth transaction.
First Time Home Buying Tips
Are you looking to be a home owner this year? Are you not sure where to start? Buying your first home can be extremely scary, but gathering as much information before you start can help ease the anxiety. Below you will find five home tips for first time home buyers that will help you through the process!
Follow these 5 Tips!
Tip 1: Get Pre-approved
Get preapproved with a lender. Most people think they need to find the right house before they talk to a bank, but we actually recommend the opposite. Talk to a lender before you start your search, so you know what price range works best for you. A lender can help you figure out which type of loan you qualify for, and they can give you a realistic expectation for your monthly payment.
Once you have all the financials in place, you will be ready to make an offer when the right house comes up. Worried you won’t find something for a long time? That’s ok! You can simply email your lender and get an updated approval letter if the letter expires.
Tip 2: Find a Realtor
Find a great realtor to help you with your home search. As a buyer, having a realtor is essentially free. Realtors not only unlock doors to help you view houses, they are also great resources for finding off market homes and negotiating with sellers. Found a house For Sale By Owner? That’s ok! Don’t hesitate when it comes to hiring a realtor, most sellers don’t mind working with a buying agent because the process becomes much easier for them.
Realtors have plenty of experience with every situation and will guide you through the home buying process. And once you find the perfect house, having one is essential for working through contracts and staying protected.
Tip 3: Communicate with Your Agent
Once you have found a great realtor to work with, make sure you pick at least three “must haves” in your next home. Let them know exactly what you’re looking for so they can create a custom search for you.
Once you start looking, chances are your must-haves list will change. This is totally normal, just be sure to communicate with your agent so they can adjust your search.
Finding a home can take a very long time, so be patient and stick with your agent. If you’re working with someone on the Daugherty-Phelps team, chances are that your agent is sending out letters and making phone calls to find an off market home for you, so check in with them and see how things are going! The more communication, the better!
Tip 4: Know the Process
After you have found the perfect house and your offer has been accepted, the contract phase has begun. It’s important to have a great realtor who can guide you through the process, but here are the basics to get you started.
1. Inspection- Within 14 days of the accepted contract, you need to get an inspection. Your realtor will help you schedule this, and it will be your responsibility to pay for this service. It’s always important to have an inspector look at the property extensively and let you know about any deficiencies. If there are any major defects found, your realtor will help you renegotiate the purchase price, or get additional funds to pay for repairs.
2. Appraisal- After the inspection and renegotiation for repairs, the next phase is the appraisal. The bank simply needs to have proof that the home is worth the amount you are going to be paying, so that is why they will schedule the appraisal. The bank will not let you borrow more than what a home is worth. So if the appraisal comes back too low, your realtor will help you renegotiate and/or come up with a new plan of action.
3. Final walk through- Your realtor will schedule a final walk through of the property right before closing. This is the time for you and your realtor to inspect the property and ensure the seller made all the agreed upon repairs. It’s important to have all repairs made before closing!
Tip 5: Don't Make any Large Purchases During The Transaction
While the inspections and appraisals are taking place, the bank is hard at work doing their underwriting for your loan. They are working their magic and closely monitoring your purchases during this time. It is so important not to make any large purchases or take out any additional loans during this time. You would not want your credit to be affected while the bank is helping your with your home loan, because it could potentially change your ability to take out the loan. Please consult your lender if you have questions!
Buying a home can be a long process, so be sure to have someone who can help you through it. The realtors at the Daugherty-Phelps Team would love to help, so call us today if you are thinking about taking the leap. Good luck!
