I love working with first-time home buyers. Helping you find your first home, learning the home-buying process, and guiding you from house-hunting to move-in day makes me feel great.
Here are a few things you should know before you start looking:
1. Work with a real estate agent.
Your agent will be dedicated to finding you the right property and then negotiating your transaction's terms on your behalf. You want that person to get to know you and your family's needs and preferences. Remember that the agent who shows you a home is, ethically, the one who should continue the real estate transaction. While most real estate professionals are adept at handling both sides of a transaction professionally, it makes more sense to deal with someone you have already taken time to get to know and who has your best interests at heart as the buyer.
2. You need to be pre-approved for financing.
Unless you are paying cash for your home, you need to talk to a lender before you start looking at houses. One reason is that it helps you set an accurate price range for house hunting. Looking at homes that you can't afford to make an offer on leads to frustration. A mortgage lender will not only tell you what amount you can borrow, but also your projected monthly payment, your closing costs, and what you should or shouldn't do with your finances to maintain your eligibility throughout the lending process. Another reason for having an up-to-date pre-approval in hand is so you don't lose out to another buyer. If you find the perfect house, you will want to make an offer before someone else, and that pre-approval letter must accompany your offer. I would be happy to provide you with the names of mortgage lenders in our area who have provided excellent service to my clients.
3. There are some up-front costs.
When you find the right house, and you and the seller have agreed on the price and terms and have signed the contract, you will need to make your escrow or "good faith" deposit. This is money you are risking if you back out of the deal for reasons not protected in the contract. Usually, it is between 1% and 5% of the sales price, but it can be more or less depending on what you and the seller agree to in the contract. Your agent will help you with this during negotiations.
4. Next, you should have an inspection of the property done by a certified home inspector.
This cost varies depending on the size, condition, age, and features of the home, but it is usually a few hundred dollars. You will need to pay for this at the time of service. You may elect to pay for other inspections based on the initial inspection results. For example, if the inspector notes an issue with the HVAC system, you may need to pay a service fee for an HVAC contractor to look at the system.
5. Appraisal and a survey of the property
These will be ordered, but these are usually added to your closing costs and are not expected to be paid in advance. However, you may be asked to provide a credit card number to be charged if the closing does not take place.
I will guide you through all of these steps throughout your home-buying journey. Ready to get started? Give me a call!
