The #1 Reason It Is Difficult to Find Your Dream HomeThe headlines in real estate today all revolve around one major point: there is a shortage of homes available for sale. Price appreciation
DOs And DONTs For First Time Home Buyers
Buying a home is a monumental purchase. It might seem intimidating to take the first step, but following a few easy DOâ€™s and DONâ€™Ts will make sure youâ€™re on the right track!
A couple of DO's to get started...
Know your credit score.
Check your credit score before beginning the home buying process so you know where you stand. The better your credit, the better the terms of your loan. If your score is looking a little low, you might want to spend some time trying to raise your number before meeting with a mortgage specialist.
Get preapproved for a loan.
Make an appointment with a mortgage specialist to get preapproved for a home loan. Preapproval is a written guarantee by a lender or mortgage broker to grant you a loan up to a specified amount. Being preapproved also means that you will have more pull than a competing buyer who is only prequalified.
Learn more about local neighborhoods.
Explore either by internet or simply driving around! Target an area that you can really call home. Check out demographics, schools, restaurants, and work commute.
Investigate programs for buyers in your area.
Many cities and workplaces offer programs to build their communities by helping first-time buyers. Check with your local real estate specialists at Exit Realty to point you in the right direction!
Identify your wants vs your needs.
Knowing the difference between what you really need and what you actually just want will help you compromise and stay on budget. You may need a certain number of bedrooms, but you want an open plan kitchen.
If youâ€™re hoping to secure a mortgage in the next 6-12 months, job stability is key! Stay in your present position until your purchase is closed, if possible. If you do get offered a job that pays more, you can probably still get your loan approved, but be warned that you will have to jump through more hoops!
Make large purchases.
Large purchases â€“ like buying a new car or lots of furniture â€“ can affect your credit and set off red flags for lenders who worry you wonâ€™t have money left when you need it. We advise you to wait to make substantial buys until after you move into your new home.
Get attached to the first house you see.
Itâ€™s easy to do. You fall in love with the first house you place an offer on, and then are heartbroken when someone else gets it. So many factors are involved in a successful real estate contract. Talk to your agent about your local market so you have realistic expectations from the get go.
Miss an opportunity to negotiate.
First-time buyers donâ€™t usually know the many different kinds of negotiation that can take place before escrow closes. In addition to price, you may be able to negotiate for repairs, a new paint job or an extended move-in/out window. The agent you choose will go to bat for you, so be sure to pick a good one! I can help you with all of your negotiation requests.
Buying a home can be a long process, but it is rewarding in the end! Donâ€™t give up if you donâ€™t find what youâ€™re looking for right away. New houses come on the market all the time.
Have more questions about the home buying process? Give me a call anytime, (407) 729-0556. I'd love to help you on your way!
Deirdre is a Broker and co-owner, with her husband Steve, of EXIT Realty Champions in Davenport - the closest office to Disney World Orlando! With 12 years of experience over a broad range of real est....
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