top-7-tips-for-first-time-homebuyers | For Buyers

Details: Category: For Buyers For Buyers; Published: 20 January 2007 20 January 2007; Hits: 21751 21751

Here is a great article by to help first time home buyers... This should be an exciting process, not a scary one. Enjoy the time that you will be buying your first home. Take pictures. Create some fun memories. Don't get too stressed. Rely on professionals to give you good advice; someone you are comfortable with and you can trust.

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It's a great time to buy Idaho Real Estate!

Purchasing your first home is a big step, that comes with some very serious decisions. Many homebuyers are intimidated by the process, and continue renting much longer than they should, or need to. However, if you break the homebuying process down into these simple steps, and follow these important tips, you will find the process less intimidating, and much more manageable.

1) Before You Begin, Ask Yourself One Question

Will you live in your next home for at least 3 years? If the answer is "Yes," you should probably purchase, rather than continue renting. With average appreciation, you'll break even on your closing costs after 2 years, and start making money at year three. Every year after that will put more money in your pocket! The most expensive aspect of real estate is buying & selling, so the longer you can live in the home the better. However, purchasing makes sense if you can make as little as a 36 month commitment. (Keep in mind, in a growing market, you may move more frequently if you have gained substantial equity...Also, if you live in your home as a primary residence for 2 out of the last five years, you most likely will not have to pay any additional capital gains taxes...See my article on buying Idaho Real Estate and Everything You Need to Know About Idaho Real Estate.

2) You Don't Need a Down Payment!

It always surprises me how many people want to purchase a home, but don't because they believe that a hefty down payment is required. Zero down programs are very common, and are quickly becoming the norm, rather than the exception to the rule. Because your new home is collateral for the loan, there are many banks that will jump at the chance to loan you 100% of its value. Perfect credit isn't a requirement, either. Because real estate typically appreciates in value, it's often easier to be approved for a 100% mortgage than it is to borrow 100% for a car!

3) Get Pre-Qualified

Pre-qualification is a very important step, and the step that first time home buyers dread the most. Qualifying to buy a home is pretty easy and requires relatively little work for you. Pre-qualification is what gives you buying power and allows you to make an offer on your dream home when you've found it. More importantly, pre-qualification will let you know how much your new home will REALLY cost - in monthly payments. A $150,000 or $300,000 home doesn't mean a lot to most buyers - but $1200 per month and $2500 per month are tangibles that everyone can understand. After your lender pre-qualifies you, ask them for a "payment table" that shows you a rough estimate of TOTAL monthly payment based on purchase price. Pick your payment, and you know the price range to shop in.

4) Consult a Real Estate Professional ASAP

Many first time home buyers avoid contacting a Real Estate Agent because they dislike high pressure sales. However, Real Estate Agents have an advantage over traditional salespeople because they have access to the Multiple Listing Service, which is a database that lists roughly 99% of the homes for sale in a given market. This means that your Real Estate Agent doesn't have to sell - he/she merely presents your options. The most important qualities to look for in your Real Estate Agent are his/her knowledge of your specific market and their willingness to help. Interview a few agents and choose one that will help guide you through the process. You'll find the help & insight will be invaluable - and you'll be glad you contacted your Real Estate Agent sooner, rather than later.

5) Make a List of "Must Haves" & "Wants"

Many new home buyers mistakenly think that they will "just know" when they "walk into the one." While some buyers DO fall instantly in love with a home, this is not the norm. You'll find your search is easier, and you will be more confident in your decision, if you take a systematic approach to your search. The best way to organize your search is to make two lists: Your "must haves" and your "wants." Your "must haves" are the absolute necessities in your new home - in fact, you don't even need to view a home if it doesn't have every "must have." Great examples of your "must haves" are price, school district, size, etc... Your "wants" are the qualities that you would like for your new home to have, but it's not a necessity. Great examples of "wants" are color, flooring, kitchen appliances, surround sound, and type of exterior. By taking the time to articulate what you need and want in your new home, you will know exactly what to look for when viewing prospective homes.

6) Pick Your Favorite Neighborhoods

You can always make changes to your house, but you can never change its location. Most home buyers already have a good idea of where they would like to live because of school districts, work, or other factors. However, neighborhoods can be pretty different, even in the same area of the city. Ask your Real Estate Agent to email you a list of homes in the specific area of town you're interested in. Take a drive through the different neighborhoods on the list your Real Estate Agent sends you, and choose your favorites. Pay attention to area amenities, how well the yards & common areas are kept, and if you see a lot of "for lease" signs - which can be an indication of a heavy rental area, and lacking in "pride of ownership." After you have picked your favorite neighborhoods, and you know your "must haves" and "wants," you can literally make a list of EVERY home available that meets your criteria, and view those homes.

7) Make Your Decision!!!

Homebuyers often hesitate after they've found the right home because they're not confident about their decision, or their decision-making process. Your home is probably the largest investment of your life, and it's normal to feel butterflies in your stomach before putting your first home under contract. However, if you do your due diligence - and you have if you followed the steps above - then you will have your bases covered. If you've found a home that meets all of your "must haves," most of your "wants," is in the right neighborhood, and in your budget - it's the home for you! Don't wait and let another buyer take YOUR home!

Buying your first home can seem very intimidating, but can be extremely exciting. If you think that buying a home is right for you, it probably is. Make sure and follow these important tips and you'll know you made the right decision when you find your first home.

Eric Bramlett currently manages his Downtown Austin Real Estate Guide, his Tulsa Real Estate company’s website, his Austin Real Estate Guide & his Austin Condos Guide.

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"Thank you Don for your considerate and professional help on selling our house. Your informative correspondance we recieved before deciding to list it, got you the house, and your continued contact to let us know what efforts were being made to advertise and show the house were greatly appreciated. Showing mutual respect, we feel like we have made a new friend!"
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"Just wanted you to know that we really appreciate how smoothly the sale of our home went. It really could not have worked out any better. The wide marketing of our home you initiated really paid off. Thank you for a terrific experience. You have our highest recommendations, and we'll be more than happy to pass it along. God Bless!"
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~ Meguel and Kris Escutia, satisfied buyers

"Thanks to Don Wixom, we have been enjoying our new home for six months now. Don as the realtor selling our house worked very hard for us. He helped us through all the complex paperwork involved in making offers, getting a loan, etc. Don paid attention to detail and kept us well informed about how things were going. When things needed to be done, Don was readily available, seeing us through a home inspection, even crawling under the house in the dirt and cobwebs when we asked him to. Don was always only a phone call away. We still remember his phone number, we called him so much! Don has a wealth of experience and resources to offer. We would definitely recommend him to anyone wanting to buy or sell real estate."
~Scott and Naomi Watson, satisfied buyers

"We were long distance buyers. We had been through some major life changes in 2005 and had first contacted Don Wixom in August of 2006. He stood by us 2 1/2 years showing us houses, driving out to houses and emailing us pictures when we were unable to go ourselves, never knowing if he actually would have gotten a sale from us and he never complained or pressured us once.
He always treated us with great respect as if we were his only customer. Don has done more for us than we would have done for ourselves. He gave us great advice. He was always learning what it was that we were looking for. As our needs changed midway through our searching he adjusted to them.
His website allowed us to search the multiple listing service without addresses and phone numbers needing to be given. He would always check into and answer our questions and requests.
When buying or selling in Idaho we would never consider anyone but Don Wixom. He stayed with us for the long haul and we will stay with him."
Steve and Jean McBee, Buyers Nampa

"Thanks Don, for the link to IDX app for iPhone. Works great! All the information I need right at my finger tips! Thanks for always leading from the front!"
Ernie Garza, Buyer