First Time Buyer Tips

[flip_it_fast]

Here are some good tips that I found for first time home buyers. They are tips that can help you to plan to save up, agents and market trends. I thought they were pretty good so I thought I'd share. It is hard to buy a first house. The process and number crunching and all that goes with it is enough to boggle anyone's mind I think lol.

1. Keep credit scores high.
This topic comes up constantly in home buyer financing. Bills need to be paid on time. Buyers should not rack up their credit balances. It also helps if the home buyer pays more than the minimum monthly payment. Negative items can possibly be removed from credit reports by negotiating.
2. Save money.
Down payments, closing costs, and last minute emergency repairs require cold, hard cash. Buyers should begin a routine of saving, it will be an investment in their future. Low, weekly deposits can make a big difference. They should keep a record of spending habits, that way it will be easier to see where cutbacks can be made.
3. Become familiar with a buyer’s agent.
First time home buyers should research different types of buyer agents. First time buyers would benefit from using a buyer’s agent who specializes in first time buyers. The insight to first time buyers from these agents is invaluable. Buyer’s agents inform and direct buyers throughout the course of home buying.
4. Review Market Trends.
A buyer’s agent can be a good resource in this subject. In order to know if a listing price is fair, the buyer should be acquainted with normal prices for the area. It also gives the buyer an advantage of recognizing a good deal quickly.
5. Get preapproved.
There are a variety of lenders, rates, grants, and programs for first time home buyers. The seller may hold more value to an offer that has preapproval as opposed to one without preapproval. If the offer has more value, negotiations for a discount on the listing price are more likely to occur.
6. Create a summary of wants, needs, and budget to share with your buyer’s agent.
The more information a buyer’s agent has, the higher quality home search they can provide. Being prepared with a list of wants and needs saves a lot of time spent on vague viewings. Buyer’s agents welcome buyers who have thought carefully about what they want to buy.
7. Understand the basics of the sales contract.
Buyers can feel bombarded at closing time when they are presented with all of the information at closing. When buyers are familiar with basic terms like closing, deposit, legal description, home inspection, inclusions, exclusions, home insurance, possession date, acceptance, financial contingency, etc., the closing process can go much more smoothly.
8. Make an offer!
Two of the biggest mistakes most buyers make are:
A. Not walking away from a home if the deal is not exactly what they want.
B. Not making an offer on a home they love.

I know that is a lot to take in but it's great advice. Especially not making an offer on a house that you love. Can you imagine the sick feeling that you'd have for months maybe even years after! If you find it and can afford it, do it.

[House on the Prairie]

The one thing we wish we would have known: Know EXACTLY what your monthly payment is going to be. Our bank rolls together our mortgage + our homeowners insurance + our property tax estimate for our monthly payment, which was $500 more than our fabulous little spreadsheet estimated. Not awesome. Granted, we would much rather pay it this way than in a lump sum (because no matter when the bill would hit, it would be inconvenient), still we would have used that information and had it guide us a little better when making our home choice. Now we're just praying the market holds together for a few years so that we can spin this home into a profit!