| Advice
For First Time Buyers
- Pre-Qualification:
Meet with a mortgage broker and find out how much you
can afford to pay for a home.
- Pre-Approval: While
knowing how much you can afford is the first step, sellers will
be much more receptive to potential buyers who have been pre-approved
(and you'll avoid being disappointed when going after homes that
are out of your price range). In this scenario, the buyer
actually applies for a mortgage and receives a commitment in writing
from a lender. This way, assuming that the house you desire
is at or under the amount you are pre-qualified for, the seller
knows immediately that you are a serious buyer for that property.
Costs for pre-approval are generally nominal and often lenders
will permit you to pay them when you close your loan.
- List of Needs &
Wants: Make 2 lists. The first should include
items you must have (i.e., the number of bedrooms you need for
the size of your family, a one-story house if accessibility is
a factor, etc.). The second list is your wish list, things
you would like to have (pool, den, etc.) but that aren't absolutely
necessary. Realistically for first-time buyers, you probably
won't get everything on your wish list, but it will keep you on
track for what you're looking for.
- Representation by a Professional:
Consider hiring your own real estate agent, one who is working
for you, the buyer, not the seller.
- Focus & Organization:
In a convenient location, keep handy the items that will assist
you in maximizing your home search efforts. Such items may
include:
- One or more detailed maps with
your areas of interest highlighted.
- A file of the properties that
your agent has shown to you, along with ads you've cut out from
the newspaper.
- Paper and pen, for taking notes
as you search.
- Instant or video camera to help
refresh your memory on individual properties, especially if
you're attending a series of showings.
- Location: Look at a potential
property as if you are the seller. Would a prospective
buyer find it attractive based on school district, crime rate,
proximity to positive (shopping, parks, freeway access) and
negative (abandoned properties, garbage dump, source of noise)
features of the area?
- Visualize the house empty
& with your decor: Are the rooms laid out to
fit your needs? Is there enough light?
- Be Objective:
Instead of thinking with your heart when you find a home, think
with your head. Does this home really meet your needs?
There are many houses on the market, so don't make a hurried decision
that you may regret later.
- Be
Thorough: A few extra dollars well spent now may
save you big expenses in the long run. Don't forget such
essentials as:
- Include inspection & mortgage
contingencies in your written offer.
- Have the property inspected
by a professional inspector.
- Request a second walk-through
to take place within 24 hours of closing.
- You want to check to see
that no changes have been made that weren't agreed on (i.e.,
a nice chandelier that you assumed came with the sale having
been replaced by a cheap ceiling light).
back to buying
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1999 |
