First Time Home Buyer Tips

You have just made an offer on the largest purchase of your life, then it sinks in along with doubt and second guessing. This is what is called buyer’s remorse something that no one wants to contract. I am pretty sure that we all have been there, it is that feeling you have either bought something way beyond your means or you paid too much and received too little.

Often you are stuck with the purchase, unlike with purchasing a car, in real estate there is no recourse for the buyer once all of the papers have been signed and you take possession of your home. How is it that buyers find themselves regretting their purchase? The answer is simple, most folks let their wants and desires drive their decisions, this combined with a lack of knowledge of the process and its consequences can leave a new homeowner wondering how they got into this position.

Do not be this person, to insure that you choose the right home you must properly prepare yourself. Purchasing a home is a live changing investment, one if done properly can set you in a positive direction for years to come. With the guidance from the paragraphs below you will gain tips that will help you make choices that will make your transaction move along smoothly and result in you being homeowner without regret.

Build Your Team…

For most of us purchasing a home is likely one of the largest investments that we will make. Starting with the right foundation is imperative to having a smooth transaction, this starts with choosing the right real estate broker to represent you and your interests. The right broker should be someone whose experience and personality makes you comfortable. You want to select a broker who is familiar and knowledgeable about the area you plan on moving to.

Get Pre Approved…

The next piece for your team is selecting a lender who has the same traits that your real estate broker has. You will want a local lender who knows the area and have loan products available to fit your needs. They will help you determine how much home you can afford. This is crucial as there is nothing more frustrating than finding the perfect home, then discovering it is out of your reach price wise. Ask your real estate broker for several recommendations of who has done well for their clients. Then when you find the right lender, get your paperwork to them to be processed. This way you will know what you can afford and will be ready to make an offer once you find your perfect home.

Keep your Credit Clean…

Your lender will share with you that one of the first steps to determine the amount of home you can afford they will need to use how much debt you carry in relationship to your income. They will use this to determine the percentage of your pre-tax income you spend on debt. To figure your debt they will ask for the following: monthly housing costs, car payments, credit cards, student loans, and any other installment debt. One of the most crucial pieces of advice is not to take on more debt before closing the sale of your new home. Lenders check this right up to the day of closing the sale. Any large purchases will tip the scales of what you can afford and have an impact on your ability to secure your loan. 

Have a Property Search Portal…

To best understand the real estate market and make an educated decision you need to be up to speed on what homes are available, how much and how quickly they are selling. You have made your way to my site so take advantage of using the websites search feature to browse all the active listings available in Central Oregon. Once you have found some homes you like, you can save those searches and sign up for property watch so new listings that match your preferences will be emailed to you. Additionally I can create a search portal to our local multiple listing service that also sends along listings that are matched to your specific preferences. The best homes move fast these days. Do your homework and make sure you are up to speed on all that is available to you at all times so you do not miss out.

There Are No Bad Questions…

If you have not owned a home before you are going to have plenty of questions both of the home you select and of the process to purchase it. Never shy away from asking questions, more knowledge makes it less likely you will suffer from buyer’s remorse. Your lender and I will be able to answer most all of your questions about the purchase process. For the home the person who has lived in the home is going to be our best source of information as no one knows the home better than the person who has spent many a day there. That said the sellers interests and yours might not align leaving the seller to possibly not disclose all that they know of the home/property. It is not always possible but finding out and understanding the seller’s motivation for selling can work to your advantage when negotiating the price of the home. Never be shy about asking your questions, it could end up saving you a lot of money and grief in the long run.

Know the Home, Get It Inspected…

One more crucial piece of your team is the property inspector. They can help you determine what could be a real issue with a home and what items are not quite as urgent and could be addressed down the road. Your inspector can help you avoid purchasing a home that is going to tax all of your resources moving forward. Your inspector is insurance against the seller who has not shared all they know (or do not) about their home/property. Your inspector is going to check on all of the major systems of the house from foundation to roof, calling out any actual or potential problems. The inspectors report is a key piece in negotiating for repairs to the home or property. Any issues disclosed in the report are tools that will help you make an informed decision, allowing you to possibly negotiate for the repairs or a concession on the sales price.

Remember, for any questions you have I am always just a phone call, text or email away.

Need help understanding popular real estate terminology? Click this link to check out a glossary of real estate terms.