Confused? You probably are if you are a first time home buyer. Read on.
The current real estate market offers wonderful buying opportunities for first time home buyers. Lets look at some of the reasons.
- Home prices are lower than they have been in years.
- Interest rates are close to all time, historic lows.
- There is an 8,000 tax credit available specifically to first time home buyers, who buy this year.
- There are lots of homes on the market to choose from.
- First time home buyers do not have to worry about selling another house, in order to buy.
So, as a first time home buyer, what do you fear the most? From the many first timers that I work with and speak to, it seems as though the real estate buying process, is confusing, and overwhelming. I hear, all the time, things like, “we didn’t even know how to start the process”. This is a very common feeling.
I really enjoy working with first time home buyers, and would like to try and help clarify the process, and hopefully, make first time home buyers a little more comfortable with the entire process, from start to finish. In a series of posts, I will try and take the mystery out of buying a house.
For now, lets assume that you have decided to consider buying your first house. Where do you start? My first suggestion, would be to begin learning as much as you can, online. There are many websites, including my own, that allow you to search for houses that are on the market. Beging to get a feel for what is available. In the following posts, I will talk about the various steps that you will face, including financing, locating the right house, making an offer, home inspections, closing, and follow up after closing.
I will say, for now, that it is important to speak with a trusted mortgage person, very early in the process. Although this might be intimidating to you, as a first time home buyer, good mortgage people are very accustomed to speaking with first time home buyers. You will be asked to provide information about your income, debts, cash, investments, etc. It is a good idea to let the mortgage person run your credit report. It will not cost you anything, nor will you have any obligation to the mortgage company. Basically, the mortgage company will be able to tell you how much money you can borrow, and whether there are any issues on your credit report that would be problematic. Please keep in mind, that it is possible that the bank will lend you more money than you are comfortable spending. That is totally fine. You should have in mind, a monthly payment that you are comfortable with.
You can speak with family, friends, collegues, etc, to get recomendations of good mortgage people. Once you have the information from a lender, you are ready to move to the next step in the process. I will get you to the next step, in my next post. In the meantime, if you would like to learn more, please feel free to email or call me. I can also recommend several excellent mortgage people who will provide great service and guidance.
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