Buying Tips-First Time Home Buyers

Buying Tips-First Time Home Buyers should find out what they can afford to purchase before jumping into the real estate game. Often a potential buyer will fail to do their due diligence as far as making sure their finances are in order before they fall in love with the house of their dreams. As a qualified real estate professional, I have developed some helpful tips for anyone out there looking to make that first time real estate buy.

Meet with a Qualified Loan Officer

The importance of getting current and professional help from a qualified loan officer for first time home buyers is innumerable. Try to find one that has closed many deals in the last two years, 2009-2010.

Evaluate Your Finances

Mortgage qualification is easier for buyers who are W-2 employees whose income can be easily verified. Self-employed individuals or buyers with income from investments will find the qualification process more difficult.

A few factors that will determine what sort of property you can you can afford to buy when buying your first home include:

1. The amount of cash you have available for a down payment
2. Your credit history
3. Your monthly income
4. Value of other assets

Get Pre-Approved

Serious buyers have pre-approval letters attached to their offers to purchase properties. A Buyer needs to be further along the buying process before he or she looks at homes.  Because of the downturn in the housing market, it is not easy to get a pre-approval letter from your mortgage broker or loan officer, so get pre-approved first before you do anything else. As of Jan. 1, 2010, the Department of Housing and Urban Development began requiring lenders and mortgages brokers to issue a binding Good Faith Estimate within three days of receiving a loan application.  Ask your lender what you need to give them to obtain a preapproval letter? You are in a much stronger position negotiating with a seller if you have a pre-approval letter stating that you are qualified buyer that can close escrow. You may even jump to the top of the list if there is a bidding war!

Find a Real Estate Agent to Represent You!

Ask friends who bought a home recently if they will refer their real estate agent. Make sure your agent is familiar with all the nuisances of each area of interest so you do not buy a nice home in the worst part of the city.

Location, Location, Location!

Your goal is to buy in the best neighborhood you can afford without overextending yourself financially. Don’t buy a home that you will outgrow in a couple of years. The economic recovery is going to take years. You don’t want to be caught having to sell at a price lower than what you paid.

Buying Tips-First Time Home Buyers Must Think About The Future!

Buying a home that has broad-based appeal and will sell well in any market is perhaps the most important thing to consider when buying your first home. Many homes that aren’t selling in today’s market have incurable defects, such as a steep driveway, a bad floor plan, too many stairs, or are located on a busy street, next to a freeway or too close to a commercial zone. Purchase your dream home that has curable defects, such as deferred maintenance or an outdated décor.

Follow these easy steps and I guarantee that with these buying tips-first time home buyer, your experience with buying your first home will be one of triumph, and not one of tragedy.

Thank you for tuning in to Manhattan Beach Properties, an informative real estate blog. Please contact our Real Estate Team for more information on how to use our expert services for all of your Real Estate needs.  We are here to help you buy or sell your dream home.

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