The First Time Home Buyer Calls:
There Giddy with excitement as they have finally decided to take the home buying plunge. There impatient the time has come to buy that home and since the decision was made yesterday it has already been a long time. Hurry up and show me something. If the Realtor should ask to many questions then skip onto the next one that just runs out and shows them a home. Better yet lets call 3 or 4 realtors surly we will get better service that way.
They come across the drag of a Realtor. The one that goes “Haaave you been pre-qualified”? Pre-qualified whats that? Of course we have good credit! We will worry about that later. Lets go see a house!
Hurry! Lets go! I really want to see it today. And off to the houses they go. She falls in love with the first house, he hates it. Then the arguments begin. Before you know it we are discussing how many children were going to have, who gets which rooms and who’s mother gets to live with us. And I don’t even like his mother she says. But we get that hashed out and finally ” find the one.”
Remember that “drag” of a Realtor we mentioned earlier? The one that wanted our first time home buyer to pre-qualify? Well now we are going to learn why we “should” have listened to that Realtor. That offer needs a Pre-qual letter. So now that the dream house is found we need to get that done yesterday because were going to lose that house if we don’t get an offer on it right away!! And that’s the day we find the blemish on the credit. And we also learn that $200k house we just fell in love with well we only qualify for $175k. We can’t afford it. That makes for a great relationship moment! One of you paid a bill late and someone doesn’t make enough money! Lets sleep on that one tonight!
There are so many hoops to jump through to make that first time home buying experience as smooth as possible. From having a well thought out plan to even an idea of what you want for a home. What features, a dream list per-sea.
A good talk with a financial adviser or a mortgage person is a great place to start. There are so many different loans and loan programs out there that you should know what you qualify for before you even start “looking” at a house. Some loans that you will qualify for are for certain locations, some for certain income brackets, neighbor hood rehab loans that are available to people of certain occupations ie. teachers, police officers etc. You want to have your financial ducks in a row!
It is to your advantage to decide on the price range and the size of your house payment long before you get swept away with the excitement of a new home. It’s a budget saver and a relationship saver all in one.
So your well laid out plan on buying your first home is starting to come together. You have your savings, your down payment, your pre-qualified letter in hand and you know the price range your going to be shopping in.
So let’s go look at some houses! So before you start calling every Realtor you find on-line. Now is the time to do a little home work. Do you have some that can be referred to you? So interview a couple of them. They should have some experience in helping a first time home buyer. Hopefully they know the neighborhoods that you are interested in and can give you a little advice maybe know a few inside tidbits of info on them that you wouldn’t know otherwise.
Are they a good fit for you? Can you communicate with them? Home buying can be a little frustrating. Will they answer your calls and your questions? Can you text them how do you get a hold of them when you have a question. When do they work? Make sure that it’s all a good fit. Your going to work pretty close with this person for the next 2-3 months.
Once you have selected your Realtor don’t be surprised if they ask you to sign a buyers Representation agreement. Yes they expect your loyalty. There going to be doing a lot of ground work for you and yes at some point they are going to expect a reward for there hard work. Aka a pay check.
So off to the houses you go. You find your favorite and in goes the offer. This is a good time to listen to the advise of your agent. Do let them help you! I can’t tell you how many first time home-buyers have to lose on a home because someone told them to low ball the house or some other crazy idea. Your Realtor should be able to help you make a good reasonable offer. For more info on that read How to make an offer. The secret to negotiations is that everyone wins. You should feel you’re getting good value for your dollar and you should be able to prove that with com parables of the other homes that have sold in the area. Your Realtor should be able to provide that.
And you don’t want to leave your seller with a feeling of getting insulted. The purchase price is just one of the tiny little pieces of the puzzle that make for good negotiations. You have closing dates, inspections, you have the unknowns with your own loan. Nothing like finding your having problems with your loan or the bank is behind and to have to come and ask your already angry seller to work with you. And don’t get me wrong, I am not suggesting that you overpay for anything but I am suggesting being reasonable. That old adage of put your self in the other persons boot for a few minutes will help you a lot here.
It takes a team to have a smooth purchase and sale. A good attitude and a feeling of teamwork will go a long way. Emotions are always the highest during this time for you and the sellers of your new home. Lots of changes coming everyone’s direction right now.
This is where lots of prep with you lender should make the loan process smooth. You get through your inspection process hopefully you had no surprises on the condition of your new home. And you move on down the purchase pipe line. The day comes to sign your loan documents. This is always a big day for folks and a frustrating day also.
You sign your loan should the house be yours right now? Chances are probably not. Once you sign your loan documents they usually are then sent back to the lender and audited.
After they pass that little phase they then cut a check and send it to the title company or the closer to disperse. Once the funds have been dispersed and the transfer of the home has been “recorded” through the county court-house at that time the home becomes yours.
On a best case scenario that can happen in one day on a worse case it might take a couple of days. That is always something to discuss with your lender prior to your closing date so you can make a plan. Hate to see that moving truck full and nowhere to go.
A good Realtor should be happy and willing to walk you through the whole home buying process and keep you apprised along the way of what to expect at every avenue. With knowledge your armed! And with a well armed client it helps those realtors keep the fun and the charm in their job. One of the biggest joys of this job is helping a first time homeowner achieve the fulfillment of owning their first home. There is nothing more satisfying in my opinion then seeing the glee on the face of a family walking into their first home.
Please contact me with your questions and your home buying desires in North Idaho and Eastern Washington. Feel free to check out the free home search on this site. It is always available to you. Thank You so much for giving my site some of your time. I appreciate it! Have an amazing day!