First Time Buyers – If you have never purchased or owned a home before, buying your first home can be wonderful and terrifying all at the same time. But not to worry, we are here to help.
Not every Realtor is good at dealing with the people who are purchasing their first home. They may understand how to sell real estate, but they may not realize that first time home buyers need extra attention even before they ever look at a home.
The first thing you, as a buyer, should do is sit down and figure out what you feel you can afford. Go through your bank statements with a fine tooth comb and track everything you spend money on.
The next thing you should do is dig out all of your pay stubs, if you have a W2 job, or your Tax Returns if you are self employed. Gather up statements for your savings accounts and any investments you have. Remember, you not only have to show enough savings for a down payment, you will also need to show reserves and closing costs. That means the lender on your new home will want to see that you have enough money left over after closing costs to make a mortgage payment or two if you are out of work.
Go meet with a Mortgage Lender. Have all of your paperwork with you, then ask them to run numbers on what you will qualify for in terms of a monthly payment. Then, stick to that amount. If you try and stretch you will be miserabley house poor.
Understand that real estate is a process. Your first home will very likely NOT be your dream home. You won’t necessarily have stainless steel appliances and granite counter tops and hardwood flooring. Buy the best house you can afford, and over time you can make small upgrades. Only do upgrades which will keep the house safe and sound, and make it more marketable, because chances are in the next five years you are going to want to move up.
Pay off small bills, keep credit card use to a minimum, and don’t go shopping for furniture before you close your loan. I have seen people lose their loan qualification because they went out and ran up their credit cards.
Don’t change jobs before your loan closes. Consistent employment is very important when lenders are considering lending you a few hundred thousand dollars.
Abbe and I are happy to work with you each step of the way. We will find you the best home you can afford within your parameters, and offer sound advice on how to maximize your investment. Give us a call
Alan Chane
