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Buyers Information
Selecting a realtor should be as important as hiring a financial planner to manage your total personal assets..........or your bank account for the next 30 years. That's how long most mortgages are today. Primary homes and vacation  homes are usually the largest single investment most people make to accrue long term wealth accumulation.
ALL REAL ESTATE MARKETS ARE LOCAL; therefore, you need a Professional Realtor to represent you and your interest: Would you use a map of Atlanta to try to find a location in Birmingham? What applies in real estate markets in your area probably is not relevant to markets anywhere else. Purchasing your first home is a big step that comes with some very serious decisions. Many first time homebuyers are intimidated by the process, and continue renting much longer than they should, or need to. However, if you break the home buying process down into these simple steps, and follow these important tips, you will find the process less intimidating, and much more manageable.
Will you live in your next home for at least 3 years? If the answer is “yes,” you should probably purchase, rather than continue renting. With average appreciation, you’ll break even on your closing costs after 2 years, and start making money at year three. Every year after that will put more money in your pocket! The most expensive aspect of real estate is buying & selling, so the longer you can live in the home the better. However, purchasing makes sense if you can make as little as a 36 month commitment. 2) You Don’t Need a Down Payment It always surprises me how many people want to purchase a home, but don’t because they believe that a hefty down payment is required. Zero down payment programs are very common, and are quickly becoming the norm, rather than the exception to the rule. Because your new home is collateral for the loan, there are many banks that will jump at the chance to loan you 100% of it’s value. Perfect credit isn’t a requirement, either. Because real estate typically appreciates in value, it’s often easier to be approved for a 100% mortgage than it is to borrow 100% for a car. 3) Get Pre-Qualified Pre-qualification is a very important step, and the step that first time home buyers dread the most. Qualifying to buy a home is pretty easy and requires relatively little work for you. Pre-qualification is what gives you buying power and allows you to make an offer on your dream home when you’ve found it. More importantly, pre-qualification will let you know how much your new home will really cost – in monthly payments. A $175,000 home doesn’t mean a lot to most buyers- but a $1400 per month payment is a number we can relate to better. 4) Consult a Real Estate Professional ASAP Buying and selling real estate is a complex matter. At first it might seem that by checking local picture books or on line sites you could quickly find the right home at the right price. But the listed home will have a Realtor working for them. Homes differ and so do contract terms, financing options, inspection requirements, and closing costs. No two transactions are alike. In this maze of forms, financing, inspections, marketing pricing, and negotiating, it makes sense to work with a professional who knows the community and much more. 5) Make a List of “Wants” Many new home buyers mistakenly think they will “just know” when they walk into the one. While some buyers do fall in love with a home, this is not the norm. Take a systematic approach to your search. The best way is to list your “must haves” and your “wants.” Your must have are absolute necessities. Examples of “must haves’ are number of bedrooms, price, school district, size, and proximity to work. Your “wants” are the qualities you would like to have but not a necessity. Some “wants” are color, flooring, kitchen appliances, surround sound, and type of exterior. By taking time to differentiate between needs and wants, you’ll know what to look for when viewing prospective homes. 6) Pick Your Favorite Neighborhoods You can always make changes to your house, but you can’t change it’s location. Most home buyers already have a good idea of where they would like to live because of school districts, work, or other factors. However, neighborhoods can be different, even in the same area of the city. Pay attention to area amenities, how well yards and common areas are kept, and if you see a lot of “for rent” signs – which can be an indication of a rental area, and lacking in “pride of ownership.” 7) Make Your Decision Homebuyers often hesitate after they have found the right home because they’re not confident about their decision. Your home is probably the largest investment of your life, and it’s normal to feel butterflies in your stomach before putting your first home under contract. However, if you do your due diligence- and you have followed the above steps- then you will have your bases covered. Buying your first home can seem very intimidating, but can be extremely exciting. If you think that buying a home is right for you, it probably is. Make sure and follow these important tips and you’ll know you made the right decision when you find your first home.
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Equal Housing