First Time Homebuyer Tricks
- You want to retain the services of a real estate agent who has your best interests in mind. Some agents are buyer's agents, others are seller's agents while others are dual agents--acting on behalf of both the seller and the buyer. Go with the agent who represents your interests and yours alone.
- Real estate agents will usually pre-qualify buyers before showing them the home. This step does nothing to show sellers that you have the financial wherewithal to purchase their home. Instead, meet with a mortgage broker and get approved for a loan before you start the home search process. You can lock in a rate and shop, showing your mortgage approval letter to show buyers that you are ready to make a solid offer for their home. Having secured advanced approval is beneficial when more than one party is bidding on the home, possibly giving you an edge in the eyes of the homeowner.
- The federal home buying stimulus ended in 2010, but that does not mean you have missed out completely on incentives of one kind or another. If you are a veteran, a VA Loan may be an option for you, allowing you to buy a home with no money down. The Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development, offers loans with low down payments and allows buyers to fold closing costs and fees into their loan. In addition, if you are buying a home in need of repairs, you may be able to include the costs of these repairs in your loan.
- Before you begin visiting homes, search online for available homes in your area. The Multiple Listing Service as featured on Realtor.com is one area to look as are various for sale by owner websites, Craigslist and local realtor listings. Price homes in your category. For example, if you are looking for a three-bedroom, two-bath home with a two-car garage near good schools, public transportation and city services, then review homes meeting your criteria only.
- Whether required by law or by your mortgage lender or not, you will want to retain the services of a qualified home inspector. Have the inspector check the home you are considering, paying attention to the home's exterior, plumbing, electrical system, roof, heating and air-conditioning system, appliances, fireplaces and ventilation. Check for radon, lead paint, in-ground oil tank and sewage. Have problems corrected before moving forward or ask the owner to adjust the price accordingly if you prefer to handle the repairs yourself. Start the inspection process right away, as the FCIC says that it can take five to seven days before a written report is in your hands.
