Guide For First Time Home Buyers
If you're a first time home buyer there are a number of great programs available for you!
Check out our Ultimate Guide to Buying a Home for the first time for additonal help and steps!
Owning a home may be your dream, but in order for the purchase to be the happy and satisfying experience it was meant to be, you need to ensure that you are financially and mentally prepared for the responsibilities that come with it.
Buying a home in the Raleigh area has become quite the competition as the real estate market is strong. .
Some people have a notion that home ownership is like renting, but with the power to have pets and paint the walls whatever color you like. However, while these privileges are available to homeowners in most municipalities, they come with the responsibilities of a mortgage, taxes and home maintenance. Preparing for home ownership requires you to take critical stock of your finances and your expectations.
Frequently Asked Questions (FAQ):
#1 Are you ready to buy?
One of the most important aspects of purchasing a home is knowing when you're 100% ready and comfortable to move forward with homeownership. If you're not 100% ready, you should learn as much as you can about the process.
How much house can you afford?
Homeownership has always been the American Dream. When you're ready to buy a home, there's a good chance you will need to arrange and secure financing. A lot of our clients ask 'What Do I Need To Know About Mortgages When Buying A Home?' so we took the liberty of explaining it in a blog post.
Most people don't realize that one of the first things you should do is talk to a mortgage lender before you start searching for homes. Having a pre-approval letter shows that you're an able buyer in the minds of a seller.
What is your debt-to-income ratio?
Something lenders take seriously is your debt-to-income ratio. The lender wants to see that your overall debt is no more than 40% of your income and that your housing debts should be less than 32%.
Realtors® and lenders take these numbers seriously because they want to make sure you stay inside your budget. Homeownership should be a point of pride, not a financial burden.
What type of home do you want?
Single family, condominium, downtown apartment, townhouse, multi-family? There's different types of home, so it's important to understand exactly what you're looking for.
Raleigh Realty Can Help
You need a good agent and in most circumstances you wont know what a good agent is like until you interview with a few. We recommend that you don't hire the first real estate agent that you speak with, our recommendation is to learn, learn, learn about what the agent can do for you. You will be forming a team with your agent so you want to make sure that individual is someone you work well with.
Hiring the RIGHT agent will save you thousands of dollars
You're going to want to make sure you hire the RIGHT agent - the reason being is that, hiring the right agent will save you thousands and thousands of dollars.
Keep your emotions in check when buying a home. Sometimes buyers can let their emotions overwhelm them when buying a home which could lead to a frustrating home buying process. A good agent will explain to you that it is a roller coaster ride of emotions and that you should be prepared for anything. Understanding that the home in your head (the one that is the perfect home and comes at the perfect price) typically doesn't exist is important. Finding a home that's close to perfect is the objective.
Engage the services of a good real estate lawyer. Having a good lawyer by your side is important when buying a home. You're going to want to make sure it's someone you work well with. The legalities behind transferring ownership can be complicated at times, and a strong lawyer is your best defense to avoiding any future legal troubles. Good lawyers don't come cheap. They may charge several hundred to over a thousand dollars for their services, and the money you spend on legal representation is a good expense.
Make the offer. This is the part where we recommend our clients leave emotion at the table. Making an offer is always a fun and exciting part of the process, however until you're handed the keys to your home we suggest staying calm. Emotions can control you in the home buying process if you don't harness them correctly. A strong agent will be able to help you recognize this.
When competing in a multiple offer situation there are a lot of strategies to make your offer the most compelling. Working with a strong Realtor® will allow you to use these strategies to make your offer the most compelling even if you aren't the one paying with cash!
Get all necessary inspections done. Not only is inspecting the home one of the most important parts of the buying process, it's also one of the most important parts of the negotiating process. A great home inspector will find all the problems with the home, and don't freak out at the long list of issues! Understanding that the home inspection is also your opportunity to negotiate repairs with the sellers. Maybe the shingles on the roof are blistering, or worse, their is a crack in the foundation. Do NOT skip out on home inspections as they can be one of your greatest assets when buying a home.
The final walkthrough. Walking through the home one last time before closing the deal is something we recommend for all of our buyers. You want to make sure everything is in order and that you're ready to sign the paperwork.
At Raleigh Realty we make the home buying process easy, while saving you thousands of dollars!
Contact us for more information about home purchasing.