Real Estate Agent – Orange County, California – Pat Monahan

A recently published article from the research staff of the NAR (National Association  of Realtors) titled “Economist’s Commentary: Future First Time Home Buyer Perspective” by Tyler Morrison, Research Intern, very clearly describes the first time home buyer’s dilemma from a graduating student’s perspective. The points made are appropriate for any first time home buyer.

Here are some highlights from that article and important things to know before becoming a first time home buyer:

       Buying a home is a very serious event no matter how many times you have done it. You may be signing a contract binding you for the next 30 years. Many FTHBs make a few similar mistakes over and over again. They ask too few questions of their lender and end up missing out on the best deal. They do not act quickly enough and let someone else buy the home. They do not find the right agent for them, one who is willing to help throughout the home buying experience. When they have found their prospective home they do not do enough to make their offer look appealing to the seller. And, they do not think in the longer term about the resale of the home before they buy. To make sure you are making the right moves here are a couple of tips to prevent any mistakes or regrets in your home buying transaction.

• Be picky, but don’t be unrealistic. There is no perfect home.
• Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.
• Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and your closing costs
• Don’t wait to get a loan. Talk to a lender and get pre-qualified for a mortgage before you start looking.
• Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.
• Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?
• Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as type of mortgage terms that suit you best.
• Don’t let yourself be house poor. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals.
• Don’t be naïve. Insist on a home inspection and if possible get a warranty from the seller to cover defects within one year.

The best way to insure that you satisfy the above quoted advice is to work with an experienced Realtor who will jump these hurdles with you. A first time buyer cannot possibly know what the requirements are and how to satisfy them; where the pitfalls are and how to avoid them.  Would you go to court without a lawyer?  Would you avoid seeing a dentist for a painful tooth?  Then it is just as important to seek real estate help from an experienced realtor.  

Remember that a home is a place to live, grow and thrive. It is not just an investment.