Ready! Set! Go!

Although being a first time buyer might seem a little scary, first time buyers often have an advantage over veteran buyers: You don’t have to sell a place to buy a place! This puts you in a great negotiating position and will allow you to take advantage of some amazing deals! Plus, with today’s prices and interest rates, you are in a better position than ever to be able to have monthly mortgage payments that really are LESS than rent. (Click here to estimate payments).

Below are some tips for first time buyers. Get ready to embark on your new and exciting adventure!

• By law, the listing agent represents the seller and must act in the seller’s best interest. Make sure your best interests are represented by working with an established Realtor who will be on YOUR side. 

• Get your financing in order before heading out to see homes. You should be pre-approved ahead of time with a reputable lender. A referral from your Realtor or a friend or colleague is the best way to go. A good lender should be able to pre-approve you within a day or so from the time you complete your application.

• Make sure you have enough money saved for upfront buying expenses such as the down payment, inspections, appraisal, loan application fee and any other miscellaneous costs that come up along the way.

• If you are receiving a down payment gift, be sure to notify your lender ahead of time.  Lenders sometimes require that down payments are “seasoned” for a certain period of time.

• Look for homes that are well within your budget. When you buy your first home, you will want to be able to do other things—like furnish it and eat! 

• In writing, prioritize the reasons for purchasing, along with the most important features you are looking for in a home, and share these with your agent. The right agent will remind you of these as you progress in your home search to help keep you on track.

• Ask lots of questions. Make sure your agent is patient and accessible and answers all your questions in a timely, comprehensive and clear manner. If your agent does not know the answer, he or she should be willing to research the answer and/or point you to a professional that does.

• Get ready for multiple offers. The first time buyer market can actually be quite competitive even these days. With affordability at an all-time low, you will likely compete with other first time buyers as well as investors paying cash. In this case, put your best foot forward, based on comparable sales, but do not get caught in a bidding frenzy. Know your maximum price and share it with your agent so he or she can remind you of this so you don’t lose sight of it in the emotion of the moment.

• Be patient! A large majority of homes in your price range will probably be short sales. You can get a great deal on a short sale, but a short sale can easily take 3 – 6 months or longer. If you are interested in pursuing a short sale, be prepared to be extremely patient.

• Time is of the essence. Once you are under contract, be sure you are clear about your timelines so that you do not risk breaching contract and losing your earnest money or the house. Your agent should remind you of deadlines, but ultimately, it is up to you.

• Before purchasing your home, drive the area at different times of day—at night, in the morning, and on weekends. Make sure you are comfortable with the neighborhood no matter what time you are there. 

• Have fun! Although you will certainly experience ups and downs in the purchase of your new home, finding your first place should be fun. Bring along your friends and snap a bunch of photos to remember the experience!

• Make sure your agent is experienced with first time buyers.  If you are ready to find out more about how the Silberman Team works with first time buyers, click here to contact us and you'll hear back right away or very soon, we promise!