Whether purchasing a car for the first time, a home for the first time, or anything for that matter for the first time, it can come with much confusion, a high level of uncertainty, and even some stress.  The home buying process is often seen by many as a “daunting” process.  This doesn’t have to be the case though, if the proper preparation and research is done.

Each and every person who purchases a home normally will have different experiences, hurdles to overcome, and ultimately have their own opinion on the home buying process, so beware of many opinions when talking with family, friends, and co-workers.  Even though the majority of home buyers are different, the home buying process is usually the same.  There is a general outline that should be followed when buying a home for the first time.

Here are several first time home buyer tips and some advice to help make the process of purchasing a home for the first time much less stressful and seamless!

How Much Can You Afford
Whether a consumer is purchasing a car for the first time, a home for the first time, or a set of golf clubs for the first time, it’s important to know how much can be afforded!  This is an extremely important part of the home buying process.  Many first time buyers don’t realize or understand that it’s extremely important to know how much they can afford before looking at homes!  It’s common to have first time home buyers contact real estate agents and get upset when they are educated on the importance of finding out how much home they can afford before getting out into the marketplace!  It’s important that a first time home buyer understands what the costs of buying a home are but also why they are involved.

Not only is it important for a first time home buyer to know how much they can afford, but it’s also important to understand the difference between a pre-qualification and a pre-approval.  

First and foremost, a pre-approval is more attractive to a seller than a pre-qualification.  A pre-qualification is a quick and very general overview of a first time buyers financial situation.  The information used for a pre-qualification is usually given to the lender by the potential mortgagee, which can often be inaccurate.  In addition to the general overview of the first time buyers financials, the lender usually will pull a credit report to make sure the credit scores are within the required guidelines of the different loan programs.

A pre-approval is a detailed look into a first time buyers financials.  It includes a lender pulling a fact data (Tri-merge) credit report, collecting the first time buyers pay stubs,  W-2’s, verifying their employment, and any other information needed to approve the buyer.  This process may sound much more difficult, but depending on the lender that a first time buyer chooses, it doesn’t have to be!  Having a pre-approval instead of a pre-qualfication is not only attractive to a seller, but also can be the difference in a first time buyer winning in a multiple offer situation!

Set Your Expectations
When buying a home for the first time, an extremely important tip is to make sure expectations are set.  By setting realistic expectations, the chance to be disappointed or let down is minimized.  So, what type of expectations should be set before purchasing a home for the first time?

Once a buyer knows how much they can afford, it’s important to figure out what will their money get them.  When buying a home for the first time, it’s important to do it with a purpose and a realistic goal in mind.  How big of a home can be afforded?  What style of home is desired?  What are acceptable locations of the home?  It’s important that first time buyers have a strong feeling on items like these but also a good idea on which items they are willing to be flexible with.  It is a great idea to prioritize these items in order of importance.

Buying a home with no expectations or goals in mind is no different than going to a grocery store with no list or budget.  By going to a grocery store with no idea what will be purchased often will end up in lots of wasted time walking around aimlessly and ultimately not getting the results that would be expected.  By having that strong grasp on the style of home, the size of a home, and other characteristics that are desired in a home will save a first time buyer lots of time and also ensure they are purchasing their first home while staying within the range of what they are able to realistically afford.  It makes no sense for a buyer who is pre-approved for a loan amount of $150,000 to look at local luxury homes.  A great real estate agent should be able to help a buyer set realistic expectations.

Learn About the Home Buying Process
The home buying process is exactly that, a process.  There are certain steps that need to be taken to ensure the process of buying a home for the first time, goes smooth.  By understanding the process, it greatly reduces the chance that a buyer is disappointed, let down, heartbroken, or frustrated.  There are many things that a first time buyer should be doing before looking for homes, such as getting a pre-approval, but also many things that a buyer should be doing once they are under contract on their future home.  Many first time home buyers don’t understand why it generally takes 60 days from contract to closing.

Get Educated on the Local Real Estate Market
When purchasing a home for the first time, it’s important a buyer understands the local real estate market.  There are many ways this can be accomplished, from exploring homes for sale Belgrade MT, where many are relocating these days for an amazing lifestyle, to comps for pricing comparison. The internet has completely changed the way the real estate industry works in 2014!  There is so much information available on the internet that can certainly help a buyer understand the local real estate market.  The internet is great for providing a wealth of information, however, it’s also important a buyer understands that not everything that is on the internet is true.  Really it isn’t!  There are many third-party real estate websites on the internet that provide some very inaccurate information.  A perfect example of inaccurate real estate information are the “Zestimates” that Zillow provides to consumers.  The inaccurate information provided by these third-party real estate websites is not only specific to the Webster, NY real estate market.

The best place for a first time home buyer to get educated on the local real estate market is by a local real estate professional.  If someone was looking to have a dental procedure done, they wouldn’t go on the internet to look how to do the procedure or call their chiropractor.  They would call a local dentist for their assistance.  A person in Rochester, NY who is in need of a dental procedure would have no use for a dentist in Grafton, MA.  The same can be said for a first time home buyer.  A first time home buyer in Grafton, MA should not be looking to a Grafton, MA real estate agent for information on the Rochester, NY real estate market.  It is important for a first time home buyer sit down with an experienced and knowledgeable local real estate agent to ensure they have a strong understanding of the local market!

Selecting a Real Estate Agent
Buying a home is a very large event in life.  It’s not something that should be done without the help of a trained real estate professional.  There are many things that a real estate agent is responsible to ensure are getting completed accurately and timely throughout the transaction.  Ensuring a buyer has secured a pre-approval from a reputable lender, ensuring contract dates are being followed, and negotiating on the buyers behalf to get them the best price for a home are just a few items that a buyers real estate agent is responsible for!  Without this guidance, it’s very easy for a first time buyer to make a mistake that can cost thousands of dollars.

Dani khan

Dani Khan CEO at blogsfit.com. Have 3 years of experience in the websites field. Dani Khan is the premier and most trustworthy informer for technology, telecom, business, auto news, games review in World.
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