Easy Steps for First Time Home Buyers

If you are a first time home buyer, you are facing even more uncertainties today than ever before and you need to find out what to do how.

There is nothing quite like owning your own home. Previous cave dwellers have developed into proud homeowners.

The current market might be very intimidating to the first time buyer but on the other hand is full of opportunities to get into your first home at a more reasonable price.

Here a quick guide to the most important steps towards first home ownership.

Examine Your Budget

If you are paying rent presently and can manage these payments, you can expect to be able to do the same for a similar mortgage premium on a monthly basis.

Do not forget that you will also have to pay home owners insurance and property taxes in addition to your mortgage premiums.

Those rental fees you paid included such hidden costs such as heating, maintenance and occasional property upgrades.

Pre-Qualify for a Mortgage

Get pre-qualified with two or more financial lenders. Work with at least two mortgage brokers and request to be told which lenders they will approach on your behalf.

Also, ensure that they are not talking to the same lenders and request confirmation.

Select a Real Estate Agent in the target Area

Selecting a real estate agent in the area you will be buying in. Do not sign with the first agent you come across but interview several and in depth.

Ask them relevant and important questions and attempt to discover one that has appropriate experience and is able to assist you. Beware of inexperienced agents.

It is a good signal if the real estate agent asks you numerous questions in return. The agent and their associated company should also offer a first class online MLS search site.

Review Real Estate Listings Online

Spend considerable time browsing multiple listing services on the Internet. Become familiar with what the market has to offer. Let the agent send you a list of what homes have just closed and demand regular updates.

Closed prices are a better indicator of value than listing prices. Be aware that closings happening today are the prices of 6-8 weeks ago.

In a rapidly falling market todays prices would be even lower.

Once you found a list of homes that interest you go over the list with your Realtor and have them supplement the list with their recommendations. Do not make a decision before you have seen all the homes on your list.

You will likely observe some of the search criteria that seemed to matter most to you might not be all that important after the first round of showings and other criteria have become more prominent.

When you started your search a pool seemed like a must have but now it turns out that a large kitchen living room area is more important.

Finalize your List

With your newly calibrated list of important features go over all the properties again and re-evaluate the MLS listings. Select five properties for another round of showings.

The goal is to find three properties that you could see yourself living in. Do not try to narrow it down to 1 property and it is not wise to do so at this point in time.

Prepare Offers to Purchase

When you have found the 3 properties that you like the most have your agents prepare offers for all 3 properties. Start with a very low offer price.

The aim here is not to get your offer accepted but to find the seller that is most motivated. The responses to your offer will show you who that person is.

Make sure your agent prepares a cover letter that goes with your offer, which highlights the point that you are pre-approved for a mortgage and that you are ready to offer a quick close.

Also make sure it mentions that you have made offers on 3 properties and that you will only be buying the one offering the most realistic price.

Expect Counter Offers

Expect your offer to be countered if not outright accepted. The counter offers will show a great deal about the motivation of the sellers.

Have your agent call the listing agent to try to find out more about the sellers motivation and willingness to negotiate.

If none of your offers were accepted prepare another round of 3 offers at slightly higher prices. Make sure that you make it clear to the sellers that you will quickly close on the offer that is first accepted.

This strategy will lead you to purchase one of the 3 best homes you selected at a rock bottom price.

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