First Time Home Buyer Tips

One of the great things about being a first time home buyer is that there are many who have come before you and their trials and tribulations help guide the path to buying your first home. Follow these guidelines to make buying your first home simple and successful.

1. Know Your Credit: Unless you have been saving since grade school for your first home, you probably don't have enough cash handy to buy your first home outright, which means you will need to qualify for a mortgage. Your credit will be a major deciding factor in what type of mortgage you qualify, if any at all. According to Rod Griffin, director of Public Education at Experian, in a recent article on AOL Real Estate, new home buyers should check their credit three to six months before applying for a mortgage. Getting your report in advance gives you time to pay down debts, fix any reporting errors and begin action towards any credit repairs that me be necessary. 
2. Gauge Your Down Payment and Start Saving: This amount will largely depend on the type of loan that you qualify for and the cost of the home that your purchase. Larger down payments often reduce or negate PMI and they also lower the total interest that you will pay over the life your mortgage loan. However, many loan programs offer down payment options at less than 5%. Start meeting with lenders to find out what you qualify for and then begin to investigate how you will cover your down payment.
3. Find a Realtor: You can hunt for houses without a realtor; however, in most cases you're going to be working with a realtor because the house seller will be represented by one. Choosing a buyer's agent allows you to have someone searching for houses in your price range and location, filing the necessary paperwork when you make offers and providing you with in-depth market information about the area that intend to buy in.  
4. Choose the Right House: Obviously "right" is a strange word because when it comes to homes, there are a lot that can seem "right." Ultimately finding the "right" home means figuring out what you want and then choosing a house that meets all of most of your needs. It's also important to make sure the home is priced appropriately for the area and features, in addition to knowing if it's within your price range.
5. Make an Offer: Work with your realtor to find out if the home is a value or if you should offer less. Home prices are the perceived value by the seller and often have more to do with their desired selling price than the worth of the home in the current market. Don't be afraid to make an offer, it's just a starting point.
6. Take Your Time: Buying your first home is exciting and after a few months it can start to get frustrating, but don't make rush decisions. View a lot of properties and consider where you're finding the greatest value that meet your needs. 

If you're a first time home buyer in East Lansing or the Greater Lansing areas of Michigan, feel free to contact me at MyRealtorRob. As a realtor in East Lansing for more than 7 years, I can help you find your new home or simply get an idea of homes currently for sale in your desired area. 

The Home Warranty Wars

If you're buying or selling a home, you may be hearing the term home warranty getting tossed about. Home warranties are contracts through a third party company to cover unforeseen repairs after a home's sale. Home warranties are not confined to home sales. Many real estate investors and vacation property owners purchase home warranties for a range of home repairs so that they don't have to be concerned with hiring someone themselves.

If you're a home buyer, a home warranty gives you a bit of peace knowing that a faulty dishwasher or ailing furnace will be taken care of under your home warranty. However, home warranties may apply to an assortment of repairs, but coverage depends on the home warranty purchased. Generally speaking, less expensive home warranties will cover fewer repairs, but some easy online research can inform you of home warranty companies in your area and what services they offer.

If you're a home seller, a home warranty can sweeten the deal for your potential buyer and make them more confidant moving forward with a sale. Home warranties are often purchased by the seller as a small insurance policy on appliances and other mechanical systems in their home. However, buyers also have the option of purchasing a home warranties and in some cases, your Realtor will purchase the home warranty.

For instance, I recently split the cost of a home warranty with another broker to keep the closing process moving smoothly along. For a few hundred dollars, a home warranty can greatly alleviate a buyer's worries moving into a new home. Thus it's to the benefit of the seller, myself as the Realtor and any other parties involved to invest in a home warranty and insure that any unexpected replacements are paid for in advance. At times, the "who pays for the home warranty," dilemma can get a bit heated, but it's genuinely a minor issue that should can be resolved quickly and inexpensively.

If you would like to know more about home warranties, are thinking of buying or selling your home or have other real estate related questions, visit me at MyRealtorRob. As an East Lansing Realtor, I specialiaze in the sale and purchase of property in the East Lansing and Greater Lansing areas of Michigan.