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. 

Home Buyer's Guide

The Perfect Home: That elusive enigma that haunts your dreams and waking life, taunting you to make difficult decisions like three car garage versus a big backyard. When you're house shopping, you're basically life shopping. We spend a lot of time in our homes and choosing the right one is akin to following the sunny path filled with flowers or the shadowy path thick with brambles. Thus, it's unbelievably important to follow some basic rules when it's time to buy a new home.

1.  Finger off the Trigger: What does this seemingly irrelevant tip mean? It means slow down, be patient; this is a time consuming process that generally takes months and sometimes years, so know ahead of time that perseverance pays off. Waiting means you have time to find what you want, secure optimal financing, get the proper inspections and make it to closing with all of your hair intact.

2.  Create a Method for the Madness: This is also known as your game plan. Start with your finances. What is your credit score? Your debt to income ratio? Your monthly expenses versus monthly income? Drive around and discover which areas you might like to live in and which ones are a "no way." Decide which amenities you have to have and which ones can be relegated to the slush pile. Talk with your spouse and your family and find out exactly what everyone needs and wants in their new home.

3.  Call in Reinforcements: This is your Realtor. He or she is the person who knows locations, demographics, financing options, sellers, market values and all of those really important details that you don't want to spend the time and energy learning yourself. Ask your friends and family for referrals if they've worked with a great buyer's agent. Most sellers have a real estate agent, so secure a buyer's agent to protect your interests.

4.  Pull out Your Fine Tooth Comb: Once you've started going to open houses and visiting homes with your Realtor, it's time to narrow down what you want exactly. Look at each house closely and factor in everything, not just whether the yard is nicely landscaped. Are there enough bathrooms? Is the driveway too steep? Is the price $50,000 higher than every other house on the block? You can't ask enough questions when it's time to buy a home. You will probably be staying a while, so shake the skeletons out of the closet early.

5.  Start Talking Money: You have discovered the ideal home, now it's time to make an offer. Your Realtor is very important here because they deal with all of that pesky paperwork. You simply stop by their office and sign the appropriate forms after discussing how much you want to offer. They present the offer to the seller or the seller's agent and you wait for a counter or accepted offer - pretty simple.

6.  Beg the Banks: Well hopefully there is no begging involved, but this is the part where you secure your financing. This involves contacting a variety of lenders to find out which mortgages they offer and what they charge for interest rates and closing costs. Once you find the most suitable option you begin the application process. There are other options here including buying the home with cash or on a land contract if the seller offers creative financing.

7.  Close the Deal: Again, your Realtor is the go-to guy here. He or she will prepare you for the closing, draw up the necessary paperwork and ensure that everything is in order for a successful closing.

8.  Make the Move: Hire a moving company, throw your stuff into trash bags, whatever your personal moving style happens to be. Hopefully you've already started packing and have a garage stacked with tidy cardboard boxes labeled delicate and house wares. If not, don't worry, moving is exhausting, but it's not life threatening. Again your realtor can come in handy here. They know good moving companies and can pass along recommendations.

If you're thinking of buying a home in East Lansing or Greater Lansing, please get in touch with me at MyRealtorRob. In addition to helping you find the perfect home, I am more than happy to recommend lenders, moving companies and a variety of other experts who can assist you in the home purchasing process.