First time home buyers should realize that real estate is a long-term investment. And, a sure way to build wealth and enjoy the tax advantages of home ownership. Renting offers little financial advantages, but provides a peace of mind and worry free living. Plus, renting provides the landlord with tax and equity advantages that you should benefit from as a buyer.
Now, is the time for first time home buyers should seriously think about investing in a home. First time home buyers will take advantage of the below market interest rates and other government down payment assistance programs. The current market has seen a rise in home prices due to the lack of inventory – seller’s market. In a few years, the property you purchase today will be worth more in the future.
The first step in the home buying process is to contact a mortgage lender to determine your buying power. A Realtor can refer you to a lender in your local area. A mortgage lender will check your credit report, verify employment and income and provide you with a pre-approval letter for the purchase. The lender will also provide an estimate of your down payment, monthly investment expense and closing cost for the sale. The final step is that your lender will tell you about your buying power. And, order an appraisal on the property to determine the fair market value.
The next step in the process is to find a Realtor to represent you as a buyer’s agent. You can obtain a referral for a Realtor in your local area from searches on the internet, a family member, co-worker or other associates. After you have found a reliable and trustworthy Realtor you may be required to sign a Buyer’s Agreement spelling out the terms, conditions and amount of your buyer’s agent commission. Usually, the seller will pay the entire real estate commission!
A professional Realtor will search the multiple listing data base and send you property listings via email about properties that meet your specific price range, location and criteria. The Realtor will advise you on the fine features of each home, school district, and location that might meet your lifestyle and family needs. The Realtor should also prepare a Comparative Market Analysis (CMA) to help you decide what sales price to offer. And, finally your Realtor will help write a competitive offer and negotiate the offer on your behalf.
After the offer is accepted by the seller your Realtor will schedule a home inspection to determine the condition of the home. The Realtor will work with you to list any repairs that may come up during the home inspection and resolve any issues. In addition, the Realtor will recommend a reputable title company/attorney who will research the deed and issue title insurance to protect your interest and ensure a free and clear title. Contact us today for a no-obligation appointment to discuss your home purchase!