I thoroughly enjoy helping first-time buyers achieve their dream of home ownership.
The home-buying process is often bewildering for those buyers, but I’ve learned many ways to guide my clients to a smooth closing.
Here are a few tips for first-time buyers.
Check Your Current Rental Agreement
If you’re renting, you need to be certain that you can terminate your present rental agreement with a 30-day notice.
If you have a lease, you’re obligated for the payments until the end of the lease.
You don’t want to buy a home with a closing date that falls before your lease termination date unless you’re willing to continue paying rent along with your new house payment.
And, you shouldn’t give your landlord 30 days’ notice until you’re certain you have a closable deal on the home you’re purchasing.
That means having fully-approved financing, inspection issues resolved, and a satisfactory appraisal of the home you’re buying.
There’s absolutely no point in seriously shopping for a home until you are pre-approved financing.
Every buyer I meet assures me they can get a loan, but you’d be amazed how many learn there’s more to getting their loan approved than they realize.
You need to understand the details of your financing, including the down payment, closing costs, interest rate, and numerous other financial considerations before you start looking at homes.
Failing to do so will likely set you up for some disappointments later.
There are many types of lenders who will all tell you how great they are, but there are often significant differences in costs and service.
I can help you find the best lender for your specific situation, so call me at772.370.8631 for guidance on getting pre-approved before you start shopping for a lender.
Don’t Change Your Financial Position
Lenders are really, really sensitive about borrowers who change their financial position during escrow.
That means you shouldn’t go out and buy new furniture for your new home and finance it.
If you do, it will alter your debt to income ratio and possibly cause you to not qualify for your financing.
The same thing applies to other major purchases.
I have seen many buyers lose their ability to get a mortgage due to an automobile purchase, new credit card or line of credit at say a furniture store.
I have also had a couple of people change jobs right before closing and almost lose their financing, even though their new job was a better job with higher pay (their loans had to be re-underwritten at the last minute).
You should also be prepared to document the source of any extra money you receive during escrow.
That’s because lenders want to know that your down payment is coming from you; not some other unknown source.
Work With A Realtor® To Find The Right Home
Yeah, I know ~ this sounds self-serving, but it’s good advice. You don’t have to work with me, but you do need to find a competent, experienced Realtor® to guide you through the home-buying process.
Contrary to popular belief, most buyers can’t find the right home online.
The internet is a great starting point, but there are countless details that you won’t find on the major real estate portals. Details like neighborhood quality, builder reputation, details of comparable sales (not just the prices), market trends, etc.
In fact, most of the popular real estate sites are loaded with inaccurate, misleading information that the public thinks is accurate.
Those sites can’t tell you the value of a given home because they determine estimated values with a computer algorithm.
Their computers haven’t seen the neighborhood or the inside of the home you think you like on their site.
Need some help with buying your first home?
I love helping first-time buyers navigate the home-buying process!
Atlantic Shores Realty is ready to assist you with all your real estate needs. Our website has information whether you are selling a home on the Treasure Coast or Palm Beaches or buying a home on the Treasure Coast or Palm Beaches.
"I never got to thank you for all your help in purchasing... It is a beautiful home and with some TLC, it will be even more beautiful.
I have to add how invaluable David (Colson) has been throughout the process and continues to add his assistance. After ending my relationship with 2 other agents prior to hiring David, I hit pay dirt with him. You are very fortunate to have him working with you. I will strongly recommend any of my friends and family to utilize David (Colson) if they are interested in buying a home in the area.
Thanks again for all your assistance.