First Time Home Buyer

by Mario Acosta on January 15, 2013

in Buyers, First-Time Home Buyers, Local Topics

First Time Home Buyer Tips

Hi everybody hope you are staying warm through this cold snap.

I have been talking recently to Sherman Oaks owners about what to do if they are considering selling, or how to improve the house they are in.

This is for ALL of you in a home, but especially for those of you out there thinking of buying your first home, it can be a tremendous undertaking. I have helped so many young couples through the maze of finding, qualifying and purchasing their first home. There are basic steps that can prepare you if you are ready to take such a big step.

So, for a few blogs I want to talk about what first-time home buyers need to know.

Like many Sherman Oaks home buyers right now, many first-time home buyers are considering buying their first home because they know that it’s a great time to take advantage of record low interest rates and historically value based sales prices.

Like I mentioned in earlier blogs, I am often asked for the secret for selling a home. I am just as likely to be asked how to go about buying a home.

Well, there are a few steps I feel every prospective buyer should know (especially if it’s your first home purchase). So here are the first of several of steps.

Start by lining up the money.

Seems obvious but you need to get all of the financial details out of the way up front. Meet with a licensed loan mortgage agent. They can help you know your credit score and what you can afford. They can show you what down payment and rate will work for you. Don’t just talk to one, shop around. Ask around, I will bet your friends and family know a few. If you ask a professional real estate agent you know and trust they will know a handful as well. Talk to at least three loan mortgage agents.
Don’t allow all of them to pull your credit; this can hurt you. Get rates and closing costs from them. They will differ, from one agent to another, and between institutions and credit unions.

Closing costs are the fees you pay to the lender/bank. These costs can sometimes be paid for by the seller – unless you are buying a short sale – then it may all fall to you. Compare different rates and then go back to the person you are most compatible with and let them know about the best rate you found. Tell them they should be able to meet it or beat it. Go with a payment you are comfortable with — not necessarily the one you have been told you can go up to. Remember that almost everyone involved is commission based and the more you spend the more they make. So stay in control and know what you are comfortable with and stick to it. Don’t get up-sold.

Next find a real estate agent. Find someone you like and are comfortable working with through the process. Find someone who will listen to you and will advocate for you. A good agent is ultimately paid for by the seller but it still comes out of the deal. A good agent more than pays for themselves through the money they can save you, and the price they can help you negotiate. A great agent can do so much more.

A qualified licensed real estate agent can guide you, get you lists of homes that meet your specific dream home and most importantly for a first time buyer they can help you understand and fill out all of the forms. Just as important, deal with scheduling, assess the market and values, scour your target neighborhoods, and make you feel comfortable during the buying process.

Interview your agent. Find out how long they have been in the business, if they are full time, and if they have any references. Again, go with whom you are most comfortable — you’ll appreciate this after looking at so many houses. Oh yes, look at a lot of houses, but narrow it down. The agent can help you do this.

Come back next week for more tips, and I will walk you through the rest of the process.

Stay warm and have a great week!

Sherman Oaks Home Search Sherman Oaks Home Values

Post by Mario Acosta

Mario has written 117 articles.

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