First time home buyers- quick, helpful tips
You’ve been on the home buying journey for awhile and you’ve finally mastered the art of the process and found the home that you’d like to purchase, but how do you make an offer as a first time home buyer? Since you’ve never been through this process before there are several tips and tricks for you to follow to get you on track to buy your first home?
Do Your Research
Even though you’ve been doing research for weeks or months, you’re not quite done just yet. You’ll now need to work closely with your agent to find out as much as you can about the home and the listing that you are interested in to determine if it’s a great fit for you and your family. You should find out how long this home has been on the market? Why was it listed in the first place? How old is it and how many owners have there been? Are there other offers?
Ask your agent to put together a list of sales of comparable homes from the last six months to get an idea of what your offer should look like. Looking at pending sales can help with this as well, because you’ll get a clearer idea of what the current market looks like and what home owners are expecting. You want the most up-to-date information about the current state of the market in order to make an offer that’s in line with other offers that that may currently be out there for the home. While you’re at it, make sure that you understand the terms of this particular sale. You’ll want to know how long inspections will take, how long closing will last, and any other terms that may be a part of this particular sale. Work with your agent to create a plan that includes competitive terms to help you land the home.
Have Your Lender on Speed Dial
At this point in the home buying process you’ve probably talked to your lender more than a hundred times about everything; things won’t change in this department in fact you’ll probably talk to them more during the actual offer process. You’ll want to work with them to be sure you understand any changes in mortgage rates and products, as well as to obtain an updated pre-approval letter. This is because mortgage rates and products can and will change daily, staying updated will allow you to know where you stand and what the next steps for you will be.
Now that you’ve become familiar with the market and how it works, you should be able to go into the offer with the confidence of a buyer that’s been through the process several times. Remember there is not an exact science to making the perfect offer on a home that you’ve fallen in love with. The key is for you to trust your own judgment and the knowledge that you have gained on your journey.
Be Prepared for Anything
Try not to get too attached to one particular home during this stage of the process, in case you’re outbid or your offer gets denied. Keep in mind that it’s not uncommon for a first time home buyer to lose the first bid they make, but that doesn’t mean you should give up it just means that this isn’t the right home right now. There will be other homes to bid on, and who knows the next one may just be a better fit for you and your family.