3 Essential Tips to Buying Your First Home

Many home buyers are often curious about “how” to start the home buying process. Often asking questions like “what’s the first step?” or “what’s the process?” Many buyers aren’t aware of the opportunities available to them such as first-time buyer programs, occupational-based mortgage loan products, and even neighborhood or community based loan programs. In an effort to help home buyers all over, we are providing three essential tips you need to know before buying your first home. Read on to make sure your home buying process is simplified, here are three essential tips every buyer should know before buying their first home.

1. Establish a Relationship with an Experienced Loan Officer - your Mortgage Professional will be the lifeline of your real estate transaction. Home buyers sometimes forget that their most pressing questions are often related to the financing of the home. Unless you are paying cash for your home, financing is the single most important part of the home buying process - it’s how you fund the purchase of the home. Having financing in place ensures that you have the financial means and the financial capacity to buy a home. This is a critical step in the home buying process and it cannot be overlooked. Choosing the right mortgage lender can be more complex than simply filling out an online mortgage application. What first time buyers don’t realize is that many states have statewide or city wide home buyer programs that cater to buyers based on income, occupation and even geographic area. Many times local Mortgage Loan Officers have to take specialized training in order to have access to these programs. Additionally, some Mortgage Loan Officers have specialized training in different types of loans. For example, you may have noticed some mortgage professionals brand themselves as the “VA Specialist”. Oftentimes, experienced mortgage professionals have taken the time to focus on a particular niche which offers the borrower better loan options when selecting the right mortgage. I often see buyers having pretty specific questions about which programs are available and how to qualify. An experienced mortgage officer will act as a guide and inform the borrower based on the best home loan opportunities. Expect your mortgage officer to offer a “Renter vs. Buyer Analysis”, talk to you about debt-to-income ratios, share with you the tips on how to achieve a desirable monthly payment. As a buyer, be very honest and open with your mortgage professional. Let your mortgage professional know about any concerns you have regarding student loan debt, increasing your credit score, or unpaid medical bills. An experienced mortgage professional will lead you in the right direction which can save thousands of dollars spent on credit repair and paying off old debt.

Here are common questions many buyers should discuss with their mortgage professional:

• How much do I need for closing costs?
• How much do I need for down payment?
• Do I qualify for any home buyer programs in my state, city, or local area? And what are the requirements of the program?
• What are the interest rates?
• How much will my monthly mortgage payment be?
• How can I reduce my future monthly mortgage payments?

2. Work with a Real Estate Professional that you Trust - as you go through the home buying process you will want to work with a real estate professional that you can trust.   For some buyers, the ambiguity of the home buying process can be stressful. Today’s buyers find themselves doing tons of research about the home buying process and often have many questions and concerns on what to expect. Therefore, buyers need to make sure they choose a real estate professional that they can count on to answer questions. Further, buyers should choose an agent they can depend on to negotiate on their behalf and submit timely offers, an agent that is available to tour/show properties, proficient in evaluating market trends, and capable of understanding their home buying needs and goals. Buyers need to understand that their real estate professional will most likely serve as their confidant, advocate, advisor, and even home shopping partner. So, it’s imperative to choose a real estate professional with whom you feel comfortable. Generally, most buyer’s appreciate having a reliable resource, like a real estate agent available when needed. In some circumstances, buyer’s may even need to disclose their financial situation with their REALTOR? in hopes of being connected to an experienced mortgage professional, tax professional, or financial advisor.  As a buyer, choosing a credible real estate professional will be an essential factor in ensuring you have an uncomplicated experience. 

Here are some helpful attributes with descriptions that buyers should seek in their real estate professional:

• Competency: Agent explains the process clearly, ensures paperwork is correct, uses technology efficiently, negotiates effectively, exhibits attention to detail, represents and protects client’s interests.
• Market Knowledge: Agent exhibits knowledge of the real estate market, the neighborhood and community.
• Communication: Agent updates client’s regularly, responds in a timely manner, and communicates with client’s in a way the client prefers. 
• Customer Experience: Agent understood client’s needs, gave client personal attention, made client feel valued as a client, was on time and prompt. As a client, I would recommend this REALTOR? to a friend or colleague.

3. Learn the Neighborhoods and Market Information - many buyers struggle with deciding “where to buy a home?” especially in the Houston Metro area primarily because the neighborhoods are so diverse. Undoubtedly, buyers may not be aware of all the resources available to assist with making the home selection process simpler. Buyers may be surprised to learn that with a little research and a knowledgeable real estate agent buyers can explore many different neighborhoods in Houston and learn about the latest market trends. One of the key benefits of working with a local real estate professional is the access to neighborhood information and real estate data you may receive for different neighborhoods and geographical areas. In fact, there are several reports that you can receive from your real estate agent like MarketInsight, Comparative Market Analysis, access to Premium Content, and the Portal. Thoroughly reviewing all these resources with a seasoned real estate professional can relieve a lot of fear and stress of choosing the wrong neighborhood. 

Buying your first home can seem scary, stressful and even unpredictable but having the support of a well-informed Mortgage Officer, Real Estate Professional, and knowledge base are essential resources that’ll simplify your experience. 

Contact information Ramonica Caldwell for information on buying, selling or investing.