How to Buy Your First Home and Other Perils of 2023 (Part 2)
As the scorching sun blazes overhead, I find myself scrolling through endless photos of friends and family basking in cool mountain streams or the refreshing embrace of the Pacific Ocean. How am I keeping cool, you ask? Well, I'm seeking solace in early morning walks, cool nighttime breezes, the comforting hum of air conditioners, and the occasional refreshing splash in a pool. What about you?
In the world of real estate, both local professionals and national experts echo a single chorus: "It's a buyer's market!" In this intriguing environment, I thought it fitting to continue our journey through the eight-step process of buying your first home.
In my last post, we navigated through the first four steps. If you missed it, you can read it here.
Step 5: Upfront Payment—The Down Payment
Most lenders will require a down payment. There are some exceptions where 'no money down' loan packages exist, but they're like unicorns—rare and often accompanied by a PMI—Private Mortgage Insurance. You should understand how this would affect your monthly payment. Remember, a higher down payment generally translates to lower monthly payments.
Step 6: Be Honest—Especially to Yourself
Now, I'm not insinuating that you should lie on your loan application (far from it!). This step is all about self-honesty. It's essential to ask yourself, "Can I truly afford this house I've been dreaming about? Should I hold off on buying other things if I want to purchase a home?" Sure, homeownership has its tax benefits and long-term wealth accumulation, but perhaps it's more prudent to consider a smaller house or wait until you've paid off more debt or saved a larger down payment.
Step 7: Find the Right Realtor—Your Trusted Guide
Selecting the right realtor is not about serving the realtor's interest—it's about safeguarding your interests. We've all heard those real estate horror stories that rival tales about lawyers and congressmen. Don't let yourself become a cautionary tale. Conduct thorough due diligence—interview several reputable agents before choosing one. I have helped hundreds of people purchase their home, and come highly recommended by my clients. I would love to connect with you and guide you on your home buying journey.
Step 8: Inspection Before the Decision
Remember the frantic home buying period of 2020 and 2021? Some eager buyers skipped a critical step—the home inspection. Big mistake. Always remember, every house—new or old—has its quirks and flaws. Now is the time you want a professional Realtor representing you. Negotiations can be rigorous and emotionally charged. Getting to yes is what you want IF you still desire the house.
Following the resolution of the repair addendum, the rest of the home buying experience is straightforward. Plan on daily emails from your lender and Realtor. They are your team taking you to the finish line. Also expect communication from the Title company assigned to handle the sale. They exist to protect both you and the seller.
It may take longer than any of us like, but it will get done.
Meanwhile, do not buy anything – ANYTHING – except the normal basics. Look for window coverings – don’t buy them. Find paint colors – collect them for now. Wait to buy anything until after closing. Trust me now, thank me later.
Until my next post, stay cool in this blazing heat and let me know how I can serve you!