First Time Home Buyers
KTIV.com reports that the Iowa Association of Realtors drafted a plan to make the home buying process more affordable for first time home buyers.
“The savings program they are suggesting, allows individuals to deposit an annual $2,000 into a savings account. Couples can save up to $4,000 annually for up to ten years in the tax-exempt savings account with help from their parents or grandparents.
“Realtors say it would add 3,300 statewide home buyers each year and inject about $6.2 million into the state economy, all while giving young home buyers that much-needed boost.”
We want to make the home buying process easier. Here are 10 tips for first time home buyers.
- Before house hunting, first time home buyers should get pre-qualified – talk to different lenders and see not only who offers the best rates and terms, but also manageable fees and costs. Lender fees can vary quite a bit from one to the next. The mortgage industry has three main types of lenders: big banks and credit unions, mortgage bankers and mortgage brokers.
- The big banks and credit unions have checking and savings accounts and car loans and home loans and just about anything you might need for your financial needs.
- Mortgage bankers focus on home loans and they use their funds to make loans. Mortgage brokers contract with banks, mortgage bankers and private lenders to arrange for home loans.
- Pre-qualification gives you great information about how much house you can afford and allows you to move quickly if you find the right house. Pre-qualified is not the same as pre-approved. With pre-approval, you will receive a conditional commitment in writing for an exact loan amount, allowing you to look for a home at or below that price level. Obviously, this puts you at an advantage when dealing with a potential seller, as he or she will know you’re one step closer to obtaining an actual mortgage.
- Get professional help – First time home buyers need a realtor you can trust. Yes, you have unprecedented internet access to sellers’ information, but a realtor has years of experience that can help you with everything from the area, the appraising of a dwelling, the paperwork, the comparisons, and negotiation on price. If you need help finding a qualified agent, Harmony Property Solutions, LLC knows many agents we can refer you to for your first home purchase.
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As first time home buyers, did you check out the schools?
What is the reputation? Can the kids walk to school? Is there an alternative school available, like a charter school or parochial school if the public school doesn’t work out?
- Walk the neighborhood – Look at the houses in the neighborhood. Are the homes well maintained? Are the lawns mowed and edged? Where are cars parked? Talk with your neighbors. Are they friendly? Do they have kids? Do they have anything good or bad to say about your house of interest?
- Make an Offer – Your real estate agent will help you decide how much money you want to offer for the house along with any conditions you want to ask for, like having the buyer pay for your closing costs. Your agent will then present the offer to the seller’s agent; the seller will either reject, accept your offer, or issue a counter-offer. You can then accept, or continue to go back and forth until you either reach a deal or decide to call it quits. If you reach an agreement, you’ll make a good-faith deposit and the process then transitions into escrow. Escrow is a short period (often about 30 days) where the seller takes the house off the market with the contractual expectation that you will buy the house – provided you don’t find any serious problems with it when you inspect it.
- Always hire a home inspector – First time home buyers should hire your home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.”
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Beware of sleeper costs
Comparing the monthly mortgage payments to paying rent is only part of the story. The bank may require property taxes and insurance to be part of the monthly mortgage payment. Then there’s the unexpected. When a couple I know first moved into their house, the front, cement porch collapsed costing them $1.500 to repair.
- First time home buyers remember to perform regular maintenance – With the amount of money you’re putting into your home, you’ll want to make sure to take excellent care of it. Regular maintenance can decrease your repair costs and allows you to fix problems when they are small and manageable.
- Only a fool signs papers without reading them. Read the papers. Make sure you understand your obligations. If you feel insecure, hire a real estate attorney. A house is the biggest purchase you may ever make. Do it the right way.
Harmony Property Solutions, LLC is here to help homeowners out of any kind of distressed situation.
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. Just the simple honest truth about your home and how we can help you sell it fast to resolve any situation.
Harmony Property Solutions, LLC is part of a nationwide group of thousands of investors. We are helping tens of thousands of homeowners every year. We may not be the “traditional” route, but we CAN help and we can do it quickly!
Give us a call today at 319-343-6773 to let us know how YOU need help.