First Time Buyer
As a first time buyer, being completely overwhelmed is the universal first step. If that’s how you’re feeling about home buying, don’t worry! You are right on track. When our team begins working with a client, our objective it to make sure you move from confused to confident. We spend at least 2 full hours educating you on every step of the process as well as our current market conditions. If you’re not quite ready to schedule an appointment yet, here is a crash course on getting started.
“The ache for home lives in all of us, the safe place where we can go as we are and not be questioned.” — Maya Angelou
Your Lender
The very first step in your home buying process should be meeting with a local lender to get pre-qualified or pre-approved. Pre-qualification is a more informal assessment of your debt, income, and credit. A pre-approval requires you to share much more personal and financial information. As a result, pre-approvals carry more weight and validity when your REALTOR® presents them with an offer than pre-qualifications. When you are competing in multiple-offer scenarios as a first time buyer, take advantage of anything that improves your offer.
Always get your REALTOR®’s lender recommendations. They work closely with lenders and will know who does an excellent job. There is nothing wrong with shopping multiple lenders. In general, I recommend clients shop 2-3 lenders and let each know they are looking around. You don’t need to commit to anyone until after you are under contract. When comparing quotes, pay very close attention to all of the additional fees, closing costs, and monthly payments. These are more telling that simply an “interest rate". Usually companies who have lower interest rates are charging you other fees that more than make up the difference.
Lenders are happy to discuss your budget and getting prepared to buy any time, but pre-approvals only last for 90 days. So, there is no need to fully go through the process until you are within 6 weeks of actively searching for homes. A first time buyer can greatly benefit from starting the conversation with their lender as soon as possible. Your lender will help make sure you have have your finances ready when the time comes!
Lending Myth: It’s best to use your current bank.
FALSE. Most loans are sold within a year after you close on your home. You shouldn’t factor in wanting to have all of your financing with your current or preferred bank for convenience. They will likely sell the loan and you will be paying a different company. Furthermore, unless you have a complicated financial situation, a personal relationship with a bank likely won’t hurt or help your approval. Competency, availability, the quotes, and professionalism should be your main factors when deciding on which lender to use.
REALTOR®
Finding the right agent for you is absolutely essential. As a first time buyer, you’re going to need a LOT of education and help. I absolutely adore my clients, but I am the first to say that my team wouldn’t be the perfect match for everyone. That is OKAY. I would much rather you feel in alignment with your agent than work with someone that isn’t the right fit. If you are looking for someone who is going to answer the phone at all times, regardless of time of day, we aren’t your girls. If you are looking for an agent who will bully others on your behalf, not us either. Get really clear on your expectations and know that there is definitely a REALTOR® in our market for you. Here are the things I would personally be looking for in a REALTOR®
Experience
Strong relationships with other REALTORS®
Commitment to client education
Happy to work with first time buyer
Transparency
Ethics
Empathy
Healthy Boundaries
Loves what they do!
Makes you feel taken care of
Highly communicative
Strong Negotiation Skills
To learn more about being a first time buyer, check out our article: The Home Buying Timeline
Ready to book an appointment? Fill out the Contact Form. We can help you find a great REALTOR in any area of the US.
