What's a First Time Home Buyer to do?

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Judith Sutton ABR CRS IDS PMN ASP IAHSP SRES GREEN

Judy@JudithSutton.com   908 803-0472

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What’s a first-time homebuyer to do?

 

Buying a home today poses certain challenges, especially for first-time homebuyers. But stick with it!! We know that existing homeowners can always leverage their current home for a down payment on another home. First-time buyers have no such luxury. 

There are a few things you can do to have an advantage and make homebuying in today’s market more affordable and less stressful. Here are some of my suggestions:

HOW TO WIN THE HOME BUYING PROCESS:

Get organized at the beginning
Set a (price) limit and stick to it
Don’t consider compromise an ugly word
Check out first-time homebuyer programs
Consider an FHA loan
Consider a loan from Fannie or Freddie
Stay upbeat
 

Get organized at the beginning

While most people take homebuying seriously, winning at being organized can help you win at the closing table. Buying a house is not a casual endeavor and the more you can have everything clarified in advance, the more successful you will be. This means getting your finances in order, holding off on big purchases, and choosing a real estate agent you trust who has experience and who you can engage with effectively. Same with lenders. Do your due diligence. Ask around. I'm confident you’ll hear great things.  Use your trusted advisor for guidance.

Set a (price) limit and stick to it

You have fallen in love with a house and must have it—at any cost. The only problem is your income and your assets won’t allow it. Or even if they do, you’re wandering out of your financial comfort zone where bad things tend to happen. My advice: Set a limit and do not deviate.  Bid against other buyers if you must, but always be prepared to stop when your budget has been exceeded. There will always be another property to love.

Don’t consider compromise an ugly word

While each purchase is unique, it should be said upfront that compromise may be necessary. That is to say, healthy compromise. Many people are waiving contingencies in this market as a means to appease the seller and make their offer more appealing. However, this is probably not where you want to compromise (a home inspection is a perfect example). But there are some things you can probably negotiate on. Give in a little to make the deal work. If you love the house, you may want to choose what is most important to you. You won’t get everything—it’s a negotiation after all—but you’ll doubtlessly get some of what you want, most importantly the home itself.

Check out first-time homebuyer programs

Homeownership is a cornerstone of American life, and many forces are working in your favor to make buying a home easy and affordable! One way to ensure you’re getting the best deal is to explore the many first-time homebuyer grants and programs. Some are for specific communities like those who serve in the military, while others may be targeted to strictly the first-time home buyer.

Consider a loan from Fannie or Freddie

Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs) that set lending guidelines and buy the majority of conventional mortgages throughout the industry, also provide incentives for first-time homebuyers. 

Stay upbeat 

Trust the process, stay positive, and be patient. Things may take a while. So if you miss out on house No.1, let it go and move on. Remember: The homebuying process can be a marathon, even if the current frenzy might make it feel like a sprint through an obstacle course. Concentrate on value and how you’ll feel when finally find THE ONE!

Need help?  I would love to assist and advise in any way I can.  Call me.  I would love to share!

 For the love of a successful investment,

For the love of driving your investment forward,

      COLDWELL BANKER is your trusted guide!

Adding value for my clients and loving where we live!

Judy@JudithSutton.com 

COLDWELL BANKER...GUIDING PEOPLE HOME SINCE 1906 

 908 803-0472
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