How Not to Get Your Heartbroken! Tips for First-time Homebuyers
Purchasing a home for the first time can be intimidating, but it doesn't have to be. With the right guidance and support, you can avoid some major heartbreak and find your Best Lowcountry Home! Read on for my tips to help you get started.
Prepare your finances in advance
Before you purchase a home, you need to pay attention to big purchases and applying for new credit lines. Many buyers know not to go out and buy a car before they are preapproved, but it’s also important to know that your lender will run a credit report right before closing on your home as well. Opening a new line of credit or loan is likely to impact your report, and could even lose you the house. We don’t want that to happen, so save any big ticket purchases until after you have the keys!
Know what you can afford.
It can be frustrating for first time buyers to find and fall in love with homes on the internet that are way out of their price range. Before you even start looking, have a ball-park idea of what you can afford. There are some great online resources like this tool on Nerdwallet to help you estimate your price range.
Don’t forget to save a little extra room in your budget for things like insurance, taxes, utilities, maintenance, lawn care, new appliances, and other unexpected costs.
Get Pre-Qualified
An even better way to get a sense of your budget is to get pre-qualified. In short, this means finding out from a lender what amount you would likely get approved for. It’s based on information you provide and doesn’t require a hard credit inquiry. But remember, this is just an estimate and not a firm number.
A preapproval on the other hand is the first step in a mortgage application. You will work with a specific lender, your financial information will be verified, and you will undergo a credit check. Once you provide a likely amount for a down payment, you will receive a conditional loan offer. A good lender will also help you navigate other loans you may qualify for, including VA, USDA, and FHA loans.
You want to have at least a pre-qualification, if not a pre-approval, in hand before seeing houses! I’ve seen potential buyers lose out because they either weren’t approved in time to make an offer, or they unfortunately didn’t qualify to purchase the home they fell in love with.
Look for your *Almost* Perfect
Oftentimes home buyers are looking for an absolutely perfect home and have a hard time being open minded when seeing properties. We’ve all seen TV shows where the home buyers find a property that matches everything on their list and fits exactly in their budget. Unfortunately, finding “perfect” can be unrealistic in home buying, and you need to be ready to compromise.
Go into the process with a list of 10-15 wants and needs (such as a backyard, open floor plan, school district, neighborhood etc.) and know that you may end up with 8-12 of those. You need to be able to prioritize your “must haves”, and know which items you’d be okay without. Be open minded and flexible, especially regarding cosmetic “flaws” like paint color or flooring. If you are unwilling to be flexible, the home buying process can become very drawn-out and frustrating.
Finally, if someone else buys your “perfect” home before you can even make an offer, don’t stress! There will likely be another opportunity, and it might even be better than the first one.
Trust your realtor to help you find your best Lowcountry home. If you choose the right realtor, they can help you visualize what a space may look like with some renovation, paint, or new furniture. I love seeing what my clients can do with a little imagination. It’s up to you to turn the house you buy into your own perfect home.
Have a thorough home inspection
A good realtor will connect you with the best home inspector and even attend the inspection. This is a CRUCIAL step in the homebuying process. Great inspectors will catch every issue and bring all of the details to your attention. Your agent will fully explain the implications of the findings— this can include getting a price reduction, needed repairs, or other concessions from the seller when warranted. Your realtor will advise you what to ask for and how to negotiate before closing.
Use a trusted realtor and take their advice
If you have questions about any part of the homebuying process, a great realtor knows how to find you answers! Their knowledge of the current market and the area where you are buying is critical to your success when purchasing. The advice we give is based on current facts and with your best interests in mind. But, it’s up to you to put our advice into action. We work incredibly hard to stay informed and up-to-date, so that our clients get the very best experience.
A great realtor has expert knowledge of the area, is on top of communication, is proactive about the progress of your home purchase, and helps you to feel confident and informed about all of the details.
Don’t lose out on your *perfect* by trying to do it all yourself or ignoring good advice!
Find a Realtor who has a good relationship with a Lender.
This is a topic that first-time home buyers often have little experience in. Choosing a lender can be overwhelming and difficult to discern what your best option is. I have learned that clients have a much smoother transition into their new home when they work with a realtor who has great connections with local lenders.
Having a better relationship with a lender will make everything more seamless because you have to be in constant communication. Plus, when you are with a good team, you are more likely to obtain special perks like creative financing with buydown options.
Some of my favorite local lenders to work with are
Ross Holmquist with Benchmark Lending
Paddi Bailey with Gateway Mortgage
Jack Little with Gateway Mortgage
Walt Dagley with Supreme Lending
If you’re ready to make the jump into home ownership, I hope this article was helpful! If you have any questions please drop them in the comments below or reach out to me here. No matter where you are in your home buying or selling process, I am here to help you through every step along the way and help you start living your Best Lowcountry Life.