First Time Buyer Information

There has never been a better time to be a first-time home buyer!

With interest rates down below 5% and home prices at their lowest in decades, the time to buy is NOW! (Typically either interest rates or home prices will be low, but never both.) As an added incentive the Federal Housing Tax Credit allows first-time home buyers (or those who have not owned a home in three years) to deduct up to $8,000 or 10% of the purchase price (whichever is less) from their 2009 or 2010 taxes. This program has just been extended to allow homes under contract by April 30, 2010 to qualify for the tax credit. The inventory of really good deals is dwindling now that prices are this low.

Most first-time home buyers are ovewhelmed with the prospect of purchasing their first home. They aren't too sure where or how to begin.

I have tried to put many different articles and websites together in order to guide you in the process of home buying. Please check out Buyer's Tips for some good general information. Another page that will be helpful is my Realtor Terms page.

Securing the help of a Realtor who acts as your Buyer's Agent is the best way I know of assuring the process is smooth and your new home is exactly what you want. The Buyer's Agent is obligated to help protect your interests to the best of their ability.

First-time Buyers will often drive around the area, checking out the homes they see for sale. It is also quite common for them to visit new home communities to see model homes. It is important for a Buyer to understand that in both these cases, the Realtor representing the home for sale and the new home community represent the Seller, so are obligated to work in the best interests of the Seller. Your Buyer's Agent will be working in your best interests and will be happy to show these types of properties to you, giving you guidance as to their overall quality and potential for appreciation.

When I work with new clients, my first contact is usually by phone. In that conversation, I will attempt to find out the top five or six items you would like in a home. For example: the number of bedrooms; whether you want a basement and how far you want to commute to work.

Because Lenders vary greatly in their costs and services, I will help educate you so that you feel comfortable interviewing Lenders. There is a wonderful website, Mortgage Professor where you can find lots of information about the lending process. Once you have located a Lender you are comfortable with, we begin the process of looking at houses.

My firm policy is that Buyers tell me what their price ceiling is and I never show property valued at more than that dollar amount. I prefer to bring a Buyer in lower than their optimum price because I believe a person who is "house poor" is more likely to see their home as a noose around their neck rather than a comfortable and inviting environment to come home to. The only time I will go higher in price is when the Buyer has decided they cannot find what they are looking for within their current price parameters and they have chosen to move up in price.

The first meeting is a working meeting. We will see as many houses as time allows which fit your criteria, often stretched out over several towns. You will be given a detailed map along with the information on each home so that you can find it again if you care to do so.

This process is repeated as often as necessary in order for you to feel as though you have found that perfect home. Once we believe we have found it, we will go back a second or third time....just to be sure. By doing this, we greatly reduce the possibility of "Buyer's Remorse," as the first visit is often filled with emotion, while subsequent visits give you a greater opportunity for a realistic evaluation of the property as it pertains to your needs.

Then we go into the negotiation phase of the contract. At that point, you will give me a check called Earnest Money showing "good faith" in your desire to buy the home. This money is held by me until the contract is negotiated successfully, at which time it is deposited with Keller Williams Realty to be held in escrow until the Closing.

In negotiations, the Buyer presents the first Offer. Then, most likely, the Seller will present a Counter-Offer. This will go back and forth as Counter-Offers until a successful agreement has been reached.

Once that agreement has been reached, we have what is called a "Binding Agreement." From the Binding Agreement Date we begin the necessary legwork to make sure the transaction will be completed on time. You will be required to go to the Lender for loan application, usually within the first week.

Also within the first week or so, you will secure a Home Inspection wherein a certified Home Inspector will be hired by you to inspect the home for any defects. I always try to attend the inspection and strongly encourage at least one of the Buyers to be present in order to get a more thorough understanding of your new home.

After that inspection, as the Buyer's Agent, I will present a list of defects which you are requesting the Seller to repair. At this point the Seller's Agent and Buyer's Agent work with their clients to arrive at a mutually-agreeable resolution to the repair list.

Once that is completed we begin the count-down to Closing. During the remaining time frame there are many tasks that both the Buyer and Realtor will complete separately in order to make sure the move goes smoothly.

For you, these will be things like responding to any requests from your Lender in regards to your loan and beginning to get things in order for your move. Here is a Moving Planner which gives a general timeline of what to do.

As your Buyer's Agent, I will be working to make sure all the loose ends are tied up to insure that the Closing is going to be held on time. Some of these are: checking on the repairs from the Inspection Amendment; making sure the Survey is clear and done in a timely manner; speaking with the Lender and Closing Attorney to make sure things are going smoothly; and, keeping in constant contact with you, the Buyer, and the Seller's Agent.

A few days before the Closing you will receive what is called a "HUD-1," which is a federally-mandated form showing you exactly what your expenses will be and how much money you will need to bring to the Closing. Both your Lender and I will be happy to go over this form with you to insure that all your questions are answered.

Just prior to the Closing we will complete what is called a "Walk Thru" wherein we inspect the home to make sure the necessary repairs have been completed and the home is in good shape.

From there we proceed to the Closing Attorney's office to complete the Closing where you can finally call yourself a Homeowner!

I hope this information has been helpful. It is not meant to be exhaustive, but as a general overview to help familiarize you with the home-buying process.

If I can be of any further assistance, don't hesitate to call or email me!