A “DO AND DON’T” LIST
FOR FIRST-TIME HOME BUYERS
(Orlando,
FL) –
For most people, buying a home is the most significant investment they will
ever make. Today, with an abundance of homes for sale, interest rates at near
historic lows and home prices lower than in the past in many markets across the
country, it may also be the smartest time to buy a home.
While
the prospect of owning a home is an exciting one, it can often times seem
overwhelming, especially for those who are new to the real estate process. With that in mind, Coldwell Banker Residential
Real Estate has come up with a simple “do and don’t” list for first-time
home buyers dreaming of homeownership.
DO:
DO utilize free
online tools to arm you with as much knowledge as possible. For example, the
Coldwell Banker YouTube channel, On Location, offers
consumers a new way to search for and interact with real estate
information and listings. The
channel showcases the power of video to bring real estate more vividly to
life – offering behind-the-scenes looks at towns and neighborhoods, smart
tips and timely news on real estate topics, and video listings of homes
for sale. Additionally, the Coldwell Banker Home Listing Report
offers buyers a way to compare average housing costs in thousands of U.S. and
Canadian markets.
DO take time to
access and closely review your credit score. A sound financial track record and solid
credit score can help lock in a loan and lower interest rates. Checking your records with a fine-tooth
comb in advance will also ensure that you catch any errors ahead of time,
as well as help you better understand how lenders may perceive you.
DO explore
mortgage pre-approval. A pre-approval will let home buyers know
where they fall financially while informing the mortgage company that they
are ready to buy. Additionally, getting this early go-ahead will help others
involved with your purchase know that you are serious about home ownership
– and well-qualified.
DO line up your “all-star”
team of professionals before game day. A team of experienced professionals is
essential to making the home buying process simple and seamless. Start by interviewing and selecting an
agent who you “connect” with. That agent
may also be able to help you identify suitable lawyers, mortgage lenders,
home inspectors and others who play a role in the process.
DO anticipate your
future needs and buy for lifestyle.
Try
to anticipate how long you’ll live in your next home and plan for major
lifestyle changes when possible.
What may make a perfect starter home for a couple might not work as
well when children come into the picture.
Remember, people move for lifestyle reasons and your first home
will likely not be your last.
DO hone in on your
housing priorities. Your ideal home may have a porch, a pool
and five full baths. But before you
start looking, make sure to separate your “must-haves” from your “nice to
haves,” so you know where you can compromise to meet your budget.
DON’T:
DON’T fall in love
with the first house or neighborhood you see. That Victorian
home with the white-picket fence may win your heart at first glance, but don’t
fall in love too fast. You need to
keep an open mind to make sure you find the right fit for all your needs. At the end of your search, it may turn
out that the riverfront ranch that’s closer for your commute is a better
bet all-around.
DON’T buy beyond
what you can afford.
It’s easy to fall into that all-you-can-eat attitude when it comes
to your first home purchase. You
“want it all” when it comes to size, amenities, location, etc. But remember that your eyes may have a
larger appetite than your wallet.
Make sure that the down payment, closing costs, monthly expenses
and taxes are truly within your income and savings range before you
sign on the dotted line.
DON’T treat your
home the way you treat your stock portfolio. It’s unrealistic
and unwise to expect your housing investment to appreciate as quickly as
you’d hope for your high-risk bonds.
Buying for lifestyle, as opposed to trying to turn a quick profit,
will help ensure that you are viewing home purchasing and ownership in the
right context.
DON’T try to time
the market. By the time most consumers sense a major
real estate or financial market shift, the tables have typically already
turned. Instead of waiting for a
slim and unreliable window of time – and potentially missing out on the
perfect home – buyers should focus on their own lifestyles and buy when the time is truly right
for them.
DON’T jump into an
overly tempting or confusing mortgage. When it comes to down payments and mortgages,
if it sounds too good to be true, it probably is. Be sure to read carefully through every
aspect of the proposed agreements to fully understand your end of the
bargain. For instance, what seems
like an attractive rate now may balloon exponentially a few years down the
road.
DON’T
underestimate the value of a trustworthy real estate agent’s on-the-ground
expertise. While being a savvy buyer
and doing one’s homework will help on the road to homeownership, a local
expert with years of negotiating experience is invaluable when it comes to
scouting out the perfect home – and closing the deal.
Coldwell Banker Residential Real
Estate located at 5965 Red Bug Lake Rd. Winter Springs, FL. Marilyn Laboy can
be reached at 407.230.1710 or Marilyn.laboy.cbintouch.com Each Office is
Independently Owned and Operated. Coldwell Banker and the Coldwell Banker
Logo are registered service marks owned by Coldwell Banker Real Estate LLC.