What To Know As A First Time Buyer
Homeownership is an exciting, crazy and sometimes challenging journey albeit a seasoned homeowner or a first timer. We are breaking down all the deets on what to know as a first-time homebuyer. Here’s our guide to staying up-to-date on the little details.
It’s a totally different world than when our parents were buying homes. Many people still believe you need 20% down to purchase a home and that’s just simply not true. It’s good to save a few grand before embarking on this journey to cover some of the upfront costs. This includes earnest money - a deposit you give when making an offer to show that you are a serious buyer - don’t sweat it, this can be anywhere from $500 - $1000 and you W I L L get it back at closing. You’ll also want some extra cash to cover the cost of an appraisal ($400). This is an assessment of the home in which the appraiser determines the homes value.
BUILD UP CREDIT / PAY OFF DEBT
This doesn’t mean you can’t have some debt, don’t worry about those student loans. Keep a pulse on where your credit is at and build it up by paying down a credit card or paying off some furniture to get your score in a good place. You will work with a lender who will help you get the best interest rate for your home.
DEBUNK THE MISCONCEPTION
Buying can be cheaper than renting. One of the biggest perks of homeownership is building equity, something you cannot do as a renter. The longer you own a home, the more equity you build.
WORKING WITH A REALTOR
It doesn’t cost you anything to work with a Realtor when purchasing a home. The seller and sellers agent cover the cost of your agent's commission.
HOME SEARCH WEBSITES
Realtor.com and Zillow aren't always the best resources for what’s available on the market right now. All active homes are listed on the MLS, which can only be accessed by a Realtor®. Sites like Realtor.com and Zillow pull information from these sites but it is often outdated. If you see a home you love on Zillow, chances are it’s already been sold. To get the most up-to-date information, a Realtor® will set you up on a search on the MLS so you can see listings in real time as they hit the market.
Now that you’ve got the skinny on some of the major 1st time homebuyer misconceptions, remember to continue to ask questions and take your time through the process. At times it can feel overwhelming but utilize your Realtor® as a resource to help guide and explain every step of the process. As always, our team is here to help you find your next place to belong!