Today, we have Jessica, Real Estate Agent spilling the tea on buying your first home, picking the right one, and saving $$$ along the way!
What is the biggest misconception that people have when buying a house?
The biggest one is that you need $30,000+ dollars to use as a down-payment. There are so many loans with zero money-down that you can take advantage of!
We can help you find first time buyer loans and Veteran loans, neither one require a down-payment. Some loans such as FHA and Conventional can require as little as 3% of the purchase price down , so it simply depends on what works best for you.
How do you know what price range to shop in?
What advice do you have for first time buyers?
- You are going to insult the sellers. You are essentially asking for $26,000 right off of the top of their sales price (-$20,000 for the home; -$6,000 for closing costs). Would you want to work with someone who has just basically said that your house isn’t worth your asking price?
- They will counter offer at the full asking price.
- They will decline your offer and refuse to speak with you.
What is the biggest mistake you see, but try to help with, when buying?
What are some costs that many buyers forgot to consider when buying?
- Earnest Money: Typically $500, this is a good faith deposit that shows the seller that you’re serious about buying the home and removes it from the market. The $500 will be deducted off of your purchase price once the sale is completed.
- Home Inspection: A home inspection will give you a better overview of the homes history, the condition of the roof, HVAC unit, foundation, and much more. The inspection ensures that you are not purchasing a home with foundation issues or other expensive and serious repairs required. Home inspections are also fantastic negotiating tools! I always return to the sellers with a list of repairs that are important to my buyers and either have them fixed (at no additional cost to the buyer), or the price of the house reduced accordingly.
- Closing Costs: These are the “cost of doing business” fees associated with your mortgage company, and title company. They include some of your city/county property taxes for the year, title searches, credit reports, and more. Closing costs vary depending on the purchase price of the home, but we usually see them hovering around $6,000. As a realtor this is one of the first things that we negotiate that the seller pays these costs for the buyer, which is another great reason to have a realtor on your side!
Why should somebody work with a realtor?
Who is responsible for paying for a realtor?
Do you advise a home inspection?
What are some ways that a first time buyer could save $$$?
- Be realistic about your budget: Get pre-approved before you begin your search, so you know exactly how much you can comfortably afford. Don’t look at homes above your comfortable budget UNLESS you are willing to pay for it. Otherwise, you will be setting yourself up for disappointment.
- Find a home in the right neighborhood for you. Pick your neighborhood, and pick your location INSIDE that neighborhood carefully. Those factors can NEVER change. Paint colors, flooring, and kitchen counters CAN change, though!
- Ask your realtor to check the resale value of a home: You might find a 100k home in a 160k neighborhood that just needs a little updating!
- Try and qualify for a THDA or USDA Rural Development loan: These are offered by many lenders and require $0 down! With certain programs, if you take an 8 hour homebuyers class, they will give you free money towards your down payment or closing costs!
- Keep in mind the area of town you are living in: For example: Some parts of the city may offer lower tax rates, but their utility companies charge higher rates!
- Watch those taxes: Property taxes play a HUGE part in your monthly payment! Example: A $135k house with $800 in property taxes typically has the same monthly payment as a $120k home with $1,700 in property taxes.
- Homeowners Insurance: Be sure to get a quote for homeowners property insurance on any property you are seriously considering buying.
I want to see a house. Do I call the phone number on the for-sale sign?
When is the best time to buy?
properties. She has built a strong career helping people achieve their dreams of home-ownership, and saving them thousands of dollars along the way.