First Time Home Buyers Guide
Real Estate Investing Information
Please bookmark this First Time Home Buyers Guide and Real Estate Investing Information FAQ to find answers to common questions potential home owners have.
1. Why is buying a home better than renting one? Many people have wondered whether buying really is better than renting. Because after all, there are those pesky things called repairs like actor Chevy Chase battled in the movie, The Money Pit. In this first time home buyers guide, you'll find a few reasons why people buy a home instead of renting:
- A place to live - One of the basic human needs!
- Tax benefits - Who doesn't need these?
- Stable housing costs - No one raising your rent every year.
- A feeling of permanence - A chance to grow some roots.
- An investment in land and the structure - History tells us that over time, the house will increase in value.
- You'll love having a place that's all yours, a home where you can express yourself completely.
2. What's the most important consideration in choosing a home?Location is hugely important. Refer to this first time home buyers guide so you remember to plan for things like good schools and shopping. In today's market, you want to look for a community that's strong and stable. As your realtor in the Sacramento area - including Folsom, El Dorado Hills, and Cameron Park - I can help you find a neighborhood that fits your criteria.
3. What about insurance?As a first time home buyer you'll need to get homeowner's insurance. Unlike renter's insurance, this type of insurance protects your home and valuable contents from fire and theft. Depending where you live, flood and earthquake insurance might also be required. As your Sacramento RealtorŪ, I'll help you get the policy to the escrow company as required. In addition, many first time home buyers will need Private Mortgage Insurance (PMI). This insurance gives lenders a guaranty in case a borrower defaults.
4. How do I choose the right loan? Choosing a first time home buyers loan can be overwhelming because there are so many options. You won't have to venture into the world of loans on your own - unless you really want to. I can give you the basics and then put you in touch with the lenders I work with. This will save you untold time, money and aggravation.
5. How much money will I need to buy a home? It depends on a several factors, including the cost of the house and the type of mortgage you obtain. But generally you'll need enough to cover earnest money, the down payment and closing costs. Earnest money is a deposit you make when you submit your offer. It shows the seller you're serious about buying the house. Then there's the down payment and closing costs. Closing costs are fees for paperwork processing.
6. What are the steps to buying a home? That is a great question for a real estate investing FAQ! - Make a wish list. Before you hit the streets, make a list of what you need and want in a home and a neighborhood. Give it to me and I'll help you rate your wish list.
- Get pre-qualified or pre-approved. After you're done your wish list, find out what you can afford. As your Sacramento RealtorŪ I can refer you to a local mortgage broker I know and trust to begin the process. Sellers usually prefer buyers who are pre-approved over those who are pre-qualified.
- Begin house hunting. This can be overwhelming and it's more efficient to have me do the initial search for you. I have years of real estate investing information to apply so we find you the perfect first home!
Using this first time home buyers guide as a reference, you can also do a little research on your own by surfing the Internet or driving around neighborhoods to see what you like and don't like. Remember, though, a huge percentage of home sales are the result of agent connections, (according to the National Association of Realtors). - Make an offer. I'll help you come up with an offer by looking at "comparables;" that is, recent sales of homes similar in size, quality and amenities. I'll then write up a purchase agreement. When the seller accepts it, the document becomes a binding agreement.
- Negotiate, if needed. Sometimes the seller accepts your initial offer. In most cases, the seller will make a counteroffer. At this point my experience in negotiating will be invaluable. Items that are often negotiated include price, financing, move-in date, closing costs, repairs, landscaping, painting, appliances and fixtures.
- Prepare for the closing. When an offer becomes a binding agreement (all conditions and contingencies removed), I'll help you tackle the checklist of action items that you, as the buyer, have agreed to perform prior to closing. Items may include getting a home inspection, appraisal, financing, title insurance and a home warranty. Getting these items done fast is critical because delays could threaten a successful closing of the deal. I'll be your referral source for any service providers and I'll make sure they get onto the property so they can do their jobs.
- Closing the Deal. This is when home ownership is legally transferred to the buyer from the seller. This meeting is normally held at the title company's office and involves a lot of document signing. You can refer to this guide for first time home buyers as a reference before you go.
7. Should I buy a resale home or new construction? People usually buy a resale home because of the established neighborhood and mature landscaping like those old oak trees they love. Others prefer to start from scratch and select everything themselves. If you decide to buy a newly-built home, I can help you negotiate upgrades, a move-in date and other terms with the home builder.
8. Who pays the commission to the buyer's agent?It's the seller's responsibility at close of escrow to pay the commission to the buyer's agent.
I hope you have found this first time home buyers guide useful. If interested in staying current in this ever-changing field, please use the sign up box below.
|
