14 Easy Steps for First-Time Home Buyers

Buying a home for the first time is exciting but often intimidating.

We know that investing in your first home is one of the best things you can do for your financial future, but we also know it can be overwhelming.

Keep reading for a playbook with all first-time home buyers’ steps.

Financially Preparing To Buy

Credit Score

One of the first things first-time home buyers need to address is their credit scores. Your credit score will land you in one of five categories, and you want to be in the “good,” “very good,” or “exceptional” category with a credit score above 670.

If your credit score isn’t where it should be today, make changes immediately to raise it as high as possible in preparation for buying your first home. Check out these ideas to raise your credit score.

Down Payment

Many mortgage options are available to first-time home buyers, and they offer different down payment requirements. After reviewing the options available, decide how much down payment you will need for your first home.

Closing Costs

Remember to consider closing costs as you save for your first home. Closing costs typically range from 3% to 6% of the home’s purchase price.

Renovation Costs

Depending on the home you choose, you may need to factor in renovation costs. These might be minor costs like:

Paint
Hardware
Landscaping

Or there may be more major expenses, like:

Appliances
Flooring
Hardscaping
Bathroom or kitchen remodel

Decide what level of renovation you’re willing to take on based on your budget, skill set, and how long you want to wait before your home is complete.

Moving Costs

Remember to account for the costs of a move. Moving expenses might include:

Moving truck rental
Movers
Hotels
Eating out
Professional cleaners

Consider Your Budget

Before getting pre-approved, you can know how much you can afford to set your budget. Using a housing payment calculator like this one can help!

Selecting a Mortgage

Explore Your Options

Many options are available to first-time home buyers, including some down payment assistance programs. Take the time to shop around and see if you qualify.

Talk to multiple lenders about what they would approve you for, including:

Conventional mortgages
FHA loans
USDA loans
VA loans

Compare Rates and Terms

When choosing a lender, remember that you are interviewing them, not the other way around. Find a lender you trust and enjoy working with.

It’s best to work with multiple lenders first, comparing their rates and terms to get the best mortgage.

Get a Pre-approval Letter

Before shopping for a home, you need a pre-approval letter. This is especially true in a market like the Bay Area today, where you need pre-approval to make a competitive offer. Sellers are not interested in waiting to see if you qualify, so don’t miss out on the home you want by dragging your feet in this area.

Selecting a Home

Choose a Real Estate Agent

Working with the right real estate agent is one of the most important factors for first-time home buyers. Choosing someone with expertise and strong negotiating skills will be essential in this highly competitive market.

Consider the Location

The hardest thing to change is your home’s location. First-time home buyers may be tempted to look at homes that tick every box on their wish list, even if they are outside the ideal location, but this is usually a mistake.

Before making a decision, consider the commute time, school districts, and community amenities relevant to a property.

Pick the Right Type of House

After settling on the right location for your home, make sure you have a list of the negotiable and non-negotiable features of the house. Consider questions like these when making your list:

How much maintenance am I comfortable with?
Do I want a turn-key property or a fixer-upper?
How many bedrooms and bathrooms do we need?
Are there any unique home features our lifestyle requires?

Purchasing a Home

Home Inspection

In this highly competitive housing market, some first-time home buyers may be tempted to waive a home inspection to accelerate the escrow period or make their offer more enticing. We would strongly caution against this.

A professional home inspection will protect you from potentially catastrophic issues with the home in the future and may lend you more negotiating power.

Negotiation

If you’ve chosen a real estate agent with the negotiation skills needed in this hot market, you should be able to negotiate terms of the sale beyond the purchase price. You may be able to save money or make the home an even better fit by asking for repairs before closing or requesting that certain appliances or furniture be included in the sale.

For more information about buying a home in the Bay Area, contact me today! I have a team of experts ready to help.

Amar Realtor offers expert real estate services with proven results in the Cupertino real estate market and outlying areas. It offers homes for sale in Milpitas, San Jose, and Campbell, properties in San Mateo County, and homes in Contra Costa and Alameda County.

More Advice for First-Time Home Buyers

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What Home Buyers Are Saying About Amar:

“Guess what you know? I am on my second visit meeting with Amar. He managed to buy a house, you know, that is seventy five thousand dollars less than the maximum bid price, and more importantly, he closed the house before they actually open house of the house, so that’s, you know, on a challenging market like Mission San Jose you buy a house for seven to eight thousand dollars less and close the house before the open and a house event that’s amazing I can’t explain.

I can’t thank enough Amar the amount of effort that he put in to close the house and the fact that he bought a house within a month, you know within a week since I met him it’s amazing and I’m since then I have recovered so many friends, and he kept doing it’s not share luck or something you know this guy as magic, and you know he does it every time you know all my friends were happy that I recommended him.

I don’t want to take too much of my time. I can talk all day long, but you know, please do go and see my recommendation, reviews that I did a LinkedIn or and at this website. I wish you all the best and you know he’s the guy if you ever want to buy a house, look nowhere, you know he’s the guy. I want to wish you guys all the best in your home buying experience.”

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