10 Tips for First-Time
Homebuyers
1. Be picky, but don’t be unrealistic. There
is no perfect home.
2. Do your homework before you start looking.
Decide specifically what features you want in a home and which are
most important to you.
3. Get your finances in order. Review your credit
report and be sure you have enough money to cover your downpayment
and your closing costs.
4. Don’t wait to get a loan. Talk to a lender
and get prequalified for a mortgage before you start looking.
5. Don’t ask too many people for opinions.
It will drive you crazy. Select one or two people to turn to if
you feel you need a second opinion.
6. Decide when you could move. When is your lease
up? Are you allowed to sublet? How tight is the rental market in
your area?
7. Think long-term. Are you looking for a starter
house with the idea of moving up in a few years or do you hope to
stay in this home longer? This decision may dictate what type of
home you’ll buy as well as the type of mortgage terms that
suit you best.
8. Don’t let yourself be “house poor”.
If you max yourself out to buy the biggest home you can afford,
you’ll have no money left for maintenance or decoration or
to save money for other financial goals.
9. Don’t be naïve. Insist on a home
inspection and, if possible, get a warranty from the seller to cover
defects within one year.
10. Get help. Consider hiring a REALTOR? as a
buyer’s representative. Unlike a listing agent, whose first
duty is to the seller, a buyer’s representative is working
only for you. And often, buyer’s reps are paid out of the
seller’s commission payment.
Reprinted from REALTOR® Magazine Online by permission of
the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2005. All rights
reserved. www.REALTOR.org/realtormag
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