Attention! First Time Home Buyers

Eric Bramlett is a Real Estate Broker in Austin, Texas. He suggests that first-time home buyers consider the following seven tips before signing on the dotted line. Why? Buying a first home is a big step, and requires several serious decisions. You will feel less intimidated when you break down the process of purchasing a home into manageable steps.

1. Begin by asking yourself a question. Will you live in your next home for at least 3 years? If ‘yes,’ purchasing a home makes sense rather than continuing to rent. With average appreciation, you’ll break even on closing costs after two years and you will begin making money at year three.

2. You don’t need a down payment. A hefty down payment is not required. And, you don’t have to have perfect credit, either. Zero down payments are still common, and many banks will jump at the chance to loan you 100% of the home’s value.

3. Get Pre-Qualified. This is a very easy, and important step. In many cases, this can be done over the phone, gives you the buying power to know what you can offer and before you get in the car with your realtor, you’ll know what that new home will cost each month. Knowing your monthly payment will tell you the price range you need to explore.

4. Contact a Real Estate Professional Pronto! Realtors® have access to approximately 99% of the homes for sale in a given market. Your agent will share her/his knowledge of the market and help you make the best possible offer—which isn’t always the highest offer! Choose a Realtor® who listens to you. Her/his insight will be invaluable.

5. Make a List of “Must Have’s” and “Wants.” Your search will be easier and you will be more confident in your decision if you organize your search by making two lists: one includes items that you MUST have—such as the price, the size, the school district, commuting distance, and the like. Your second list of “wants” are items that would be nice to have, but that you can live without. If two of you are buying together (married or not), your lists should reflect what you BOTH are looking for.

6. Pick your favorite neighborhoods. You can change things in the house, but you can’t move it. Drive through different areas and tell your agent what areas most appeal to you and why. Then, concentrate on finding a home in that neighborhood that fits your “must have” list.

7. Make your decision. Your home is likely your largest investment, and making an offer can be scary. However, if you follow the above steps and you’ve found a home that meets your “must have” desires and most of your “wants,” it’s in the right neighborhood and within your budget, go for it! Don’t let another buyer get what would make you happy.