Santa Clarita Real Estate, Santa Clarita Luxury Homes, Valencia Real Estate, Westridge Real Estate

Tips for First Time Buyers

Buying your first home can be one of the most exciting, scary experiences of your life.  Being prepared can ease a lot of the anxiety associated with this first major purchase. 

• Initial Planning

• The Search

• What Next?

• Lists, Lists, and More Lists!

INITIAL PLANNING 

Be realistic about your financial situation and determine how much of a mortgage payment you can afford. Factor in things like property taxes and utilities. Clear up any discrepancies on your credit reports. Now is not the time to purchase a new boat or vehicle, nor is it the time to move money around.

Locate a mortgage lender or broker. They have the experience and knowledge to assist you in determining how much home you can afford. See (insert link) “Finding the Best Rates for Your Mortgage” for tips.

Become pre-qualified. This means simply discussing your finances with your lender or broker and determining how much house you can afford. Then become pre-approved. This involves actually getting a commitment for a certain amount from your lender. This is not absolutely necessary, but could make the difference between a Seller accepting your offer over another. A Seller can be reluctant to take their home off the market unless they know they have a good solid offer from a serious buyer.

Make a list of the features you want in a home. Some of the features you might want to consider are:

• How many bedrooms?

• How many baths?

• Ranch or 2-story? (Think long term if you plan on staying in your home long term – will you find stairs convenient later on in life? Is the laundry room accessible on the main floor?)

• Single Family or Multi-family (such as condos)?

• 1, 2 or 3 car garage?

• Do you have a hobby or home based business that would require a separate designated area?  Does that area need special plumbing or electrical features?

• Do you want a place with a swimming pool? Maintenance-free living?

Note the type of neighborhood – Some of these considerations might include:

• Are schools an issue? Hospitals or Medical Centers?

• What type of neighborhood appeals to you?  Do you like the idea living in the suburbs, where shopping and cultural opportunities are a short drive away or do you prefer living in a rural setting? Do you crave the city life, do you like the intimacy of small town living?

• Is the neighborhood and surrounding area compatible with your lifestyle (i.e. near parks and hiking or bike trails, near a lake or river, close to shopping or cultural events)

Now that you’ve got a game plan, make another “wish list”. Include only the features from your first list that are the most important or of highest priority.  If you noted you’d like three bedrooms with a separate office, could you live with a three bedroom and convert one of the bedrooms into an office? If you enjoy cultural events, would suburban living where you are close to, but not in the city, work? 

THE SEARCH 

Get a map of the area(s) in which you’re interested.  If you’ve researched listings online, print out the information to discuss with your agent.  Highlight certain areas or features you want to remember as you start looking.  Looking at many properties in one outing can be confusing.  Bring a notebook and pen and jot down special features and address of each home.  Note pros and cons while they are fresh in your memory.  A digital camera is an excellent tool – take photos as you go – it will help you distinguish one home from the other once you’re back home. If you don’t have a digital camera, a disposable camera or video camera will serve the same purpose.  Use your initial lists as a guideline to keep you on track.  Add that pool if you hadn’t thought of it before – but trust your original instincts and thoughts.

When looking at homes, think of the home in terms of selling as well as buying. You might think that train whistle you would hear a dozen times a day is quaint – would someone else? This is important even if you are planning on living there for a long time – no one can predict the future.  Be pragmatic in your analysis of the property. Take note of both good features such as proximity to shopping and restaurants as well as less desirable features such location close to an industrial area or noise.  Emotions can be saved for making your house a home. Don’t overlook a plumbing or electrical issue because you fell in love with the sunroom.  By the same token, if you’re not in love with the décor, picture the home empty, or with your own furniture. 

Don’t be afraid to add listings to those your agent chooses.  Try to be realistic – don’t go looking at a million dollar home if you can only afford a few hundred thousand dollars, but go ahead and do some research of your own – it’s your home.

WHAT NEXT? 

You’ve found your next home! Now you want to make an offer.  Include a property inspection and any mortgage contingencies in your offer. Specify the appliances or furnishings that you want included in your offer. See (insert link) “Making an Offer” for tips.  An experienced agent can assist you in making sure you are protected.  Request a final walk through within 24 hours of the closing.  Ensure that the appliances and special features (such as the unique ceiling fan or wall mounted TV in the den) included in the sale have not been replaced with less expensive items or that they aren’t missing altogether.   

LISTS, LISTS AND MORE LISTS! 

Once your offer has been accepted, the exciting and harrowing time really begins. Make lists! Lists of who you need to contact, such as movers, relocation specialists, schools (to transfer records from the old, and find out what is needed for the new). Lists of things you need to do, such as hold garage sale, find boxes, begin packing, arrange for utilities to be cancelled, arrange for new utilities for your new home, prepare change of address cards – everything you can think of. Don’t forget to assign jobs – no man is an island. If you have family members willing and able to help, enlist their help. Go through each room and determine what you will toss, what you will give to charity, and what you will move or pay to have moved. 

Don’t be afraid to ask your agent for assistance – many can provide you with a ready made list of things to do to prepare for your move.

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copyright © Michael Feicco 2006