First-Time Buyer Specialists

The best way to prepare to own your first home is to educate yourself about the home buying process. You can take a class or pick up books from the library. Also, read the real estate sections of your newspaper and consumer magazines.

Here are some things you will want to do:

• Ask lots of questions
  Learn what questions to ask and where to ask them. Your list of questions when you are interviewing real estate agents will be different than those you ask when shopping for a lender.

• Prioritize your criteria
  Determine what you want and need in a new house and prioritize your list.

• Study a variety of mortgage choices
  Investigate the available loan options and decide which is best for you. You may want to interview several lenders to learn about the many mortgage products available.

• Get pre-approved before you house shop
  Get pre-approved for a loan before you start looking for a home so you know how much you can afford to pay.

Your purchase offer looks good to the sellers. They are ready to accept it, but you are using a buyer’s agent (also called buyer’s broker). You know that sellers pay their agent, but what about yours?

• What is a buyer’s agent?
  A buyer’s agent is retained by a buyer to look out for the buyer’s interests and to negotiate the best price from the buyer’s point of view. Just as the agent who lists the seller’s home owes the seller complete loyalty, the buyer’s agent owes the buyer the same degree of loyalty.

• Who pays the fee of the buyer’s agent?
  Sellers generally indicate on the listing agreement whether the seller is willing to pay the buyer’s agent. Most sellers choose to work with a broker who splits the commission with a buyer’s agent even though that agent does not represent the seller’s interests. This, of course, maximizes the number of potential buyers for the home.

While many important details must be considered in choosing your first home – style, size, price, location – one thing is certain: if you will be moving again in a few years, be sure you buy with selling in mind. Chances are, the items that make your new home a comfortable fit for you will also attract buyers later on.

Some special considerations for the first-time homeowner who has resale in mind:

• Watch for growth potential
  Look for an established neighborhood that will be enhanced by future growth but not inconvenienced by it.

• Look out for resale value
  Seek a prime neighborhood where homes sell well in any market.

• Check out location
  Consider availability of all aspects of transportation; even those you may not use.

• Research Area Schools
  Check for quality public schools, whether or not you have school-age children.

• Go for the green
  Look carefully at the lot for trees and greenery to buffer winter winds or summer heat.

You’re neither rich nor poor, and you’re ready to buy your first home. You look around. All those homes on the market! All seemingly priced out of reach!

Cheer up. You’re not alone. With some solid real estate counseling and some help from lenders and/or sellers and others, you can not only get your toe in the door, but you can own the house too. It just takes some creativity, a few inside tips and a bit of homework.

For starters:

Examine your goals

How ironclad are your dreams? Can your ideal of a formal dining room or a hot tub on a redwood deck be postponed? Must you have a two-car garage? Lowering your expectations and starting out modestly (in decent housing that meets your needs) can lead to owning those dreams — in time.

Start saving

Get your priorities straight. Without taking all the fun out of life, what’s more important to you, weekends on the road and dinners out or stashing away at least part of your down payment?…

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