Are you a first-time homebuyer? A homebuying hopeful? Then you are our specialty! We love to help first-time homebuyers through the entire buying process. We know how stressful, complicated, and exciting it can be. That’s why we compiled ten of our best tips to help our first-time buyers from the very first steps, to the very first steps in your new home!
1. Save For Down Payment Early
One of the best ways to jump-start your homebuying process is to start saving for your down payment as early as you can. Something to keep in mind when deciding how much to save is the type of mortgage you are interested in. Some plans require a 10% down payment, while others require as little as 3%. Down payment calculators are available if you’re interested in seeing how much you should be saving based on how much you want to spend on your first home.
2. Decide On A Budget & Build Credit
While you’re deciding how much you should be saving for your initial down payment, it’s natural to decide on your overall budget for your first home at the same time. Once you have that amount determined, it’s also a good idea to look into your credit scores to see if any improvements need to be made. Credit reports are available for free each year, from the three major credit bureaus Experian, Equifax, and TransUnion. You can apply for all three from annualcreditreport.com, which is authorized by the U.S. Federal government.
3. Research First-Time Buyer Assistance Programs
If you’re a first-time homebuyer residing in Illinois, then luckily there are several buyer assistance programs available to you. Here is a link to a list with all the first-time buyer assistance programs available to Illinois homebuyers.
4. Research & Compare Mortgage Rates
Once you’ve decided upon the type of mortgage that you’d like to go with, you should compare rates and costs from the available mortgage lenders. You can request loan estimates from any lender that you’re considering going with and compare the rates that are given to you so you can make the best financial choice.
5. Choose Your Real Estate Agent
As a Realtor myself, I know how pivotal of a role the real estate agent can play in the entire homebuying process. When selecting your agent, particularly for your first-time experience, it’s important to be discerning in your choice. Feel free to interview a few agents, ask for references from them, and ask around with people you know. Each step will ensure that you’re one step closer to getting your dream home, as painlessly as possible.
6. Choose Your Home Type & Neighborhood
These two types do really go hand-in-hand. If you’re drawn to a particular home type, then you may automatically be drawn to certain neighborhoods. If you like certain neighborhoods, then hopefully the home type that you prefer is common there. This is where having a Realtor comes in handy. Experienced Realtors will know which home types are common within each surrounding neighborhood, and can help in narrowing down your choices.
7. Stick To Your Budget
This may seem like an obvious tip, but its importance cannot be understated. It can be easy to get swept away with a home that checks off all the boxes but is just outside your budget. If your budget doesn’t allow for you to go outside of it, even a little bit, then it’s imperative to stick to the budget. Look at homes a little under budget to help stay within.
8. Do A Home Inspection Before Signing
As a buyer, one of the best things you can do to protect yourself during the buying process is to pay for a home inspection before signing. You can attend the inspection with the inspector, which is recommended so you can see any issues as the inspector does. Make sure you know exactly what the inspector will be checking for and that the inspector can access all parts of the home.
9. Negotiate On Price (Especially If Repairs Are Needed)
If any repairs are needed, which you may find out about during the home inspection, then you may have some negotiating power in your favor. You can ask for repairs to be made or for the seller to agree to a lower price so you can complete the repairs once the keys are handed off to you. Your ability to negotiate will depend on the market climate. If too many buyers are vying for the home, the seller will have more power in the situation and may not be as open to negotiations that lower the price. Consult with your agent for advice in that scenario.
10. Purchase Home Insurance
Home insurance is a requirement that mortgage lenders will hold you to, but the scope of the insurance is up to you. Make sure that the home insurance that you pick could adequately cover the cost to replace the home in the event of a worst-case scenario.
In Conclusion
We hope that you found our tips for first-time buyers to be helpful in your homebuying process. We know how stressful, but exciting the whole process can be, especially for first-time buyers. It’s important to keep in mind that the process can always be broken down and simplified into smaller achievable goals that can be tackled one at a time. It’s okay to take your time, take baby steps, and reach out for help when you need it. We’ll be here, rain or shine! We’re always just a call, text, or email away.
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About Gerardo Zavala, Realtor
There is a true passion for connecting people with real estate that makes me fall in love with my career over and over again. While my title says, REALTOR® I think I am much more than that. For example, I am present and actively listening to my client’s needs, on the spot when things are urgent, and by your side to say “congratulations.” Most of my clients will say that I am a connection away from support no matter the situation, day, or time. In my opinion, customer service, educating the client on progress and next steps, and overall satisfaction are my top priorities. How can I help you?
