Home Buyers Should Approach With Caution

Most people who buy their first home take a huge leap of faith. They often have little information about the home buying process and put a lot of trust in their real estate agent. Sometimes that works great, and sometimes the real estate agent is just as inexperienced as the home buyers.

Buying a home is undoubtedly one of the smartest investments you’ll ever make. When he buys a house, he begins to accumulate wealth; it is the first step towards a solid financial foundation. But with such a significant investment, you need to understand what the entire sales process entails and how to best protect your future investment.

First, you need to really understand the real estate market in your area. What is the median price of a 3 bed, 2 bath home (an average starter home)? How does the price vary within different communities and neighborhoods? How do you rate the school systems in your ideal community? What is the expected economic development for the community? It’s important to answer all of these questions before you even start looking for houses.

Next, find a real estate agent you can work with. Don’t start working with the first real estate agent you meet. You want an agent who understands and represents your needs, and who is also familiar with the neighborhood in which you want to buy. Think of the real estate agent as an employee: you want to interview him before you commit to working with him. Some questions you can ask are: how long have you been working in real estate? Are you working full time or part time as a real estate agent? Can the agent give you references to recent success stories? A good reference means a satisfied buyer; someone who was in the same situation as you are now.

Get financial approval. Take some time to work with a mortgage loan officer. You want to find out your current credit status, what types of loan programs are available to you, and you want to see samples of what your mortgage payments will be with each program. You can get pre-approved or pre-qualified for a loan. All this information makes the purchase process easier and faster. You won’t have to worry about finding a home you like and then finding out you can’t afford it.

When you find the right home, don’t rush the process. Don’t become emotionally attached to any home. There is always another property that works just as well. If this is a good property, make an offer through your agent. Take the time to inspect the house. Make sure any issues are addressed or fixed, or have the seller pay for the upgrade.

Get everything in writing and review all contracts carefully. Don’t assume anything during the buying process and don’t take a bona fide guarantee. If you have an agreement with the seller, you should always get it in writing.

Buying your first home is an important step, one that you shouldn’t rush into. Take the time to do some homework first, and you’ll walk away a happy buyer with a new home.