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So you think you are ready to buy that home.

April 13, 2009
First Time Home Buyer

First Time Home Buyer

The news is all good, interest rates are lower than ever. Housing prices are down. The first time home buyers $8,000 tax credit is a great incentive to purchase a home this year. Check out what the National Association of Realtors has to say about it. What to do first?

  • Find a reputable lender. Find out how much you are qualified for, make sure that you look at what your mortgage payment will be per month, include your real estate taxes in this computation. You want to know this first, before even looking at homes. I insist on this with my buyers. Looking at homes with a price range you think will work often leads to heartache. Check out tips for finding a reputable lender by Mortgage RX.
  • Ask about first time home buyer programs. There are many good programs available to you, make sure you investigate all the options.  One I have had great success with is the Housing Development Fund.  Take a look at what they have to say.
  • Find a reputable Realtor. Remember, you will be spending time with this person, looking to them for advice, putting your trust in them to assist you with the largest purchase you will make in a long time. This is not a car, this is your home! About.com has written some very extensive articles that will answer questions you may have or didn’t even know you had about chosing a Realtor.
  • Be ready to make changes. You should have a wants and needs list. But be prepared to make adjustments in these lists as you visit more homes. Perhaps the homes in your price range will not have that extra half bath you thought you couldn’t live without. Maybe the home will not have a granite countertop. Be flexible and realistic. Here is a great article from about.com on things to think about when making the choice of what is important to you.
  • Be honest with yourself. If you fall in love with the idea of a particular home, but for instance, it will require too much work that you are not capable of doing or paying for, move on. This Old House  has some good information on this subject.
  • Don’t assume that all homes are overpriced. Putting in low ball offers can really become problematic. Let’s say you find the home of your dreams, you really want this home and put in an offer. Because you have read somewhere that all homes are overpriced by at least 25% you base your offer on that premise. The seller does not have to sell, and never responds to you. You may anger them so much they may not look at any other offer you make as serious. Ask your Realtor to do a buyers market analysis for you. Trust your Realtor to do their job! A good Realtor will tell you if the house is priced correctly or not.
  • If you want that bargain priced home, look at foreclosures. Even short sales have to be approved by the bank, and they are not so willing to let it go for the price it might fetch when it has been foreclosed on and left vacant for a year. This is a reality of todays market.
  • Be patient. It could take time, especially in the lower price range.

Yes, it really is a good time to buy. But are you honestly ready? Have you done YOUR work? I will do my part for you to make your first home purchase a smooth transaction. If you are looking to purchase a home in the greater New Milford area I would love to hear from you. Give me a call, 203-460-1775, or drop me an email and we can discuss your options. I have great resources for you to check out lenders, I have a program called Listingbook that allows you to search the multiple listing service just like I do. Drop by my blog, real estate, real photography, real life and learn more about me and about the area, leave me a comment, tell me what you think. I hope to hear from you soon!

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One Comment leave one →
  1. April 14, 2009 11:04 am

    Excellent tips.

    I really like the one about not assuming that you have to low-ball a house that you think is already a good deal. Chances are, if you think the listed price is very good, so do a lot of other buyers. By making an insultingly low offer in this market, you’re just shooting yourself in the foot.

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