Eliminating First Time Home Buyer Fear

A first time home buyer may be terrified just thinkingTHREE:
about the home-buying process...where to go, who toDon't wait until you've found a home and made an
choose, can I afford it...how to get started. Homebuyeroffer to get approved for a mortgage, investigate
Classroom has identified some of the sources thatinsurance availability, and consider a schedule for
cause fear and will share with you how to dissect thismoving. Presenting an offer contingent on a lot of
fear and keep moving forward with the home-buyingunresolved issues will make your bid much less
process.attractive to sellers.
ONE:SIDEBAR:
There is no "perfect" time to buy, any more than thereBefore you make an offer on a home have your
is a right time to sell. If you find a new home now, don'tbusiness in order! Make sure you have a pre-approval
try to second-guess the interest rates or the housingletter, know how soon you can move (closing on a
market by waiting. Changes don't usually occur fasthome usually takes 30 days from the date your offer
enough to make that much difference in price, andis accepted). Therefore, you have to wrap up loose
remember a good home won't STAY ON THEends at your current residence. Sellers don't like to
MARKET LONG.have contingencies (i.e. stipulations) in the contract. For
SIDEBAR:example, you can't close on the property until 90 days
"FOR SALE" signs in yards DO NOT guarantee thatfrom the date of the accepted contract.
those homes are still available. Often times, real estateRemember there are other buyers in line looking at the
signs will remain in the yard until the home has officiallysame houses you may be considering. Be prepared.
"closed" and is off the market. This happens primarilyBe ready to play ball. Handle your business to help
because deals fall through (do not work out) and theensure a smooth transition.
home has to be put back on the market, after beingFOUR:
taken off for that buyer. If you work with a RealFactor in maintenance and repair costs in your
Estate Agent you will be able to verify the true statuspost-home buying budget. Even if you buy a new
of the property at all times. If the deal falls through andhome, there will be some costs. Don't leave yourself
you're working with an agent s/he can notify youshort and let your home deteriorate.
immediately that the home is now back on the market.SIDEBAR:
Find a Real Estate Agent today!It would be wise to have an emergency fund set aside
TWO:for repairs and maintenance in your new home. Trust
Don't try to be a "killer" negotiator. Negotiation isand believe things will happen in your new home. Unlike
definitely a part of the real estate process, but trying torenting, there is no one to call at the leasing office to
"win" by getting an extra-low price may lose you thefix the toilet. Keep in mind that these responsibilities are
home you love.now those of the first time home buyer.
SIDEBAR:But, don't be discouraged, because the benefits you
If you are bidding on a highly desirable home, you wantreceive as a first time home buyer FAR outweighs
to make sure your offer is attractive, stands out andhome maintenance. Remember, this is "your" valuable
gets the sellers acceptance!investment.
Always start by making an offer "lower" than theFIVE:
asking price for the home, but be careful not to "lowAccept that a little buyer's remorse is inevitable and will
ball." Often times first time home buyers think that ifusually pass. Buying a home, especially for the first
the seller "really" wants to sell they'll accept their offer.time, is a big commitment, but it also yields big benefits!
That is "improper" thinking. Sellers' have a choice in theSIDEBAR:
offer they'll accept just as you have the choice in theThis one perhaps is one of the most important. Once
home you'll purchase.you commit to one home (especially after looking at
If you love the home and feel that it is the "perfect fit"over 20) you'll wonder if you chose the right one. You'll
for you and/or your family negotiate appropriately,wonder if you should have waited until next year and
fairly and wisely. Why miss out on the right homeso on and so on. Understand that this feeling is
because you keep going back and forth with the sellercommon among the majority of buyers. Once you've
over $1,500? Besides, $1,500 divided by 30 years (360chosen your home begin to settle, relax and start to
months) is a mere $4.16 cents more per month. Don'tvisualize you and/or your family living in your new
lose your dream home over dollars and cents!home. Those feelings of remorse tend to drift away.