What It Takes To Be A First Time Home Buyer

What It Takes To Be A First Time Home Buyer

When it comes to this market it is very important to be ready to buy when you come across the perfect home.   What does ready mean?  Here are some tips on what to do to best position yourself in the eyes of sellers, so you can get that dream home:  
1.     Finances- when it comes to a real estate transaction, money is a huge piece of the process.  Understanding what you can afford is crucial to allowing you to be able to focus your home search with your agent.  The best way to do this is to work with a loan officer to go through your financial history and come up with the best fitting option for you.   You may or may not need to put down 5%, 10%, or even 20% on your home.  Meeting with multiple lenders is always a good idea as well because then you can compare options to see what truly is the best fit.
                 a.   When running numbers at home, a common thought is that your monthly payments on your new home should be between 25%-33% of your gross monthly income.  
                b.   A loan officer will also be able to pull your credit report to see if there are any items that need to be cleared before your finance a home.  They can also provide you with steps on how to address any issues.
                c.   Documents- get all your paperwork in order, from W-2, paystubs, bank statements, and information on your lines of credit, the more organized you are at the beginning of the process the smoother it will go.
                d.   Work to get preapproved, so you can move in a position of strength when you find the home you want to put an offer in.

2.  What do you want- before meeting with an agent, start to gather what type of home you want to be your dream home.  Are you looking for a single-family attached home versus a townhouse?  Also, come up with a list of deal breakers that you cannot live with, as this can focus the search criteria.  For example, do you know that you do not want a HOA or do you know you only want to live in a 1-story ranch?

3.   Finding an agent- one of the most important parts of this step is to find the best fit.  Meeting with multiple agents is crucial because agents have different personalities, and at the end of the day you want what will work best for you, and allow you to get that dream home.  Also when talking to an agent, learn about current market trends and this will help discover if now is the best time to buy.

4.  Working with your agent- have the conversations at the beginning regarding what you expect from your realtor and what they expect from you.  Create a system of open communication so that when homes match your criteria you can have availability to see them.

5.     Patience- Understand that in Denver the market is a very favored toward sellers, so it is common to be in multiple offer situations.  Sometimes things are out of your control, so it is important to be ready to go as quickly as possibly.
  Clearly the current market dictates preparation for buyers at the beginning of the home buying process to enable them to move on a home when they find one.  In summary, essentials to being the strongest buyer possible you should meet with multiple lenders and agents to find the best fit, get preapproved with your lender once you select one, and get your finances in order from an organization standpoint as well as clear up any credit issues.   

Michael Kane is a Broker Associate at Keller Williams. He is a member of the Carr Peck & Associates team that is recognized locally and nationally as in expert in real estate. Locally he is a member of the Denver Metro Association of Realtors.  Nothing brings him more joy than making his client’s dreams become a reality!  For more information feel free to contact him or call 303-717-9284.

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Phone: 720-446-6301
Dated: August 5th 2014
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