First Time Homebuyers Come Knocking
It’s that time of year for the annual convention of the National Association of Realtors. This year Orlando, Florida is crawling with extraordinary agents from the industry - I would give my eyetooth to be there with them! This morning, NAR released findings that 41 percent of homes in 2007 were sold to first-time buyers. MSNBC reports,
According to the study, the median age of first-time buyers was 30, down from 31 in 2007. The median income for a first-time buyer was $60,600 and typical first-time buyers bought homes costing $165,000.
This is an historic time to jump in the market, but first-time homebuyers do need to educate themselves about the process of buying a home. Look before you leap!
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Talk to your bank, credit union, or a lender in advance to see if your credit score, income, and debt will allow you to buy a home and how much.
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When you hear “how much” remember that just because you’re qualified for X amount, it doesn’t mean you can afford it! Write out a realistic budget and stick to it.
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Save, save, save for a down payment. There are still 100 percent loans available, but if you can save 20 percent, you won’t have to pay MIP, an insurance policy that insures the lender against loss if the homeowner defaults on a mortgage.
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Don’t be afraid to interview your agent. See that your personalities match, that the agent has experience, and they know the area. Don’t expect them to provide information that will be in violation of fair housing laws. To find an agent who has completed special courses in buyer representation, find someone who has an Accredited Buyer Representative designation.
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Don’t buy the first home you walk into - or at least look at several before you decide that the first one is THE one.
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Be sure to get a home inspection. In addition, a termite or wood destroying organism inspection should be completed, along with a septic health inspection if the home is not connected to public sewer.
There are a hundred other first-time homebuyer tips available online. Go to your favorite search engine and do your homework!
