Advice For The First Time Homebuyer

If you are in the market to purchase a Phoenix area home, there are several things you can do to help make the process go smoother. Many first-time homebuyers do not know what to expect and end up paying thousands of dollars more than what they should have. The following tips are designed to help a home or real estate buyer get the best deal you can when buying a home.

1. Research Phoenix Area Lenders.
You will want to know exactly what the lender has to offer before you make any commitment on a loan. It is always best to interview three different lenders before making a decision.

2. Get Pre-Approved.
As soon as you have chosen your lender, based on their qualifications and options, you will need to get pre-approved. This will allow you to know exactly how much you can afford to spend on a home. There are also some home sellers that will only allow you to see their home if you have been pre-approved for a loan first.

3. Get Organized.
Make certain you have all the paperwork you will need in order to apply for a home loan. This may include the copies of the last two year's tax returns, bank statements, and personal documents. By being organized, you can avoid delaying your loan approval.

4. Closing Costs.
Know before hand how much you will need to pay in closing costs for the property you choose. Your lender can help you with this and it will allow you to save up the money before you commit to purchasing a home.

5. Research the Area.
Before you begin looking at houses, research the area in which you want to live. Once you’ve committed to buying a home, you may find the area not to be as desirable as you once thought. Make sure you clarify how long it is from the area where you work and investigate the school systems. You’ll also want to know how far the neighborhood is from major airports and shopping areas. These are all things that may help you to determine which neighborhood you want to live in.

6. Make a List of What You Want.
If you need a home that has three bedrooms, but you really want a fourth, make sure you put this on your list. Other items that may be of importance are: bathrooms, garage, storage area, and the size of the kitchen. Once you have your list, rate each one on importance. For example, if you must have a four bedroom home, you may have to make do with a smaller kitchen. However, make sure you have your list of needs versus wants, as well.

7. Get the Help of a Real Estate Agent.
Once you have determined how much you can afford and the neighborhood you prefer, a Preferred Phoenix area real estate agent or Realtor can help you to find your desired home. The real estate professional will not only know the area where you are looking to purchase, they’ll be able to help the whole buying process go much smoother and will be able to educate you on all matters to do with the closing. Like your lender, it is always best to interview three real estate agents before making the decision on which one you prefer to represent you.

8. View Few Homes at a Time.
The one mistake many buyers make is looking at too many homes in one day. If you look at more than four homes in one given day, you are taking a risk that you will get them all mixed up. Look at only four homes in one day and you’ll be able to remember each home much clearer.

9. Take Notes and Pictures.
When viewing homes, your Phoenix real estate agent will be able to provide you with most of the information you will need to help make your decision. Make certain you read the Seller’s Property Disclosure very carefully. What they will not be able to do, however, is provide you with your reaction to the home. Take a small notebook and a camera with you and be as detailed as possible. If you walk into a home and the first thing you notice is how cozy and comfortable the home is, write this down and take pictures to help remind you later when you are making decisions.

10. Research the Deed.
Before you make an offer on a property, you'll want to make certain you thoroughly find out if there are any limitations of what the property may be used for or even what can be built on the property. If the deed to the property has not been given as part of the disclosure package, make certain you get it from the real estate agent.

11. Take Your Time.
Many homebuyers often feel too rushed in purchasing a home. They worry they'll lose out on the deal and lose the home of their dreams. Regardless of this sense of urgency, a homebuyer needs to take the time as it may be one of the most expensive decisions they'll ever make. By taking your time, you will be able to make the right decision.

12. Consider the Resell.
When purchasing a home, you'll also want to consider whether it will be easy to resell or not. Unfortunately, circumstances do change and if you need to sell in the future, you'll want to make certain you purchase a home that will sell easily. For example, homes with two bathrooms sell much quicker than homes with just one.

13. Making an Offer.
When you make your offer, the first thing you will want to do is make it contingent upon different inspections. What this means for you is protection. If the home does not pass the inspection, you will have the option of voiding the contract. For example, if you have asked for a general home inspection and it determines that the roof needs to be replaced, you will have the option of asking the seller to repair the roof or the contract is void.

14. Ask for the Right Inspections.
When you are filling out the contract, you will want to make certain you ask for the right inspections. For example, you will always want to do a general home inspection. This will determine if the structure is safe and sound and if any repairs are needed. This will not, however, determine if the septic system is in good working order. You should require a general building inspection, a septic inspection, water test, and depending upon where the home is located, a radon test.

15. Your Offer.
When you are making an offer on a home, the one mistake many people make is not offering the right price. Your real estate agent should be able to provide you with a CMA or Comparable Market Analysis on the home. This will allow you to see what other similar homes in the area have sold for and it will help you to determine what the home is worth. If the home is listed for $300,000 and yet, the CMA your broker did claims that the home is only worth $270,000, you may be able to purchase this home for as much as $30,000 less than the asking price or even more. On the other hand, it will also help you to make an offer that will not be taken as an insult by the seller.

16. Do Not Disclose Your Information to A Seller's Agent.
One of the many mistakes that homebuyers make is disclosing their information to the seller or seller's real estate agent. For example, if you know you can afford to pay the full price or more, do not disclose this to the seller or their agent. You are trying to get the home at the best possible price and should you let them know you can afford to pay the price, they may not take less than the full-price. It is always wise to use your own Buyer's Agent who will represent your interest rather than the seller. Your real estate agent will protect sensitive information from the seller and will also expose certain information to you that a Seller's agent may not.

17. Utility Bills.
You may want to ask the seller for the estimated cost of utilities, as well. You can write this up as part of the contract that if you are not satisfied with the figures, you can call the contract void. This will give you an idea of what you can expect for utility bills once you move in and may protect you from outrageous utilities after you‘ve already purchased the home.

18. Negotiating.
When you and the seller can not come to terms on the price of the home, you may be able to ask them for additional items to make up for the price. For example, you may be able to tell the seller you will agree upon their price if they include certain items in the sale, such as window treatments, appliances and etecetera. This will be less out of pocket expense for you later on.

19. Conduct a Final Walk-Through Before You Buy.
The day before you close on the property, make certain you ask your real estate agent for a final walk-through when the home is empty of all the seller’s items. This will allow you to make certain the property is in the same condition as when you left it. Unfortunately, there are sellers that will cover up holes in the walls with furniture and then when you move in, you find them and it’s too late. The final walk-through will help protect you.

20. The Closing.
When you close on your new home, you will want to make sure that you bring all necessary paperwork with you. You will be required to bring proof of homeowner’s insurance with you and the one mistake many people make is they do not bring a picture id with them. This is must if you wish to sign the papers. Your real estate agent or closing attorney will advise you of any other items you may need to close the sale of your new home.

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