June 16th, 2009 1:59 PM

New homebuyer numbers

It's important to analyze the financial consequences of continuing to rent versus obtaining your first mortgage and becoming a new homebuyer.  Consider not only the cost of your first mortgage, but the cost of maintenance, homeowner's insurance, and property taxes, as well. Don't make the assumption that you're better off owning rather than renting-this isn't always the case.

Define your dream

Before you start previewing properties, spend time defining exactly what you want. A good realtor will interview you to uncover this information, but you should prepare early for this conversation, because you may not be sure what you want in your new home. Consider size, the number of bedrooms and bathrooms, age, neighborhood, and amenities. You can then share this information with your realtor to see how your demands and budget match up with what's available on the market.

First-time homebuyer agent

Choosing the right real estate agent is no minor task. Ask your friends and family for referrals, and interview prospective candidates to find the right one. Find someone you trust, who's experienced with new homebuyers.

Preview properties

Armed with your list of must-haves, start previewing properties.  If your budget is tight, you may have to adjust some of your demands. It's alright to give up on things you can add later, such as two sinks in the bathroom or a patio cover on the back deck. It may not be alright to give up on things you can't easily change, such as neighborhood quality, proximity to good schools, number of bedrooms or bathrooms, etc.

Make a short list of the best options, and then revisit those homes to evaluate their locations, price points, amenities and how much work, if any, will be needed to fix them up.

Preserve your right to negotiate

Your final price should consider disclosures about the property provided by the owner and problems revealed by the inspection. If you make an offer before you receive this information, verify that it includes verbiage relating to these two items. You want to preserve your right to negotiate the price should the home need costly repairs.

Read and sign  

The transaction closing is generally a complex coordinative effort, but one that can be managed if you surround yourself with the right first mortgage professionals. Remember to read all the paperwork before you sign, and request clarification on everything you don't understand. It might seem overwhelming, but remember, you're only a first-time homebuyer once.

Please call our Assist-2-Sell Office for our FREE Homebuyers Seminar Dates and Times: 314-993-6023.

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