What First-Time Buyers Need To Know

What do you need to worry about as a first-time homebuyer? Today I want to talk with a new buyer who is near and dear to my heart: my own daughter, Nicole. She is thinking about buying a home soon, so I wanted to talk to her today and address all of her concerns. 

What does the timeline look like from start to finish? 

The best place to start is by talking to a lender. If you want to buy a house, you need to know what you can afford, so it’s best to figure that out first. The buying timeline starts once you get your pre-approval from a lender. 

In all honesty, I don’t know anything about interest rates. I’ve never really heard anyone talk about them before. What are interest rates, and what do they affect?

People are concerned about rates right now because they’re going up, and they affect how much you can afford as a buyer.

I knew I had to save for a down payment, but I didn’t know I had to save for closing costs until recently. What can people do if they can’t save for those closing costs?

I’m glad you know that there are some options! Many people don’t realize that and think they just have to save more money. Closing costs are typically about 3% of the closing costs of a house; on a $200,000 house, those costs may be around $6,000. There are some programs out there that can help, especially for first-time buyers. 

What is the difference between a real estate agent and a lender, and how do you find a lender?

A real estate agent helps you buy and sell properties, while the lender is responsible for getting you the money to buy that property. The best place to find a lender is through your agent. Ask your Realtor for a few suggestions because not every lender will fit every buyer. You want to shop around.

What are the best qualities to look for in a lender?

Your lender should listen to you and understand your needs. You also want them to be local to your market. 

If you have any more questions about buying a home, feel free to call or email me. I would love to help you.