Category: Uncategorized

If you have been wishing that you could buy your first home, there is a good chance you have been seeing the headlines. Reading those headlines would discourage anyone. But as with most things headlines can be different than reality. To be fair, it is not easy for first time home buyers to buy a home. Prices have gone up. Interest rates are higher. And rent doesn’t make it easy to save money for a down payment. So, even if you are doing pretty well financially, it is easy to assume you are not in a position to buy. So, is homeownership really out of reach?

When you are looking at social media it is easy to feel like you are behind where you should be and not doing as well as others. You may also be listening to your co-workers that purchased a home a few years ago. All of these little things can eat away at your confidence and suggest that buying a home is not realistic now. But, you are still curious. What questions should you be asking to find out if home ownership is possible?

How do I find out?

The first question to ask is: Am I in a position to buy a home? It is a pretty simple, straight forward question. But you may not know how to get that question answered. So, the next question you need to ask is: Who would I need to ask to get a clear answer? The best person to ask this question to is a local lender. Find someone that works with first time home buyers. You want someone that will be patient and answer your questions. The ones you have and the questions you do not know to ask. When you call this person, ask them if you can set up an appointment to meet with them. If that is too scary, make a phone call and ask if they can send you an online loan application. It doesn’t cost anything to find out.

Who do I ask?

The next question, if you are still nervous to make the phone call is to ask yourself, what is the worst thing that can happen if I try to find out? By making the phone call you are not committing to anything. You are working to get answers to your questions. The worst that could happen is you could confirm that you are not quite ready. If you are not quite ready, you can make a plan. The plan may be to save more money for your down payment. You may need to improve your credit. You can find out what is needed to make that happen.

What if the answer to the question is that you are ready to buy a home? This does not mean that you need to rush out and buy something tomorrow. It means that you now know where you stand and that you have options. You can not decide what timing works for you.

If you have been feeling like buying your first home is out of reach you are not alone. Between rising prices, higher interest rates and what the headlines are saying, you may not feel like you can. If you can have a quick conversation with a mortgage lender, you can have a clear picture of where you stand. You may find out you are closer than you think.

If you have been shopping for a new place to call home you may have noticed that times have changed. It used to be that you would view a few photos, read the remarks and set up an appointment to see the house in person. Today, as a buyer, you can explore virtual tours, floor plans, flood maps, walkability scores, noise rankings and commute times before you ever set foot inside a home. Well, if that is not enough information, now you can explore how much sunlight a home gets during the day. We have all read the Realtor’s description of the home. They talk about how light and bright it is and how the home is flooded with natural light. Now you can verify that information. You can figure out the sun score and see if you think the home will work for you.

Where do I find sun scores?

When can you get this information? Redfin.com has launched the sun score to learn how much natural light a home received room by room and hour by hour using AI and geospatial data. To be fair, most buyer really do care about this. The amount of sunlight a home gets can impact the feel of a home. Sunlight preferences are subjective. Not everyone wants a light and bright home. Some people want a home with shade, cooler rooms, mature trees and a sense of privacy. The sun score can help these people find their perfect home too.

You can change the score

Some might say that this is going to cause buyers to over think things. You can change a homes sun score by trimming trees, opening blinds, repainting rooms to brighter colors and even improve lighting. All of these things can affect how light and bright a home is. Also, how much sunlight a home gets overall depends on a huge number of factors that have little to do with the home itself. The major factors are the climate, weather patterns, surrounding terrain, time of year and even the direction the home faces.

As a buyer today you have access to more data, rankings and scoring systems than ever before. Tools like this can be very useful, however, they might cause you to over think your decision. Make sure that you keep in mind the bigger priorities like the layout, affordability and overall fit of the home. Everyone will have preferences. The important thing to remember is no home is perfect. You can make it your own once you move in.

We have all heard the real estate saying, “location, location, location.” The saying reminds us that the location of a property is one of the most important things to look at when purchasing a property. Location is usually one of the first things, along with budget that a buyer talks about. They may want to live close to family or have a short commute to work or school. But how do you pick a neighborhood to live in?

You are not just buying real estate

Buying a home is not just purchasing real estate. It is also choosing a lifestyle that come with the neighborhood. Each neighborhood has its own vibe and attributes. But how do you find out the pros and cons of a neighborhood? Let your real estate agent be your guide. A good agent should act like a local guide. They can offer honest insight not on just the attributes but also any drawbacks to consider.

Do your research

Another good source of information is chatting with people that provide services in the area that you are interested in. Stop at the local, neighborhood coffee shop. Ask the servers some questions. If you are a god owner, take your dog for a walk through the neighborhood that you are considering. Ask a fellow dog walker some questions. Here are some ideas. “How long have you lived in the neighborhood?” “How has the neighborhood changed over the years?” “Is there anything you wished you had known before you moved into the neighborhood?” “What is your favorite thing about living where you do?” These questions delivered in a lighthearted manner, can give you some great insight into the community. They can also give you a feel for what it might be like to live there.

Take a walk

While you are on your dog walk notice how the homes are maintained. Are the streets lined with trees or graffiti? Stop in some of the neighborhood shops in the neighborhood. Are the stores thriving and well maintained or are many retail spaces vacant. This leisurely walk through the area can give you a feel for the community energy.

Check out social media

Check out the neighborhood that you are considering on social media. This can provide you with some unfiltered insight into the areas character and culture. What does the neighborhood prioritize? What are the complaints on social media? Do their values align with yours? Social media can give you information on day-to-day happenings, special events and local recommendations.

Choose a neighborhood is choosing a lifestyle. Like any big decision it deserves research and some reflection. Remember that no neighborhood is perfect. The goal is not to find perfection but to find a match that feels right to you.

When people talk about why they are renting, rather than buying, the reasons given are not surprising. Interest rates are too high. Prices are too high. But the real reason may be the fear of getting pre-approved for a mortgage. On paper, getting pre-approved seems simple. It doesn’t take long. In the real estate world, it is the first step in the process of buying a home. What isn’t talked about often enough is how emotional this first step can feel for prospective home buyers. It feels like a stranger deciding whether you are worthy of buying a home. If you are worthy, this stranger will tell you how much you can spend. This is only after you provide an incredible amount of personal information. What if you are told no?

Fears are real

First time home buyers fears are real. This process is emotional and that first step can be hard if you have never taken it before. For a real estate agent, asking a buyer if they are pre-approved is routine. To an agent, calling a lender is routine. For the first time home buyer is can feel like walking into a test you did not study for. There is no real way around this first step in the process, unless you have access to a large amount of cash. What are fears and questions about the process?

Questions you may have

Here’s some questions you may have. Is my credit good enough? Do I have enough money saved for a down payment? What do I do if the amount that I am pre-approved for doesn’t match what homes cost in my market? If you are wondering the answers to these questions, you are not alone. These questions can be answered fairly quickly by a lender. The first step is to call a lender. The next step is to submit a loan application. Once the application has been reviewed you will talk with the lender. In some cases you may be told you are not ready yet. If that is the case you will make a plan on how to get to the point that you are pre-approved. The conversation regarding your pre-approval is not a verdict on your worth. It is a point in time look at your situation.

Lender recommendation

Not all lenders are alike. Some are better with first time home buyers than others. All are typically capable of helping a buyer through the process. But it is best to find a lender that understand the human side of the process. Ask Lestel for a recommendation. She can connect you with a lender that is patient, educational and supportive. The right lender does not judge where you are starting. They help you understand where you are and how to get to where you want to be. Remember that getting pre-approved isn’t a judgement or final verdict on your ability to buy a home. It is simply a starting point. It is important to connect with a good lender that can make the process feel less intimidating. Someone that answers questions, sets expectations and provide you with a road map to home ownership.

It is easy to be a casual, potential buyer, looking at new construction. You drive by and are curious about what the builder is building and what the homes are selling for. So, you turn the car around and stop in. You visit with the on-site sales representative. It is very low key. While you are there you do not sign anything. Then, you go home and start thinking about what you saw, if it might work for you and you have questions. You decide to stop in again and get your questions answered. It soon starts to feel very real and you call your agent. Unfortunately when you arrive at the model home, with your agent, you are told that it is too late to get your agent involved. What went wrong?

Builder set the rules

What many buyers do not realize when they visit new construction is that the builder sets the rules for how the rest of the potential transaction will unfold. If a buyer walks into a model home without a realtor, t potentially establishes the buyer as someone working directly with the builder’s sale team. The buyer can be registered to the builder, even though nothing was signed. Once that happens it is difficult, if not impossible to be allowed to bring an outside agent that will represent the buyer. Each situation and builder can be different. Be careful or a casual look may mean you can’t bring your agent to look out for you.

Builders want control

Why does this happen? This happens because builder want to keep control of the process. A builder controls the product, the pricing, the incentives and the timeline. Once a buyer’s agent is introduced that agent adds their voice to the process. That voice is looking out for the buyers interest. It is important to remember that the sales agent’s role is to protect the builder and the builder interest. The agent for the buyer is there to ask the important questions. They are there to advise on contract terms, explain builder add ons, and how incentives may affect the bottomline. Buyer’s agents can help buyers understand where to negotiate, even when things seem fixed.

Negotiations are different

Negotiations on new construction are quite different. An experienced, buyer’s agent knows where those less obvious places are to negotiate and helps the buyers. The role of a buyer’s agent in new construction is to also compare this builder to others nearby. They can help the buyer to evaluate what upgrades pay off at time of resale. In short, new construction may look very straight forward. It is a real estate transaction between buyer and seller. However, the seller has much more experience than the buyer.

If you find yourself wanting to just look at new construction, think before you look and know what the consequences of that “quick look” may be. If you would like to have an agent involved to look out for you best interest, call that agent to go with you before you look. That quick call can preserve options and prevent frustration later.