I am receiving a bunch of questions from first time home buyers who are considering buying this year. We’re going to answer those questions and give you some helpful tips to get you on the path to homeownership.
Hey its your favorite local Realtor, Eren Millam w/ Premiere Property Group. I specialize in all things Lewis County because it’s where I live, work, & play. I’ve been in the industry almost a decade, much of that time spent setting the bar for customer service, social & digital marketing, and shattering pricing records. I do weekly videos & blogs covering the market, reacting to real estate gurus, educating and informing you to make the best financial decisions when it comes to real estate.
The Most Asked First Time Home Buyer Questions
Here are some of the most asked first time home buyer questions:
- How much money do I need to buy a home?
- What kind of mortgage should I get?
- What are the closing costs?
- How do I find a good real estate agent?
- What should I look for in a home inspection?
- How do I negotiate the price of a home?
- What are the risks of buying a home?
These are just a few of the many first time home buyer questions. It’s important to do your research and ask questions before you start the homebuying process. There are many resources available to help you, including your local real estate association, the Department of Housing and Urban Development (HUD), and the Federal Housing Administration (FHA).
Answers to Home Buyer Questions
After being in the industry for nearly a decade, you might say that I’ve developed some insight into these questions. For that reason, I won’t just leave you hanging with the questions, but I will provide the answers to get you started on the right track.
How Much Money Do I Need to Buy a Home
At the very least, you need $2,000. This is a best case scenario. This should cover your inspection, appraisal, and earnest money deposits, all of which are out of pocket. Realistically, you should also have enough to cover your down payment (0%-5% of the purchase price) and closing costs (2.5% – 3%).
What Kind of Mortgage Should I Get
This totally depends on your situation. The less money you have to get started (see above) the less options you will have. That said, you can buy a home using the USDA loan for 0% down and get your closing costs paid. However, that will limit the types of homes you choose from.
What Are the Closing Costs
The closing costs are what it costs you to purchase the loan. This is how your lender gets paid. Some loans will allow you to roll in the closing into the loan so you pay them over the life of the loan. This is in addition to your down payment, sometimes buyers get that confused.
How Do I Find a Good Real Estate Agent
Umm, hello! You’ve found one, duh. Really, what you want to look for is someone who is highly rated and reviewed, up to date on the market, and is willing to educate you on the process. Many agents are either part-time or too busy & pushy/salesy. If you find yourself working with someone who is not a good fit, just let them know you’ve decided to try another agent.
What Should I Look For in a Home Inspection
Many people believe that home inspections are pass or fail. Honestly, the home inspection is just for your information and is totally up to you whether it “passes” or “fails”. That means you decide if there is something you can deal with or not. There’s also a negotiation period after the inspection where you can ask the seller to address any issues you’re uncomfortable with.
How Do I Negotiate the Price of a Home
You don’t. Your real estate broker does this for you. However, you are the one who decides how you want your realtor to negotiate. You can take their advice or not. Personally, I like to negotiate from a position of strength. This means that I study the market data and know the difference between what homes list at and what they eventually sell for. I also complete a market analysis of the home prior to making an offer so you know you’re not overpaying.
What Are the Risks of Buying a Home
If you ask any realtor, they’ll tell you the risks of NOT buying are much greater than anything you do buy. Overpaying is one risk, but homes appreciate so that won’t matter in a few years. Paying more than you can afford is another risk, but that is more of a financial discipline issue. The biggest risk in my opinion is buying a home that is constantly having problems or has a hidden defect. The solution to that is to get a home inspection and use your best judgement, in conjunction with your team of professionals.
I purchased a home in 2010 in a down market, sold it in 2015 for 60k more than I purchased it for. I then bought a home that same year, put a shop on it, and sold it for DOUBLE in 2018. Then I purchased my current home in 2018 and by 2022 it has doubled in price. That is not normal appreciation, granted, but my current home is worth more now than it cost to buy all three homes. That’s why it’s way more risky NOT to buy.
Additional Tips for First Time Homebuyers
Here are some additional tips for first time homebuyers:
- Start saving early. The sooner you start saving for a down payment, the better.
- Get your finances in order. This includes getting your credit score in good shape and paying down debt.
- Do your research. Learn as much as you can about the homebuying process before you start shopping.
- Get pre-approved for a mortgage. This will give you an idea of how much you can afford and make the homebuying process go more smoothly.
- Hire a real estate agent. A good real estate agent can help you find the right home and negotiate the best price.
- Be patient. Buying a home can be a long and stressful process. Don’t get discouraged if it takes longer than you expected.
Buying a home is a big decision, but it can also be a very rewarding one. By doing your research, asking questions, and building the right team of professionals, you can increase your chances of success.
If this was helpful to you in any way, consider giving it a like and share so more people who have the same questions can see it and consider subscribing to my YouTube channel so you don’t miss any need to know information about our current market. Again, I’m Eren Millam with Premiere Property Group, and remember, never settle for less than extraordinary!
If you’re thinking of buying or selling your home in the west Lewis County area, contact me today! I’d love to hear from you! Eren Millam – Managing Broker Premiere Property Group, LLC WA License No. 26933
Chehalis, WA 98532 | Centralia, WA 98531 | Adna, WA 98522 | Boistfort, WA 98538 | Napavine, WA 98565 | Onalaska, WA 98570 | Rochester, WA 98579 | Toledo, WA 98591 | Vader, WA 98593 | Winlock, WA 98596
Call/Text: (360) 219-3616 | Email: Eren@LewisCountyHomes.com
Check us out on FB: https://www.facebook.com/erenmillamrealtor
Are you a first-time home seller? Take this FREE Virtual Seller Seminar!
Considering selling your home? Get your FREE Market Analysis!