Perhaps one of the greatest accomplishments in life is purchasing a first home. Consumers are more budget-conscious than ever and want to make sure they are making smart choices when it comes to their hard earned money. Despite the fact that the current housing market in Hampton Roads is ideal for real estate novices, 1st time buyers are still nervous.
Here are several questions first time buyers have, along with the corresponding answers:
Q: How much will my monthly payment be?
A: The easiest way to figure this out is to talk to a lender. Most people don’t contact lenders because they don’t want relentless sales calls afterwards. This is where a Realtor can really help. For the most part, they are not going to put you in touch with someone that is going to reflect poorly on them. Lenders are accountable to agents which make up the majority of their referral base.
Q: How much of a down payment will I owe?
A: Again, a lender is a great resource for information about all aspects of the loan process.
Q: How do I use my VA benefits to get a 0% down loan?
A: This is a great question for a lender with experience with VA loans. The VA is also a great resource and can be found online at va.gov.
Q: How much are the closing costs?
A: This all depends on what a good Realtor can negotiate. Closing costs can be substantial, but in today’s market sellers are more willing to pay some if not all of the buyer’s closing costs.
Q: Once I find a home, how do I put a contract on it?
A: This is easier said than done. There are forms online that will give you a basic idea, however, there are several factors that are specific to Virginia as well as additions that need to be added for your protection. A good Realtor has the experience to navigate all of these issues as they have done this many times. Practice makes perfect and experience is invaluable!
Q: How long will it take before the house is officially mine and I can move in?
A: You officially get the keys to the castle on the closing date. Be prepared for inevitable delays in the closing process. There is a lot to get done in a short amount of time.
Q: Are short sales and bank-owned properties the only good deals out there?
A: Short sales and bank owned properties can be a great deal. They can also be your worst nightmare. You need to be very diligent and savy to weed out the bad apples from the bunch. You typically only get one shot to take a look, especially with foreclosures, but with a little luck you can get a good deal.
Q: Do I need a buyer’s agent?
A: The simple answer is yes! An experienced agent With at least ten years of extensive experience in the area is essential to making your first home purchase a pleasant one. Most of the time the buyer’s agent is paid at closing by the seller. I personally have only had 3 clients out of nearly 600 pay a portion of my fees in their closing costs. Each of them had the choice and all three have been longtime clients who have made several purchases and sales with our team.
Before starting a home search with Erin, it’s important to understand the 8 steps in the buying process. Likewise, first time buyers can learn more about the key players involved in a real estate sale and their designated roles.
Step 1 | Step 2 | Step 3 | Step 4 | Step 5 | Step 6 | Step 7 | Step 8
