Five Essential Tips For First Time Home Buyers
Five Essential Tips for First-Time Home Buyers
1. Getting preapproved is the first step to buying a home. Why?
This way you know your price range. A pre-approval letter with any offer is essential. You'll know what your closing costs will be and how much cash you'll need to close. This includes the outside of closing expenses as well. What are outside of closing expenses? Inspections, sometimes the appraisal, deposits for utilities and moving.
2. Sign a Buyer Representation Agreement.
With a Buyer Representation Agreement, you are hiring a Reata Realty Sales Consultant who is a highly trained real estate professional to represent you in the complex process of buying a home. Without this agreement in place, we must represent the seller by default according to the State Of Texas. The same is true when you call a listing agent from a yard sign, an online ad, or new construction salesperson. A salesperson or listing agent represents the seller, not you. The good news is the seller pays for your buyer agent's brokered commission.
3. Be available.
In our current market, most homes under $400,000 will sell within one to two days after coming into the market. You must be available to view a home and, if you decide to, make an offer as quickly as possible after it is listed. This is very important if you you really want to buy a home.
4. Don’t go buy anything!
After you are pre-approved do not buy anything that is not completely necessary. The rule of thumb is - don't buy anything over $500, especially on a credit card. Such purchases will affect the "debt to income ratio" the lender used for your pre-approval, possibly resulting in losing the loan and the house. The underwriter will be pulling your credit 2 mores times before closing. They check debt to income ratio or (DTI) and they your verify employment.
5. Set realistic expectations.
You will likely spend 30 to 60 days looking at homes, making offers on multiple homes before getting a home in contract. Your sales consultant we be with you every step of they way. It's easy to get frustrated, DON'T ! Once you get a home under contract, it will take 30 to 45 days from contract to close. Your Reata Realty sales consultant is your best advocate, and they will hold your hand through the entire process step by step and timeline this will mitigate the feeling of being overwhelmed or confused.
Buying a home is a big deal especially your first time. We understand that. This is not like it is on TV. Looking at 3 homes and then pick one and it's perfect. This is real world stuff and hiring us gives you a guide to make your dream of home ownership a reality.