5 Home Buying Tips: Buying Your First Home

Thought you learned all you needed to know from “Property Virgins” on HGTV? Here are a few things to consider as you begin to look for you first home.
1) How much you get off the list price does not equal how good of a deal you get. In order to see what really is a fair deal have your agent pull up recent sales from the neighborhood. Make sure to look at only sales from the last few months for homes that are similar in size and condition.
2) Hire the right real estate agent. Ask family and friends for references. You may be able to find an agent online, but that doesn’t mean they will know they area/price range that you are interested in. You want someone who is actively working in the field every day so you can get the best deal possible. For example, if you are interested in purchasing a foreclosure, make sure to ask how many foreclosures your agent has sold in the last year. You don’t want to be the test subject.
2) Shop interest rates. It can be very confusing as you begin your search for a home loan. Remember that rates change every day and the rates different lenders charge may vary as well. In addition, the costs each lender charges to close the loan will vary. You should get at least 2 or 3 quotes. Ask each lender for a “good faith estimate” which will give you a break down in costs so you can compare.
3) Bring your parents if they are going to have input. I see it happen all the time. A young couple will spend months going through homes and when they find the perfect home they bring mom and dad through…and they tear it apart. If they haven’t seen anything else in your price range it will be hard for them to know how other homes in the price range compare. Sure, your $100,000 house has a few cosmetic issues compared to their $250,000 house.
5) Have a home inspection. This is a must for any buyer. Make sure you hire a professional, not just your dad’s cousin’s friend who used to build houses. If you find a major problem, you will be glad to have spent a few hundred dollars up front versus having thousands of dollars of cost down the road. There are no licensing laws for home inspectors in Michigan, so make sure to ask if your inspector is FHA certified.