| HOME (Click) |
Attention First-Time Home Buyers: How-to's, Checklists, Common Mistakes & More ASK ABOUT THIS YEAR'S ONE-TIME $8,000 TAX CREDIT! Today’s buyer’s market offers a tremendous opportunity for those wishing to become a homeowner for the first time. Home prices are extremely affordable, there are plenty of homes to choose from and interest rates remain historically low.
When you consider the fact that first-time buyers can take full advantage of the cost savings offered by today’s affordable prices, it’s no wonder more than 2.5 million people bought a home for the first time in 2007, according to the National Association of Realtors (NAR). Still, while it must have been clear to so many that the current market offered a great time to realize their dream of owning a home, most probably had the same initial question: “Where do I start?” Weichert, Realtors, one of the nation’s largest privately held real estate companies, offers several steps first-time homebuyers can take to get the ball rolling: Location, Location, Location - The best place to start is by creating a list of the towns or specific communities where you would like to live. Take in to account factors such as your commute, proximity to family, as well as the amenities and activities available in each location. If you aren’t familiar with a location, consider purchasing an area map or take a “Sunday drive” to get a feel for the town. “Windows” Shop – NAR reported that 87 percent of first-time buyers used the Internet during their search in 2007. Start by looking online to get an idea of what types of homes and features appeal to you. Would you like a townhouse or a single family home? Do you prefer a ranch over a split-level? Do you want a home with a brick exterior or siding? Getting a sense of the variety of options available and what you are interested in will help simplify your search later on. Determine What You Can Afford - Once you have an idea of where you wish to live and the features you like, the next course of action should be to figure out your price range. Many real estate Web sites such as Weichert.com offer “affordability and payment calculators” to give you a general sense of what you could afford. For a thorough analysis, however, first-time buyers should sit down with a mortgage professional, such as a Gold Services Manager from Weichert Financial Services, to determine exactly how much they will be approved to borrow from a lender. Real Estate 101 – Before going out and seeing homes, many people find it reassuring to get familiar with the overall real estate process. There are a number of great books, as well as countless online resources, that offer a good overview, First time buyers might also consider attending a home buyer seminar to learn more. Weichert, Realtors offers a free seminar designed specifically for first-time buyers each month in all of its company-owned offices. Finding the Right Agent – Now that you have a general understanding of real estate and what you are looking for, it’s time to find a professional who can show you properties that meet your specific needs. The sales associate you select can also continue to educate you on the overall real estate process and provide you with valuable information on the local market. Some hints for First-Time Homebuyers: Mortgage Help First, be aware that a first-time home buyer is usually defined by a mortgage banker as someone who has not owned property in the past three years. Second: Today, the bottom line is changing - - Interest rates on mortgages continue to fluctuate each month, home sales are slowing, slightly, asking prices are either stable or declining somewhat (not in all sections) in the Stamford area, and rents are increasing. It's a great time to BUY. Third: So-called "qualifying ratios" (the percentage a mortgage bank would like to see of your gross income going toward mortgage payments) have inched upward, so 28% no longer seems to apply. Sometimes as much as 50% can be used, depending on circumstances. Fourth: Some buyer problems with credit are OK today; you still can qualify for many mortgages, though at somewhat higher interest rates. Fifth: The average rental in Stamford is about $1,500. For these sorts of payments, you might be able to afford a $250,000 condo. Sixth: 100% financing, plus additional money for "closing costs," are now possible for first-time home buyers. One program is through the Connecticut Housing Finance Authority (CHAFA) on (860) 571- 3502. They offer three types of programs: 1. Home buyer Mortgages for first-time home buyers purchasing a home in CT, generally at very competitive rates 2. Downpayment Assistance Loans as second mortgages to cover these costs. 3. Rehabilitation Mortgage Loans for the purchase and rehabilitation of an older home. Most of these loans have various income limitations on the borrowers (in Stamford it's approx. $130,000/yr. household income, and various geographic parts of the city (certain of Stamford's downtown and west side areas), which qualify for these money-saving mortgages. There may ALSO be "profit limitations" when it comes time to sell your home. 10 Tips for First-Time Home Buyers 1. Be picky, but don’t be unrealistic. There is no perfect home. 2. Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you. 3. Get your finances in order. Review your credit report and be sure you have enough money to cover your downpayment and your closing costs 4. Don’t wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking. 5. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion. 6. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? 7. Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as type of mortgage terms that suit you best. 8. Don’t let yourself be house poor. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals. 9. Don’t be naïve. Insist on a home inspection and if possible get a warranty from the seller to cover defects within one year. 10. Get help. Consider hiring a REALTOR® as a buyer’s representative. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. And often, buyer’s reps are paid out of the seller’s commission payment. 5 Common First-Time Home Buyer Mistakes They don’t ask enough questions of their lender and miss out on the best deal. They don’t act quickly enough to make a decision and someone else buys the house. They don’t find the right agent who is willing to help them through the home-buying process, A-Z. They don’t do enough to make their offer (bid) look good to a seller. They don’t think about resale before they buy. Please remember: The average first-time buyer only stays in a home for four years, then they trade up of move elsewhere. Reprinted in edited/updated form from Real Estate Checklists and Systems, www.realestatechecklists. com |
Welcome to StamfordRealEstate.biz
| (203) 653-5628 |
| Call Weichert Capital Properties & Estates' Gold Services Manager for Mortgage information: Call Iliad at (203) 869-1326 (English or Spanish) |