7 Tips for First Time Home Buyers

Buying a home for the first time can be daunting. But with the right real estate company, you’ll feel supported from an advocate looking out for your interests and goals. So many details go into the whole process that your real estate agent will handle behind the scenes. But what do you need to do? How or where do you begin?

Here are some basic steps to point you in the right direction:

1. Financing—Looking at Your Budget

Knowing your budget’s limit increases your confidence when looking for a home or land. Talk with your bank (or other banks). They’ll look at your saving and credit scores, and will guide you through mortgage options you qualify for. Interview multiple lenders and compare loan interest rates and their fees. Consider what you’ll need (if any) for a down payment, closing costs, and moving expenses. Keep tabs on your monthly budget so you know what monthly mortgage payment you can handle. *First time home buyers may also qualify for a tax break or other assistance from the state.

2. Get Pre Approved—House Hunting with Confidence

Once you’ve decided to buy, you’ll want to get pre-approved by the lending company or bank of your choosing. Being pre-approved allows you to know your target price range and shows the sellers you’re ready to purchase a home. It also gives you confidence when house shopping.

When the market is competitive (as it has been), most seller’s and their agents will require a pre-approval letter of proof of fund to be submitted with any offer. *Once you’ve found a bank you want to work with, do not make big adjustments to your credit (ie., open new accounts, open new credit cards, or add loans). This can adversely affect your credit and result in you losing contracts on your dream house once you find it.

3. Make a Critical Items List—Important Things to Consider

Think about practical or essential items you’ll want to know about any home or land. For instance, in a house you might want to consider: What is the commute to work or local schools? Which school district is it located? What are the taxes and will they be the same at the price I’ll pay at closing? What are the utility costs? Does it have high-speed internet access?

For land, you might consider the following: Are you going to build? Does it have it access to City water, Co-Op, or a well? How much will it cost to get electricity? Is it in a flood plain? Is there a survey or does it need one? Are there any easements I need to be aware of?

Considering these factors and others can help make or break your decision and prepare you for any pros and cons before you buy.

4. The Search Process—Picking an Agent

Be sure that you’ve picked an agent that you feel will protect your interests, keep you in the loop, is patient with you, and is available to show you properties. Remember, they work for you and you want to be sure they are doing the best possible job. You want to develop a working relationship with an agent who is dedicated to your interests and not an agent who leaves you to fend for yourself and expects other agents to do the work.

Begin with deciding on your agent, what you’re looking for and your price point. Then your agent can start the treasure hunt of all the homes in your preferred area! An agent can even set up an automatic search criteria based on your list so as soon as a new property goes active, an automatic email is generated straight to your inbox. Find ones you like? Your agent will schedule you a time to tour them so that you can see your favorites, in person. But good real estate agents do more than that. They also answer your questions about inspections, taxes, flood plains, foundation issues (and the professionals needed), utility info, internet, and a multitude of other concerns you may have along the way.

5. Communication—Telling Your Agent What You’re Looking For

Allow yourself to imagine what you absolutely need or want in a home or property. If a huge walk-in pantry or a wrap-around porch makes you happy, tell your agent. Want a large shady backyard or sparkling pool? Aspire to live in the country or near the lake? Need office space and a large living area with an open floor plan? Tell your agent!

But also, keep your needs in focus and your expectations reasonable. It is your real estate agent’s goal to look for homes or land that check off some of those items and is the best fit for you. However, when the market inventory drops you’ll find less homes or properties available to you. Therefore, you may discover that you’re compromising on some of those items or having to look outside the area for more choices. You can also consider adding those items in the future after you’ve found a property that has potential to be what you want.

6. Make an Offer—Navigating the Negotiations

When you fall in love with a home or piece of land, your agent will sit down and discuss your offer price, financial commitments needed from you, and legal aspects that go into a contract. A good agent becomes your advocate and negotiator, advising you on how to navigate counter offers and closing costs. Once you sign the offer, it is sent to the selling agent and your agent will let you know when the seller responds. When both you and the seller have signed, it’s official—you are in contract!

7. Closing—Jumping the Last Hurdle 

There are a lot of moving parts from the time you get an accepted offer to the day you close. Your agent will hold your hand and cheer you along the way. They’ll work closely with the title company (who draws up all the papers) and the bank to ensure that things go as smooth as possible on your end.

Closing costs and other expenses needed for the final day will be discussed with you to make sure you understand everything that is happening. Buying can be stressful. Full of ups and downs and emotional twists and turns. But a good agent goes above and beyond in working out the details and helping you get through the process. It the end, it’ll all be worth it when you’re handed the keys to your new home!

About the Contributor: Janet Martin Realty is a multi-million-dollar real estate company in Sulphur Springs that works with clients nationwide. In 2021, because of their clients’ trust and repeat business, they sold over $62 million in property throughout North East Texas. However, their greatest success continues to be the strong bonds and relationships they’ve built within the community. It is because of their clients that this team of realtors have ranked as some of the top producers in Hopkins County and are one of the top-tiered independently-owned real estate companies in the local area. The office is located at 1325 South Broadway Street in Sulphur Springs across the street from Starbucks.