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Tips For First Time Buyers
Hey everyone, welcome back to my blog. This blog is about educating regular people about the home buying or selling process. I hope my short, informative blog will help give you insight and provide you with value as you make the decision to buy or sell in San Antonio. I strive to help everyday people make their dreams become a reality.
Here are some tips for the first time home buyer!
1. Understand how long it takes to buy a home - I always tell my clients to give them selfs at least 2 months to find a home, if you are renting you typically have to give notice before moving out (30 or 60 days). When searching for a home assume it's going to take you a month to find the right home, once we go under contract it will be another 30 days to close on it. That being said if you think you are 6 months out from being ready, in reality, you are closer to 4 months.
2. Do your research - Ask your self the following questions, "why" are you wanting to make a move, how much money do I need to save? When should I talk to a lender? Answering these questions will help you prepare when the time comes, of course, I am always here to help answer any questions you have.
3. Figure out where your ideal home will be located - What school or school districts are you looking for? Is it close to your work or hobbies? These questions are often overlooked, the last thing you want is to be stuck in an area that does not work out for you. If you are unsure of a certain area, I suggest driving by at night.
4. Be prepared to compromise - Depending on your criteria, and market availability you may have to compromise on what you are looking for. (Location, yard size, garage size, etc) Identify your "MUST HAVES", and everything else will be a bonus!
5. What fees do I need to worry about? - There are a few fees through-out the process you will be responsible for, but one you do not have to worry about is my commission. In the state of Texas, the seller will always pay me, making my representation 100% free to you.
Down payment - this fee is paid at closing when financing the purchase of your first home. Depending on your loan type this is typically 3%-20% of the sales price, as a first-time buyer I always recommend an FHA loan this will give you a down payment on the lower end.
Earnest money - This is considered "good faith" money, paid 1-3 days after your offer is accepted this fee is 1% of the sales price. This fee will be applied to your loan amount at closing. If you decide not to buy a particular home after going under contract you can get this money back if we are still in your "option period".
Option Money - This fee will give you the above mentioned "option period", this fee is typical $10 a day and is paid along with the earnest money. I always recommend a 7-10 option period, in this time we will have the home inspected, and negotiate any repairs needed before moving forward. If you as a buyer decide to back out of the deal during this time you will get your Earnest money back but will lose the option money. If you as a buyer decide to back out after the option period ends you will forfeit the earnest money as well.
Inspection - During the "option period" I always recommend having an inspection done on the home, this is going to give you an idea of any repairs that may need to be done, and help you decide if you want to move forward. This fee does vary depending on the inspection company and age of the home, I would plan on this being in the $350-$450 range.
Appraisal - this fee is to have the home's value appraised to insure your lender can finance the amount you are buying the home for, this fee is typically in the $400-$500 range as is either paid when ordered or added to your closing cost.
Closing Cost - is a combination of your down payment, lender and title fees. These can vary depending on the sales price of the home, or any seller credits we may have negotiated.
I strive to help everyday people make their dreams become a reality. For more information regarding the San Antonio market, feel free to shoot me a text or email.
210-480-6226 | email@example.com
Listing and Buying Specialist in the San Antonio, and surrounding areas. I strive to provide the best service possible to my clients. Whether it's finding the right home, or selling your current home ....