FIRST TIME HOME BUYERS GUIDE
DO NOT THINK ABOUT BUYING A HOME
WITHOUT READING THIS BOOK
by Tim Beachum
SMASHWORDS EDITION
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Chapter 1: Who Should Read This Book
Chapter 3: Location, Location, Location
Chapter 4: Working With Realtors
Chapter 5: Playing The Housing Market Buying vs. Renting
Chapter 7: Financing Your First Home
Chapter 8: Making A Realistic Offer
Chapter 9: Contracts, Home Warranties, and the Closing
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Chapter 1: Who Should Read This Book
Although this book is entitled, “The First Time Home Buyers Guide” anyone interested in being a homeowner should read it. EVEN IF YOU HAVE BAD CREDIT.
Here is a little secret if you are one of those people who dream of buying a home but fear it because of bad credit. IT IS EASIER THAN YOU THINK TO REPAIR YOUR CREDIT.
I highly recommend that you go checkout this site if you are having credit problems - go now and visit www.A1CreditRepairKit.com. Even if you have horrible credit you can always find an institution that will give you a loan. However that loan will come at a cost. When I say cost... That is exactly what I mean. These institutions will charge you an outrageous interest rate - thats the bad news. The good news is you can start repairing your credit and once you have done that (depending on your contract agreement) you can get your home refinanced at a lower interest rate.
The reason you want to purchase a home does not matter. This book covers the entire home buying process from A-Z, and I was sure to leave no stone unturned. So grab a pen and paper and prepare to take some notes, and lets get you ready to buy a home.
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Chapter 2: Introduction
The mere fact that you are reading this book means that you are ready to take the next step in your life. You are considering buying a home either for financial reasons or your simply tired of spending your hard earned money on rent. For most people this is one of the most exciting times in their lives outside of their first born child.
Although you have reached the moment of your dreams it is important that you have a plan, and do not get caught up in the excitement. I am referring to looking at properties, deciding whether to buy a home or build a new one, and finding financing. Those are just a few of the things that you will be doing that will take up the majority of your time when investing in your first home.
To give you an idea of what lies ahead I have composed a little list:
* Finding the right neighborhood
* Finding a home that is big enough
* Finding the features you are looking for
* Choosing the right size yard
* Choosing a Realtor
* Understanding the housing market
* The ins and outs of home inspection
* Financing
* Making an offer, and
* Reading contracts
The list above does not even scratch the surface of things that you must do such as the decorating, various home improvements, and other decisions that you will have to be faced with when buying a home.
For most people buying a home will be the biggest investment that they will make in their lives. It is only natural to be a bit nervous at first, after all this is new territory for you.
Most people will begin doubting themselves, and asking the question, “am I doing the right thing?” If you are a first time home buyer, you will be nervous about finding the right home, investing money on a down payment, and being approved for financing. After you have bought the home, you may even start to have feelings of regret after awhile. This symptom is so common in first time home buyers that psychologist have even developed a name for it - it is called, “Buyers Remorse.”
Keep in mind that after you have bought your first home it is not like buying a pair of shoes or an automobile where you can take immediate possession. With a home it could take anywhere from two to three months before you will be able to move in. In the meantime, you should plan the following:
* Moving arrangements
* Home inspections
* Yard sales
* Budgeting for paint and other supplies
* Taking time off from work, and
* Finding a lawyer if necessary
You DO NOT want to wait to deal with some of these issues at the last minute. If you plan on doing all the moving yourself it is recommended that you find a few friends or family members that will be willing to help out.
Proper planning will help you transition into your new home much easier than if you wait until the last minute to deal with these details. By creating a step-by-step plan you will also save hundreds if not thousands of dollars depending on where you are moving and how much stuff you have to move.
A New Home vs. An Older Home
Another decision that you will be faced with is whether you should buy a new home or look for an older one. Statistics show that most first time homebuyers usually buy an older home because they fear that they cannot afford a new home. Do not fall victim to these statistics, it is highly recommended that you take the time to visit a few builders to see what they are charging for the size home you are looking for.
It is true that older homes may cost a little less, however they can be riddled with problems. In this book, you will learn what to look for when viewing a home, what to include in your purchase offer, and what to expect from a home inspection. For the most part an older home will only require minor repairs if any.
Which Home To Choose?
Once you have looked at all of the homes, it is time to make a decision. This decision is something that should be based on the facts and not on the words of some fancy, smooth talking real estate agent.
Keep in mind that a real estate agent is nothing more than a sales person who works on commission. In most cases they do not have your best interest at heart, and the more they can make you spend the more of a commission they will earn.
It is better to have a check list of all of your requirements and no matter what stick to the list. It will help you to avoid being sold something that you really do not want just because you were caught up in the moment. Below is a basic list that you can use as a guide, feel free to add or take away anything that does or does not meet your criteria.
* Size
* Price
* Neighborhood
* Mortgage payments
* Repairs, and
* Additional features
While this is a short list, throughout this book you will learn other ways to find your dream home. In the end, you will just know when you have found the right home.
Moving into your first home will be an experience you will never forget. You should be excited as this is a little piece of the world that is just yours. Whether this is the home you will live in for a long time or just for a short time, buying a home will give you a sense of pride and of purpose. Not only will you have a mortgage to pay, you will also be responsible for making the home your own. When thinking about buying a home, you should begin saving your money for closing costs, repairs, and decorating materials.
One of the more rewarding moments will be when you get the keys to your new home and you begin making it your own with a little paint, furniture, and personal style. Do not forget to take pictures to share online for family and friends.
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Chapter 3: Location, Location, Location
Choosing where to live is almost as important as the type of home you want to live in. While this is a very personal decision, there are pros and cons to every neighborhood. But wherever you want to live, you will have to know where the highways are located, grocery stores, schools, and how far from work you will be. Buying a home means more than the structure you will be living in. It is also the community and the accessibility to places and events that mean the most to you and to your family.
Finding The Right Neighborhood
How to be reassured that you have found the right neighborhood. Trust in yourself and go with your first thought, there are many ways to tell. I have listed a few of them below:
* You may feel a sense of calm
* The neighborhood may remind you of a happy memory
* You will be close to places you frequent often
* The neighborhood aesthetics are pleasing, or
* The rest of your family is pleased
When you first turn into your neighborhood, you should feel several emotions. This will be an exciting time, especially if you have been searching for a home for the past few months.
When looking for the right location, you should consider the following:
* How clean is this neighborhood?
* Is this a high crime area?
* What is the average home value in the neighborhood?
* Are there community bylaws?
* What is the home close to?
* Is there garbage pickup?
While these questions may not include everything you are looking for when buying a home, they should be considered carefully as they will affect your life once you move into the home.
How Clean Is This Neighborhood?
Despite what the real estate agent may be telling you, buying a home is not a race. If the real estate agent is trying to pressure you by telling you there is another buyer, do not be afraid to pass on the home.
Take your time and survey the neighborhood at different times of the day. You will want to look and see how others take care of their property. Look for things such as curb appeal on other properties in the neighborhood. Drive around the neighborhood on the weekends to see if you live close to neighbors who like to party all the time. Stop by the police precinct in your area and ask for a police report of the neighborhood. You may have to pay for this report but it is well worth it to know what is going on before you invest your money. If you have a smart phone there are applications that you can purchase for a few bucks that will show you if there are any sex offenders in your area.
If you do download an app for your smart device, do not be alarmed at the number of offenders in your area. EVERY AREA HAS CRIMINALS. I thought I would put that in all caps because I was amazed when I did research on an area that I lived in and discovered there were dozens of criminals that lived within a 10 mile radius of where I lived.
If the neighborhood looks clean and you see people outside caring for their lawns, then you may have found a community of people who care about where they live. This is an important factor if you are planning on living in the neighborhood for many years.
All too often people will buy homes only to discover that they live in a neighborhood where people do not have respect for their property or the property of others. This can make selling the home much more difficult in the future.
Is This A High Crime Area?
I touched on this a little in the previous section. However I thought it was so important that it deserved its own section. It is important to understand that all neighborhoods will experience some crime.
If you are considering buying a home in a high crime rate area due to financial reasons you should proceed with caution. Although the home itself may be the right price for your budget, it may not be located in an area that is right for your well-being, or the safety for your family if you have children etc.
Drive by the neighborhood at night to see if there is adequate street lighting, suspicious activity, or anything else that might cause you to use caution. Research the neighborhood and find out how the crime rate compares to other neighborhoods. If the crime rate is too high, then it may be best to look somewhere else.
You can also go to the website of your local newspaper and enter the name of the area to see if anything comes up. I HIGHLY RECOMMEND that you visit the precinct for the area that you plan on moving to and request a report on the criminal activity in the area.
What Is The Average Home Value In The Neighborhood?
You can find this information out very easily by asking your Realtor or by looking up this information at the county clerk’s office or on their web site. You should be aware of the home values that are in your neighborhood for several reasons:
* Housing prices will vary depending on the neighborhood and region. You want to buy a home that you will be able to make a profit on when you decide to sell.
* You do not want to pay too much for a home.
* Giving a solid offer for the home means knowing what other homes that are similar in size are selling for.
Are There Community Bylaws?
If you are looking at a home that is inside a community, you should be aware of yearly dues, rules about what can be in your yard (pool, lawn decorations, etc.), and any other rules that may exist.
Many people enjoy living in a community because they feel safe and want to meet others in the neighborhood. Communities usually have picnics and other events during the year where neighbors can meet each other. Some communities have pools, tennis courts, and other amenities.
What Is The Home Close To?
When choosing a home, you will need to find the nearest grocery store, schools, route to work, and other necessities that will make living in the neighborhood more convenient.
Drive around the neighborhood to see what is around it. This will help make your decision to buy a home in a particular neighborhood much easier.
Is There Garbage Pickup?
While this may not seem like something you are interested in, when it comes to disposing of your trash, you may need to haul it to the dump yourself. Ask about trash pickup so you can decide if this is something you really want to do on the weekend.
City Life vs. Country Living
Choosing the neighborhood you want to live in will also include deciding whether you want to live in the city, country, or suburbs. Many people with families usually want to live in the suburbs because there is more room for the children to play, and at the same time it is close enough for you to commute to work.
But there are advantages to city and country living as well. Those who live in the city will be close to work, close to restaurants, activities, and events. Those who live in the country may have a longer commute to work, but they will be able to enjoy the peace and quiet of having fewer people around them.
Whichever lifestyle you prefer, you should construct a pros and cons list that will give you a better idea of what to expect when looking for a home. Once you have looked at your list, you will have a better idea of which to choose. The following will get you started:
City Life
Pros
* Easy access to cultural events
* More options when eating out
* More grocery store and clothing store options
* Public transportation
* More people (if you are a social butterfly)
* Choice of home styles, such as houses, condos, apartments, and
* Private and public schools
Cons
* Crime rates higher
* Pollution
* Over crowded with people
* Higher housing costs
* Higher taxes
* Higher cost of living, and
* Not as much housing is available
Country Living
Pros
* More land available
* New homes available
* Less people, and
* Cost of living is lower
Cons
* Fewer schools to choose from
* Further from grocery stores and other stores
* Less people (not good if you enjoy the social butterfly type of atmosphere)
* Not as many cultural events, and
* Longer commute to work
Suburban Living
Pros
* Close to city and country
* More land
* Close to cultural events
* Community feeling
* Best of both worlds depending on demographics
Cons
* More people in a smaller area
* Fewer schools to choose from, and
* Long commute to work
When choosing the type of environment you would like to live in, the following may play a role in your final decision:
* Finances
* Schools
* Size of home desired
* Amount of land desired
* Taxes, and
* Length of your commute to work
You should check out both city and country living. While there will always be pros and cons, you should be able to find a home that will help you lead the type of lifestyle that is important to you and your family.
Making The Commute
You will have to count on the amount of traveling you will have to endure to and from your job when buying your first home. Unless you are relocating, you will have to find a neighborhood that is close enough to drive to or is accessible by public transportation. While some people enjoy sitting on a bus or a train for an hour or two during the day, you may not want to use your time this way. Unfortunately, living in the suburbs or in the country may require you to make a longer commute.
If you want to remain relatively close to your job, you should not search further than a thirty mile radius. You can inform your real estate agent of your needs or you can simply drive thirty miles in any direction and see for yourself what is out there.
Many times there will be neighborhoods you have never even heard of. You should find back roads as well as highway accessible roads that will make your commute easier. This can be accomplished easily using the Internet. There are many sites out there such as MapQuest, Google Earth etc. that can help you map out the best route to your destinations.
You should also look for a home during different times of day to figure out the traffic patterns. If possible, live in an area that goes against normal traffic patterns. That way you will not be stuck in traffic going to work or when coming home.
Commuting to work can easily turn into a forty, fifty, or even an hour long drive depending on the time of day. While this may be inevitable, you should consider all of your options before purchasing a home.
Schools In The Area
If you have school age children, then you will want to find a home that is close to schools in the area. This goes for both public and private schools. If you find a neighborhood that you like, find out which school district it is located in. Not all districts are alike and you will have to send your children to the school district your home is located in.
While your children do not have to walk to school, being relatively close to home will make it easier to pick them up, participate in after school events, and give them a sense of community.
If you are planning on living in the country, the nearest school could be very close to home or very far away depending on where you move. The bus ride to and from school can be an hour or more. This could take time away from getting homework done or playing with friends. Be sure to weigh all of your options when choosing a home if you have children. Also, find out where the middle school and high schools are in the area. Eventually, your children will be attending these schools. Be prepared and find out everything you can about these schools as well.
Grocery Shopping And Other Necessities
While living in the country may seem peaceful, be prepared to do a lot more driving. The nearest grocery store or pharmacy may be thirty minutes or more. This is another factor you will have to consider when buying your first home. While small towns have centralized areas where the shops and grocery stores are located, unless you live in town, you will have to drive in order to get there.
Many people that live in the country will adjust their lives as well as their priorities. They may go to the grocery stores once every two weeks; they will not eat at restaurants as often, and will not go to the movies or other social events as often either. You will have to decide what is important to you.
Before buying a home, survey the town to see what is available. This will give you a good idea of what it would be like to live in an area. Spend a few days there if possible. This will save you from making a huge mistake later on.
If you are planning to stay in the city, you will have the advantages of public transportation, but you may still need a car for larger grocery shops. While the city can be convenient in many ways, parking a car is not one of them. You will have to pay for garage parking in many instances, which will end up costing you more money than if you lived in the country. However, you will be able to get to these stores quickly and easily at any time during the day.
Other Location Considerations
Other location considerations include:
* Weather
* Road conditions
* Location of property in the neighborhood, and
* Room to grow
You should be thinking ahead in terms of the weather. If you are planning on living in the country, for example, you should pay attention to possible flooding, snow, and other weather that could affect you getting to work. If the road is a dirt road, you should ask if the county will clear the road and how often they will do so. This is another advantage of living in the city because you could always use public transportation if you do not want to drive.