Reblogged from Inman News
by Danielle Procopio
Buying a home is uncharted waters for many, but these tips will help you navigate.
Have you heard that 2015 is “The Year of The First-Time Homebuyer”? They’re making a comeback, and builders are ramping up production of homes that they think first-time homebuyers and millennials will want.
If that’s true, 2015 will be a great year. But there’s one problem: Buying a home is not an easy process. Our first-time homebuyer clients have no idea about what goes into the process from start to finish. They can and do make mistakes.
Here are just a few that I’ve identified and some tips on how to help your clients avoid them:
1. Borrowing the maximum amount allowed by the lender and not creating a realistic budget of their expenses
A good amount of research is needed by the buyer to find out what costs come along with owning a home. Some are not prepared for these known or unknown expenses after they sign that contract. Taxes, insurance, association fees, home maintenance, utilities and major/minor repairs are just a few. Knowing what these costs are and budgeting for them ahead of time is important for anyone, but especially the first-time homebuyer. At the first meeting with your clients, include a checklist of these costs in the buyer’s packet, and add some examples of costly surprise home repairs. If they are interested in buying a particular property, ask the seller’s agent to provide the monthly utility costs or call the utility companies for estimates. Some cities even require the utility costs to be included when listing a property.
Visit my website at: www.juliecnichols.com or contact me with any of your home loan questions.