If you’re a first-time homebuyer, I’ve created this quick guide for first-time homebuyers.
On this page, I’m going to share some general tips for homebuyers.
If you need a mortgage, talk to a lender and get a preapproval. Realtors often say, “You wouldn’t go shopping without your wallet.” When buying a home, you need to know how much you can afford. Also, you will need to present a lender letter with your offer, so it’s best to have it ready. If you don’t know a lender, ask your agent or ask a friend.
Find a good agent to represent you. Make sure you find someone with some experience. Or, if you want to take a chance on your friend or family member who is a newbie, make sure they are working with a mentor/agent who is experienced. A careless mistake in a real estate transaction can end up costing you thousands or tens of thousands.
Once you find a good agent, listen to them. Your agent probably has a lot more experience in the current market than you do. Ask a lot of questions, but listen to their advice. A good salesperson is not someone who will convince you to buy. They should be someone who can educate and inform you and help you make a decision that you are comfortable with.
If you can get a home inspection, get one. A home inspection is an out-of-pocket cost for a buyer, usually around $300-$700. A home inspector will take a very thorough look at the home and create a list of needed maintenance/repairs. If you have a home inspection contingency, you may be able to negotiate some repairs. In the rare case your home inspection comes back squeaky clean, at least you’ve bought yourself the peace of mind that you’re getting a solid home. NOTE: Even if you are buying new construction, I would 100% still recommend a home inspection (pre-drywall and prior to settlement). Just because the home is new does not mean they didn’t make any mistakes. I’ve never been to a home inspection for new construction where the home inspector found nothing.
If you are waiving the appraisal contingency, make sure you have money to cover a potential appraisal gap. Make sure you understand the risk of waiving an appraisal contingency. In some cases, you can get a PIW (property inspection waiver), which means you don’t need an appraisal. However, if you do need to get an appraisal, ask your agent for comparable sales and about the risks of a low appraisal. You may need to bring a lot more cash to the closing table if the appraisal comes in low.
Expect to get a little buyer’s remorse or cold feet right after you ratify. Most people get a little anxious after they ratify. Buying real estate is a very big decision, and many people may second guess their decision. If there is a legitimate cause for concern, let your agent know. If not, know that your nerves will probably settle down in a couple days or a week.
Understand the market that you’re in (seller’s market or buyer’s market). If you are in a strong seller’s market, you will have to waive many, if not all, contingencies. Things can shift very quickly. If you find yourself in a buyer’s market, ask your agent what your options are in terms of contingencies and try to reduce your risk.
If you have time, try to attend some open houses on your own. The more homes you see, the more you’ll understand what you like and don’t like. You’ll also get a better idea of pricing, neighborhoods, and the market in general.
Be patient, but be ready to move quickly when you find something you like. When you’re searching for a home, take your time and feel free to look at as many homes as you need to. But when you find something that you like, be ready to act quickly. Time is of the essence in real estate. Many times, speed will determine whether or not you can make the deal happen. That’s why it’s so important to get everything in order before you go shopping, like that lender pre-approval letter.
Prioritize location over (almost) everything else. You can change many things about a house, but you can’t change the location. I’ve heard of many stories where a buyer will buy a beautiful, spacious home much further out but will then move closer in because the commute or drive times were too long. Time is valuable.
Check out the bigger ticket items when you look at a house. If you’re interested in a home, make sure you check out the age/condition of the HVAC (heating, ventilation, air conditioning), hot water heater, roof, windows, doors, and the kitchen/bathrooms. Owning a home requires regular maintenance, and some of these items can be very costly.
Look for signs of water damage or any areas that may be susceptible to water damage. Water damage can wreak havoc on a home and your wallet. Check for water stains, rust, mold, soft spots, etc. If you see anything, let your agent know immediately. Make sure your yard is graded in a way that water does not travel toward your home.
Make sure the layout works for you. Don’t just look at location and square footage. Be sure the layout will work for you. Sometimes, walls can be taken down, but if you have to make major structural changes, the house can easily become a money pit.
If you can, drive around the neighborhood at different times of day and talk to some neighbors. Sometimes, homes can look or feel different at different times of day. An empty parking lot midday can become overcrowded in the evening. Talking to neighbors or people walking around can give you some great information that you won’t find in the listing description.
Don’t apply for any new credit for make major purchases until after you close. Getting a new car payment or financing a large purchase can affect your ability to get a loan. In some cases, it can prevent your loan from getting approved. Wait until after closing for these items.
Don’t change your employment situation until after you close. If you plan on moving jobs or leaving your job, wait until after you close. Again, events like these can also affect your ability to get a loan.
Enjoy your new home!
I am a licensed realtor serving the northern Virginia area, including Fairfax County, Loudoun County, Arlington County, and the surrounding areas. If you’re looking to buy or sell, feel free to reach out to me at realtordannylee@gmail.com or @realtordannylee on Instagram/Facebook/TikTok.