Tips For First Time Buyers.
It’s equally exciting as it is nerve racking to decide it’s time to purchase a piece of real estate for the first time. And as a professional realtor, I can say wholeheartedly that MOST are just not educated on what to do when it comes to real estate, how to invest your money, and when. This is where I come into play for some of my clients. So I thought I would share some of the tips I give my first time buyers to help them make their decision.
1: Get Pre-Approved.
You won’t know what your buying power is until you get pre-approved. Agents also won’t be so keen to work with you until you have spoken to a lender or two. *bonus tip, interview lenders! Ask your agent if they have someone they recommend. You are also not obligated to do anything once pre-approved. This simply gives you a lens into your purchasing power. PSST, my brokerage, Oasis, has an in-house loan officer who will take a look at your last lender analysis and see if she can get you an even better deal for FREE!
2: House Hack!
If you’re a first time home buyer, think about house hacking. What is house hacking? It’s important to note that any property that consists of 4 units of less is considered residential. Most think that buying a house means a single family residence. in fact, many end up “house poor” because they over paid for a SFR thinking that was their only option. House hack: apply for an FHA loan, (first time home buyer loan) and apply this to a 2-4 unit, where you can live in one of the units, and get income from the others. The caveat to this is that in order to be approved for the FHA, you have to live in one of the units for a minimum of one-year. The other units will pay for your mortgage on the property. After the year, rent out your unit, pull equity from the property to put a down payment of a SFR and let that 2-4 unit generate income year over year. Of course with this hack, numbers have to make sense, and that’s where I come in.
3: Take your time!
The beauty about today's market is the luxury to take your time. Back in 2020-2021, offers were coming in same week, over asking, multiple offers at a time, cash buys, quick close, no time to breathe. Now, we are looking at a normalized market where buyers can really take their time to have inspections, do their DD, and make an offer that makes sense. Find an agent that understands this and works with you at your speed. This will make all the difference. Happy home buying!
