Real Estate Education 101: 5 Tips All First Home Buyers Should Follow
In my time at Pacific Playa Realty, I’ve met a lot of first home buyers. It’s an exciting time for them—just as it should be for you. But if you don’t have anyone to prepare you for the journey ahead, it can also be stressful, anxious, and confusing.
In this chapter of our Real Estate Education 101 guide, we’re exploring the 5 tips that can transform your first home buyer journey from huh? to aha!
1. Know Your Limits
Calculating how much home you can afford isn’t fun—but it is absolutely necessary before you start checking out For Sale signs. Traditional lending institutions—like your bank—are likely to look at 3 key numbers:
- Your income.
- Your debt.
- Down Payment.
2. Shop Around
All mortgage lending is going to require a down payment, with some requiring a smaller amount than others. If you’re in the market for a first home in L.A., your real estate agent Los Angeles can help you access local home buyer assistance programs, like those offered by the FHA, or Fannie Mae’s 97% loan-to-value loans (meaning a 3% down payment for approved purchasers!).
Pro Tip:
One of the biggest mistakes I see first home buyers make is going with a mortgage lender by default. Always get a second—or third—opinion when it comes to your mortgage loan.
3. Seek Approval
Or rather, seek pre-approval. Getting pre-qualified—also known in lending as verified approval—gives you the same leverage in the real estate market as a cash buyer. This little document makes you a priority buyer and—in a pressure market—can cinch you the win when you find your dream home.
4. Take Your Time
You’ve established how much you can afford to borrow. You’ve saved your down payment. You’re ready to shop for your dream home, right?
Don’t rush it. Talk to a real estate agent Los Angeles trusts to get the right home for you and your family.
Work out the deal-breakers:
- Which neighborhoods will you consider?
- Do you need garage space—or is that a luxury you’re willing to go without?
- Do you need a workshop or home office—or will an extra bedroom work?
- How many bedrooms do you absolutely need?
- Do schools factor into your decision?
5. Don’t Get (Too) Emotional
This is a hard one. Buying your first home is often about creating memories and putting down roots. It’s easy to get attached.
But remind yourself—or have someone around to remind you—that your first home is also a major life investment, and investments need to be made with your brain. Many a first home buyer has over-extended themselves out of fear of missing out in a seller’s market.
Are you ready to make the move into first home ownership? Talk to the real estate agents Los Angeles trusts—we’re here to help you.
