First Time Home Buyers

Congratulations on your decision to buy your first home! This is a great time to buy with interest rates at an all-time low! As your REALTOR, our job is to not only educate you but to make the buying process as easy as possible. Over the years we have helped lots and lots of 1st time buyers.
 
You're excited, but at the same time anxious. The home buying process can be overwhelming, but if you go into it prepared, your first purchase can be a good experience. Once you have read through the information below, we recommend you contact us for a home buyer consultation.
 
This service is FREE and takes about an hour. Whether you are buying now or in the near future, we guarantee you will walk away with a much better understanding of what you need to know about buying a home. Here are some things to consider before making the plunge.
 

Do I need to be pre-approved for a mortgage?
Fear of being rejected for a home loan is one of the main concerns for first-time home buyers. To lessen the stress, you may want to get pre-approved for a loan before looking at prospective homes. This will not only help you feel more confident, it will also give you an advantage when there are multiple offers for a specific home. The fact that your loan has already been approved is of great value to the seller: because it shortens the purchase process and there is less of a chance that the buyer will back out of the sale. 


How much is my mortgage payment?
The costs involved in the purchase of a home can be overwhelming to first-time buyers. However, with our help, you can calculate out how much you will be able to pay each month in mortgage payments, and from there, what prospective homes offer a feasible payment plan. 

How much is my down-payment?
The down-payment amount varies depending on the value of the home you choose and your mortgage lender. And in some cases, first-time home buyers can purchase a home with no money down. Although it varies from state to state, most offer government-funded programs for first-time buyers that help people buy a home with no down-payment. As your Buyers Agent we will be able to explain the different options available to you. 

How much are my closing costs?
First-time buyers often forget to consider the closing costs when making an offer on a home. Paying closing fees plus the down-payment can add up to quite a sum to raise before the final papers can be signed. However, a smart first-time buyer takes this into account before making an offer, and with our professional help, the costs can be estimated in advance.

How do I make an offer on a home I like? Don't feel pressured into making an offer on the first home you see. This a common mistake of many first-time home buyers. Make sure you view different homes to get a feel for the marketplace. When you do decide on a home to make a bid on, we will work with you to get all of your questions answered first before making an offer. But don't wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.

Do I need an inspector?
Buying a "problem" home is another fear of first-timers. A home that needs major repairs can become a costly venture. After you have an accepted offer to purchase a home, we highly recommend that you hire a home inspector. That way, you know what you are getting into.
 
Are there special gift programs for the 1st time buyer?
Are there special programs for 1st time buyers?
Yes, there are several programs available and you may be able to get a sizable grant toward your purchase. However, many items play a part in determining which program is best for you. Let us help you contact our mortgage specialist for details.
 
How much money will I need?
This depends on the type of financing program. We can help you determine these amounts during the consultation. You'll need to cover:
1. down payment
2. closing costs
3. pre-paids and escrows (these include taxes & insurance)
 
Do I pay the Realtor?
No our service is FREE to you. The seller pays the fee plus we do not charge closing transaction fees as many companies do.
 
Will I save money going through the listing agent? 
No, in fact the listing agent usually represents the sellers best interest. Their job is to make sure the Seller gets top dollar. You need someone to represent you during the transaction through Buyer Agency.
 
Should I get pre-approved for a mortgage?
Yes you can contact us for assistance in finding a first-time home buyer mortgage specialist. They'll meet with you and explain the various programs available. Many lenders do this via the telephone but leave out many important items. Many lenders specialize in refinances and do not know the programs available for first time buyers. The mortgage specialist will educate you on the process.

Should I use One Realtor?
Yes, otherwise you will see the same homes over and over. Real Estate agents belong to the MLS (multiple listing service) which gives them access to ALL homes currently on the open market, regardless of who has it listed. You should hire one agent to represent you and only look at homes with that one agent. To learn more about how Buyers benefit by working exclusively with one agent click here.

Do I need good credit?
Mortgage companies use your FICO score to determine what type of program you qualify for. Some programs allow lower FICO scores and some simply just raise the interest rate.

Renting vs Owning?
If you own a home you will save a significant amount of taxes plus build valuable equity.

There are no silly questions
Above all, remember that there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction. As your Buyers Agent, we can be an invaluable asset in helping you make educated decisions so that your first-home purchase is a rewarding experience. 

Contact Us 
We are sure you have many more questions and we would be happy to answer them. If you would like to set up your initial consultation, give us a call anytime at 319-339-7721 or drop us an email at Vermace@VermaceRealty.com.

 

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Licensed to Sell Real Estate in Iowa