First Time Home Buyer?

If you’ve never purchased a home before, the entire process can be intimidating, especially for a young person.  As you prepare to make the biggest purchase and one of the biggest commitment of your life, there’s some topics that are very beneficial for you to know as you’re shopping for a house. This knowledge is very helpful throughout your journey towards home ownership.  

The Noelke Team of Dave and Laurie is here to HELP YOU through the home purchase process.  We won't to push you into a home purchase that you may regret.  We want to help you find the house that's right for you.  And then help you GET that house.

1. You Don’t Pay A Real Estate Agent’s Commission as the Buyer

Don’t be afraid to contact an agent!  So many first time buyers wonder, “do you have to pay a real estate agent if you are buying a home?” For some, the thought of having to find extra cash when they are already doing all they can to save for their down payment could be enough to make them walk away from the entire process before they even get started. Many are surprised to find out that the answer is actually “no.”  A home buyer does not pay their agent, rather the agent earns their commission from the seller side of the transaction.*  The agent will, however ask for your commitment, in the form of a buyer-agency agreement.  Agents invest a lot of time into helping a buyer find the right house, and make sure that all proper documentation is taken care of for a smooth transaction.

*As with anything exceptions may apply. One example where this may change is a For Sale By Owner (FSBO). To be certain of what the payment structure will be, speak with your agent as soon you begin working to discuss payment/commission.

2. Focus on Your Monthly Mortgage Payment, Not the Entire Purchase Price

Getting pre-approved for a mortgage is the first step you should take as a first time buyer. A common mistake that people often make is focusing on the total price of the home they can afford instead of the monthly payment they will be making. You may get approved for a $350,000 home, but this may not necessarily be what you can truly afford, or are comfortable paying monthly. Think of the amount your advisor suggests you can afford as a range. There is a high end and a low end and it is your job, not the mortgage advisor’s, to figure out what you are comfortable paying each month. Good advice is not to purchase a house for the maximum amount that you can afford monthly.  Save some flexibility in your budget for unexpected expenses.  It is crucial that you work with your advisor to understand how your down payment amount, credit, the current mortgage rate, as well as the house’s property taxes affect your monthly payment.

3. Go for It!

Go for it!  From saving for a down payment to finding the “perfect” home, there are many factors in the first time buying process that are going to make you feel nervous.  All of those feelings are natural.  Some first time buyers may get cold feet, or drag their feet, and in the meanwhile, the house they wanted received an offer from another buyer.  You are always going to wish you had more money in the bank.  You wished that the home had a backyard that was just a little bigger.  There wasn’t a master bathroom or walk-in closets.   You’re just not quite sure what direction your life will be taking in the next several years. If you feel comfortable with the payment, love the location and “bones” of the house and will feel proud to make this house a home, then take the leap and don’t look back. The cosmetics on the house can be updated.  It’s a building process, and an experience that you’ll be glad you did.  Because when it’s time to upgrade to the next house or to re-locate, you’ll have the wealth of experience and knowledge and can buy and sell your next journey in confidence.