Purchasing your very first home can be nerve-wracking, overwhelming, and exciting. People may think they won’t get approved or they can’t find a home that is right for them. Especially for first-time homebuyers that are interested in buying homes in Austin. The market is very HOT and homes are selling out fast. This guide will help you on your journey of buying a home. Be knowledgable when it comes to knowing how to start and what are the right things to do to achieve your home without breaking the bank. Learn and take all that you read from this article as soon as you’re buying a home or the first time!
1. Work with the Right Agent
A professional and effective real estate agent will guide you in purchasing your new home in any market condition, any season, and not just that, the right real estate agent will help you reduce financial risks!
Finding the right agent that is fit for you is very important. That agent is your partner that will educate, communicate and be transparent with the process. A good agent is someone that has experience in different fields whether it is for home buyers that are purchasing their homes for the 2nd or 3rd time or for first-time buyers. It is best to know how many first-time buyers that agent has worked with, know their experience, know the factors on why can they be the best agent you can work with.
There may be a lot of experienced real estate agents in Austin, but they may not be experienced when it comes to first-time buyers. You will need an agent that will be patient, someone that can guide you, someone, that will help you understand the process of buying your very first home
These good agents will guide you throughout the process. Here in Spyglass Realty, our real estate agents in Austin will guide you throughout the process. We give a timeline with dates so the process doesn’t overwhelm you, letting you know the highs and lows, the busy days that will give you, first-time buyers some ease.
Communication and transparency are factors that are important for a good agent. We will let you know how things are to be done, the costs, fees that are aside from the loan, regular principal and interest, and a whole lot more that people don’t know, our agents will guide you throughout the process.
Your agent is your adviser. The goal of finding the right one that suits you is to take the workload off your plate and help you find the right house.
2. Picking the Right Lender
Picking the right lender is as important as finding the right agent. A lot of people overlook the importance of a lender through the process and how they can dictate how your home buying experience can be. Good agents can recommend a good lender. They can give you 2-3 references of lenders that they have worked with. Now, don’t look at rates when you are looking for a lender with only interest rated in mind. There is a difference between a good lender vs a good rate which will depend on your credit score.
We recommend that you pick a lender that only does mortgages, one that is local. A lender that has its presence and office in the area which makes it more efficient and more closer. There is a lot of stuff to understand when it comes to the process of buying a home, similar to loans. The key here is to find a local lender. Why? Sellers might pick an offer of a buyer that works with a local lender since they feel more confident that the deal won’t fall through. So consult with your chosen agent, and they will help you find the best local lender in the area!
3. Comparing Mortgage Rates
When looking into mortgages, don’t forget to compare quotes from three or four lenders. Homebuyers would get the mistake of asking from only one lender which can lead to wasted opportunities of having another lender that can give you discount points or savings for the first few years of your loan.
Now, if you are close to buying a home, get a preapproval letter. This will give you an estimate of how much the lender will lend you depending on your credit, income, debts, and anything that concerns your finances. The thing here with preapproval letters, it gets easier to present it to a seller that you are serious when it comes to buying a home.
4. Know the Cost Involved
Know your financial situation and understand your credit score. A lot of people overlook the cost of buying a home. There are also costs to bring to the table for closing. Talk to the right agent and the right lender you have chosen, they will help you.
Whatever budget you have that is solely only for purchasing a home, stick to it. Going over the top of what you have without having a backup might hurt your wallet as the process ends. It’s tempting to bid on a home with multiple offers that are above your budget especially in the competitive market in Austin. Homes are going off the market in just a few weeks! The average price for a home in Greater Austin is $305,000.
Remember to stick to your budget. You never know what to expect when there are monthly expenses such as repairs or fees that are waiting for you. Look for homes that are within or below your preapproval amount or budget that is only for purchasing your first home. Better safe than sorry in the end!
5. The Right Neighborhood
There are different neighborhoods and communities in Austin that are perfect for the young, the old, the newly moving in the state, and for families. Homes in Barton Hills, Northwest Hills, and Allandale are great for families. For a vibrant nightlife, living in Zilker, Bouldin Creek, Downtown, or Central East Austin can be great for you. Love natures? Green spaces? Lost Creek, River Place, and Steiner Ranch are perfect! There are also master-planned communities in the area that provides a strong sense of community with highly-acclaimed schools nearby.
Check out fees that you might be paying in the future such as amenities, association fees, maintenance, and more. Search up the area if it has nearby schools, crime statistics, and for shopping, dining, and entertainment centers you’ll be needing as you live in the area. If you think the area is convenient for your children, needs, or job, add that on your list!
6. Knowing Red Flags in Home Inspections
You will eventually pay for a home inspection. The inspector will answer the question of whether the home is worth it or what can be fixed by the seller themselves. Home inspectors can check up on cracks, the air conditioner, electrical panels, the roof, plumbing, and more. These can be negotiated with the seller that can help you save big once you move-in so never forget this step in the process! Check out our broadcast about the Top 5 Red Flags in a Home Inspection!
7. Save Enough for Moving In
That’s why it’s also important having an emergency fund. What you may have set aside can be used for furnishing, repairs, and any improvements in your new home. When you have a tight budget, start the improvement per room or area of your home. Spoiling your entire house can hurt your pocket. Remember to save some for your home! Take time to improve your home. And if that time comes of thinking of selling your home in the future, it will be a great investment that can give you a high ROI!
Prepare your self mentally. Buying a home in Austin can definitely be overwhelming especially during the crazy seasons and of course, exciting, don’t lose that momentum of excitement! Stay involved. Understand the process even if you have gone under contract. Stay in the game. Do not get discouraged if you are competing against other buyers.
Be ready to act and be willing to take the risk. Take that step and jump in. A good agent getting you in front of a lender helping you understand your financial situation. A good agent is going to be patient and take you out even if it’s six months out. You won’t understand the market until you are out there. A good first-time homebuyer agent will take you out there on the market to show you the area you want. This is your price range, are you willing to buy this home, are you willing to sacrifice things?
An experienced and thoroughly trained realtor will be able to help you throughout your entire journey from the start to closing to moving in and even renovating or beautifying your home. Our Austin real estate agents are experts and are the best in the area that will definitely lessen your worries when looking for a home to purchase at any time. We treat homes like our property and we treat our clients like family.
A lot of people think I'm too young, I cant buy, I don't have 20% to put, you can buy, if you are renting $1200 to $2000 a month and you are renting for more than 6 months then you should consider buying vs renting. You can do it. You just have to have the right team behind you.
Are you ready to purchase your FIRST home here on Spyglass Realy? Check out our featured listings or fill-up the form below to speak to a consultant!