He’s a professional band leader who’s been at ease performing “oldies” in front of large crowds for several decades. But at 52, he’s still a novice at the art of buying a home. And the process seems overwhelming.
“He keeps asking me the question: `What do I do next?’ ” says Linda Cutter, an agent with the Re/Max realty chain who is representing the band leader in the purchase of his first home.
Though few mortals buy enough properties in a lifetime to get a tight grasp on the process, first-time buyers are especially baffled by the steps they must go through, according to Cutter.
“Almost everyone has the sense of taking on something bigger than they can absorb,” she says.
Are you heading for your first home purchase and would you like to move forward with a feeling of confidence? Then these pointers could prove of value:
– Find a guru in the real estate field.
“You want someone who doesn’t just sell homes but helps people understand them,” says Cutter, who is affiliated with the Residential Sales Council, an educational group for agents and brokers.
There are many former teachers in the real estate field, and they often make excellent guides for first-time buyers. But agents from many backgrounds may relish the task of bringing a new buyer up to speed.
“First-time buyers are fun because they come to you without any baggage from past deals,” says Gene Gallagher, a broker for the ERA chain.
How can you recognize a true guru when you meet one? He’ll respond to your questions and listen conscientiously to your comments, Gallagher says.
– Find a mortgage lender willing to answer all your “silly” questions.
Human beings, of course, aren’t born with an intuitive understanding of how to take out a home loan. Nor do most people get instruction on the topic in high school or college. Therefore, it’s perfectly understandable that you’ll need a primer on mortgages to make the right decisions-especially now that home loans are available in such varied forms.
Becoming “pre-qualified,” for instance, involves sitting down with a lender to determine how big a house payment you can afford and whether your credit record makes you worthy of a mortgage. The time to see a lender is before you’ve selected a home.
Do you have a long list of questions about the way the home-buying process happens? Well, don’t be afraid to pose them to any mortgage lender or real estate professional, says Cutter. “There is no question too small or ridiculous.”
– Count on friends and work associates for their counsel.
Sure, you can pick out names of agents and mortgage lenders from the phone book. But finding people with your best interests at heart can be far more tricky, says D.J. Doss, a seasoned agent with the Century 21 chain.
Talk to those around you who’ve already purchased homes. Do they know the names of agents and lenders blessed with the patience and empathy needed to work with first-time buyers? If so, use their referrals as the basis of your selection.
– Do a “dress rehearsal” in advance of your actual home purchase.
One reason the home-buying process seems so stressful for many people is that they’re unfamiliar with the turf. And it’s not until crunch time-when decisions have to be made and documents signed-that they’re forced to learn complicated concepts quickly.
How can you prep yourself in advance? Ask both your lender and your real estate agent to walk you through all the basic documents involved in a sales contract and mortgage well before the heat is on to sign the papers.
“Too many people have the `Gee, what do we do next?’ feeling when they buy a house,” says Gallagher.
– Never forget your importance in the cosmic order of things.
Many first-timers harbor feelings of self-doubt. Having never been through a home purchase before, they may feel they’re at a disadvantage compared to the home sellers and professionals who are more experienced in the ways of the market.
But the reality is that as a first-time buyer, you can climb the learning curve quickly. And the important fact to understand is that you play a crucial role in the system. Unless you buy his home, the tradeup buyer won’t be able to move on to his second or third purchase, points out Gallagher.
And with buyers’ markets now prevalent in many American communities, you should feel all the more empowered. Chances are good that the seller of the home you select needs you more than you need him.
“You’re at the bottom of the food chain. Without you, the big fish can’t do what he wants to do,” Gallagher says.
