First-Time
Homebuyers: Tips For Surviving the Spring Frenzy
 If you've been waiting to get through the holidays and closer to
warmer weather before beginning the search to buy your first home, you're not alone. The
traditionally busy spring real estate season is just around the corner, meaning heavy
competition looms. But there are things you can do as a potential homebuyer to get a head
start.
The number of home sales in 2002 shattered records with 5.56 million existing and
979,000 new homes sold throughout the country, according to National Association of
Realtors chief economist David Lereah. Home sales this year are expected to dip slightly,
but remain robust.
So with that in mind, many indicators point to a strong sellers' market in parts of the
country this spring, meaning the competition to buy may be fierce. It's already gaining
momentum in some regions.
There are some things you can do to improve your chances of landing in a home,
including:
Get a copy of your credit report. Potential lenders will view your credit history - how
much debt you've accrued, how many accounts you have open, whether your payments are made
on time, etc. - to determine whether they'll give you a loan. There are three credit
reporting companies: Equifax, Experian, and Trans Union. You should get a report from each
company to make sure they're accurate and clear up any problems before you apply for a
loan or make an offer on a house.
- Determine how much you can afford. Don't consider how much a bank will approve you for,
but how much you can afford given your other bills, expenses, and long- and short-term
savings goals, including retirement, college for the kids, vacations, etc. Lenders
generally say your mortgage should be about 25 percent of your gross monthly income.
- Figure out how much you have for a down payment. NAR says first-time buyers typically
make a down payment of 6 percent on a home purchase, and 24 percent of down payment funds
were gifts from relatives or friends. If that's not an option, there are many loan
programs that accept down payments of 5 or 3 percent.
- Research on the Internet. Look at the Metro Listing Service to find houses you like in
neighborhoods you're eyeing. This will also give you an idea of how much sellers are
asking for listed homes.
- Start interviewing agents so you'll have a good one when the time comes to start
looking. Get referrals and select someone who knows your market and the neighborhoods you
prefer. A good agent will notify you as soon as a home that fits your criteria goes on the
market and stays on top of the listings on a daily basis and calls you the minute a good
match shows up, especially in communities where homes are listed and pending sale in the
same week, or even same day.
- Pin down the basics, specifically the neighborhoods you like that will accommodate your
family's needs, including commute to work, schools, recreation, shopping, and, most
importantly, are in a price range you can afford.
- Have an open mind. It's easy to start looking at houses and get discouraged because you
don't see anything that matches your vision of the perfect house. But be open to a home's
potential. Remember carpet and flooring can be replaced, walls can be painted, and a
dreadful kitchen can be updated. Think about whether the floor plan will work for your
family.
- Find a qualified inspector. You'll want to find a qualified professional affiliated with
the American Society of Home Inspectors or American Association of Home Inspectors to
examine your Heating and central air conditioning systems, interior plumbing, electrical
systems, the roof, attic, visible insulation, walls, ceilings, floors, windows,
foundations, and basements are among the key inspection points. Inspections may also
include appliances and outdoor plumbing. The inspector will provide a report and if there
are any major problems, they can be negotiated with the seller. Or you can back out of the
deal altogether.
Written by
Michele Dawson
I
can help? -- Let me show you how!
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