First Time Home Buyers - Savannah Ga

In my opinion it is critical for first time homes buyers to have a buyer agent representing them throughout the process of home buying. There are too many traps and pitfalls, and some of them are costly. A first time home buyer is not only buying a home, they are also getting an education regarding the ins and outs of purchasing a home.

First and foremost, in light of the recent sub-prime debacle, a first-time home buyer needs to fully understand financing. There are many loan products out there, but not all of them are wise choices. For the most part cash is usually the sticking point for young home-buyers purchasing their first home. The down-payment and closing costs on a conventional 80% loan most times is too much for the buyer to handle. This is where the problem can begin, trying to finance as much as possible given the limited amount of cash the buyer has on hand.

During the past few years lenders have offered loan products that cover most of the cost of a home. This can be a good thing or it can be a bad thing. When the buyer is looking in a price range that stretches their budget to the max, and when you add in adjustable rates so that the starting point fits the buyers ability to make the monthly payments, once the rates go up it puts the buyer in a position of financial hardship – add to that life’s unexpected costs, like a job loss where the person has to take another job paying less, unexpected home repair costs, or medical problems , or major car problems, ect, and you have the recipe for default, foreclosures and maybe even bankruptcy.

Most new home buyers want to rush right out and buy a home, but up-front financial planning is important in heading off future disasters.

Make sure you are buying something you can afford. Take all the time necessary consulting with a buyer agent and loan originator to assess your buying power. If you have to start out at a lower price range, that’s fine – you have time to build equity, sell down the road and move up in price range. Don’t try to get all the dream at once - build toward it, realistically and rationally.

You don’t want to waste years under the burden of a huge mortgage payment when you should be using that time to enjoy the money you work hard for.

A good realistic financial analysis will not take that long and it can save you a lot of heartache and headache down the road.

A good buyer agent can help you slow down, put things in perspective and step by step find the right home at the right price with the right conditions. Impulse buying and living beyond means are what you have to avoid in order to make home ownership a pleasure and not a burden.

I will be periodically writing more blog posts regarding first time buyers. It is a very timely topic. Be smart. Don’t become another part of the foreclosure story – it can be avoided by taking your time upfront. Preparation is the key. Don't allow anyone to push you -- simply push back, take your time and do it right.