First Time Home Buyers

Obtain Pre-Approval: While knowing how much you can afford is the first step, sellers will be much more receptive to potential buyers who have been pre-approved. You’ll also avoid being disappointed when going after homes that are out of your price range. With Pre-Approval, the buyer actually applies for a mortgage and receives a commitment in writing from a lender. This way, assuming the home you’re interested in is at or under the amount you are pre-qualified for, the seller knows immediately that you are a serious buyer for that property. Costs for pre-approval are generally nominal and lenders will usually permit you to pay them when you close your loan.

Create List of Needs & Wants: Make 2 lists. The first should include items you must have (i.e., the number of bedrooms you need for the size of your family, a one-story house if accessibility is a factor, etc.). The second list is your wishes, things you would like to have (pool, den, etc.) but that are not absolutely necessary. Realistically for first-time buyers, you probably will not get everything on your wish list, but it will keep you on track for what you are looking for.

How to Select a Professional Realtor? 

Across Marin County there are hundreds of realty brokerages and real estate agents and brokers and the competition may be intimidating at first. Many buyers will interview several real estate professionals before selecting one with whom to work and this is a great opportunity to consider such essential qualities like training, experience, representation and professional certifications.  Buyers should use all the resources that they have to select their realtor including referrals, the internet, testimonials and regional experience. 

Be Objective: Instead of thinking with your heart when you find a home, think with your head. Does this home really meet your needs? There are many houses on the market, so don’t make a hurried decision that you may regret later. 

Be Thorough: A few extra dollars well spent now may save you big expenses in the long run. Don’t forget such essentials as:

• Including inspection & mortgage contingencies in your written offer
• Having the property inspected by a professional inspector(s)
• Requesting a second walk-through to take place within 24 hours of closing.
• You want to check to see that no changes have been made that were not agreed on (i.e., a nice chandelier that you assumed came with the sale having been replaced by a cheap ceiling light)

Title insurance: Purchased with a one-time fee at closing, title insurance protects owners in the event that title to the property is found to be invalid. Coverage includes “lenders” policies, which protect buyers up to the mortgage value of the property, and “owners” coverage, which protects owners up to the purchase price. In other words, “owners” coverage protects both the mortgage amount and the value of the down payment.