FAQ’s for First-Time Homebuyers

October 09, 2024

For those who have decided to purchase their very first home, the excitement can quickly be overshadowed by confusion. Navigating this process often involves learning on the fly and many future homeowners are unsure of where to begin. While it is recommended to speak with a real estate agent or neighborhood sales consultant, it is also possible to gain apt knowledge with a bit of pre-work before jumping into the real estate market. 

The Rodney Carroll Team understands just how difficult it can be for buyers to enter the real estate market. 

What would we recommend for first-time homebuyers?

• Take Your Time! Unless time is truly of the essence, slow down! Take the time to tour homes and neighborhoods while exploring local amenities. Your first home should not only be located where your family will thrive but also check as many of those “must-have” boxes as possible. For new home buyers, that checklist is likely still being formed. Taking the time to tour a variety of options will help clarify wants versus needs. 
• Financial Facts: Many first-time home buyers enter the market without a thorough understanding of the big financial picture. 
  • While banks may pre-approve a favorable purchase number, that number may break down into monthly payments that cause a financial strain. 
  • Pre-approval is terrific for understanding a ballpark budget and showing sellers your intent, but buyers typically should aim for a lower price point than that pre-approved number. 
  • Credit Scores count! Mortgage interest rates are significantly impacted by credit scores–so much so that it may be beneficial to clean up a lower credit score before starting the home-buying process.
  • The higher the downpayment, the better. Saving for a downpayment may lengthen the buying timeline, but may be worth it to pad that initial financial investment. Why? A higher down payment may remove the need for Private Mortgage Insurance, reduce monthly payments, and decrease interest rates. 
  • When determining a final home-buying budget, many forget to include the costs of maintaining their home. Utilities, homeowner’s insurance, and real estate taxes (and more) all should all be factored into the numbers. 
• Market Clarity: Having a firm understanding of your new community’s real estate market is just as important as knowing how much you can comfortably invest. 
  • Interest rates are typically at the forefront of “when” the perfect time is to purchase a home. If rates are higher than you’d like, you may opt to wait out the market until rates come down again or, if you can’t, buy with the intent of refinancing when rates do drop. Pay attention to market predictions and trends so you will be ready to take the leap when the timing is more favorable.
  • Inventory can drive home prices up or down. Does your desired neighborhood sell more homes in a specific season or is its inventory stable throughout the year? The real estate market tends to come alive toward the end of the school year as the summer offers convenience for family moves. If that isn’t relevant for you, you may opt to buy in the fall or winter when more homes are available. Should your move take you to a newly built community, lot choice or variances in project length may drive your purchase timing. 
  • Researching plans for a specific region is a great way to get a peek at the potential of a specific neighborhood. Details on new restaurants or shopping areas are typically available via county websites, from community sales offices, or local real estate agents. 
• Leave it to the Pros: While the age of the internet has turned many into armchair realtors, first-time homebuyers should absolutely engage an actual professional to aid in the process.
  • Find a real estate agent before you find your dream home. The best agent is one that you will work well with, whom you trust, and who will be your advocate. Interview several and choose the best fit before you start scouring the home sale market so that a relationship is already established. As you progress, your agent will be your go-to for any questions or concerns, always at your side through negotiations and closing.
  • Many new-home communities have an onsite sales office ready to answer all of your questions. Interested in a specific neighborhood? Don’t be shy! Stop by the sales office and get to know them. You will learn about available lots, construction timelines, plans for the area, and more. You may even find your dream home!
  • As you secure your pre-approvals, sit down with a few lenders. It is important to understand the many mortgage types (fixed-rate, adjustable-rate, FHA, etc) and lenders can explain them in layperson’s terms while making suggestions specific to your needs. 
• Flexibility: While no one wants to hear about flexibility during the search for their first home, it is incredibly important. 
  • Whether opting for new construction or pre-owned, the chances of finding everything you need in one property are slim. Be flexible!
  • Clarify “wants” versus “needs.” Create a list of priorities beginning with true must-haves. For example, you may need five bedrooms but want each to have hardwood flooring. Your “wants” list should house items that you are willing to adjust after purchase. Don’t forget to include neighborhood requirements such as convenient schools or access to major transportation.
  • Buying a home is much like dating. You may have to see several candidates before your best match is found. This may take longer than planned and involve more tours than desired, but the result will be worth the wait. 
  • Not feeling flexible? If you're set on meeting both “wants” and “needs,” then building new could be your answer. A custom home puts first-time buyers in the driver’s seat throughout the design process.

Once you have found the perfect home and have an agreed-upon sale price, there is more to be done. 

• Do not skip the inspection! This could reveal critical issues that will affect the future of your home and wallet. Issues revealed on the inspection are not necessarily deal breakers and may even help in lowering the purchase price.
• Do a final walkthrough. Before closing, take one last peek at your future property to ensure that nothing has changed, and the home remains in the agreed-upon condition.
• Closing Day! This is a wonderful day! Schedule ample time as there will be quite a bit of paperwork. Make sure you have all the requested documents with you. Typically, your real estate agent will be present and able to answer questions as they arise. 

For those buying their first home, it is a time filled with excitement and challenges. Making it easier starts with education, understanding, and flexibility. The Rodney Carroll Team excels in helping first-time buyers find the perfect home and in educating them along the way. Starting a homebuying journey for the first time? Reach out to the Rodney Carroll Team today! We’d love to build a relationship with you!