By Patrick McCarran
Real Estate Broker
It is a good time to buy. While it is not quite a buyers’ market, inventory is up and Sellers
are in the mood to negotiate. Values have come down a little in some markets compared
to last year’s market. Interest is holding mostly steady and highly unlike to drop
anywhere near post-recession levels. The tip for interest is that if you buy now and it goes
up you are locked in lower and if it goes down you can refi and get a better rate in the
future, so its win-win. Rents do not show any sign of coming down and so the time to buy
is now.
The home buying process can be overwhelming, but if you go into it prepared, your first
purchase can be a good experience. Here are some things to consider before making the
plunge.
Getting a mortgage—You miss 100% of the shots you don’t take. Fear of being
rejected for a home loan is one of the main concerns for first-time homebuyers and the
biggest hurdle to making the purchase. Don’t let fear of the unknown stop you from the
first step in building your future. You have nothing to loose and everything to gain by
calling a lender and starting the approval process.
Mortgage Payments—The costs involved in the purchase of a home may seem
overwhelming to first-time buyers. However, with the help of your lender and Realtor,
you can calculate out how much they you be able to pay each month in mortgage
payments. It is important to remember that rent can continue to increase (even in rent
control cities) but with a fixed mortgage it is stable. Property taxes and insurance may
increase monthly however these are largely predicable and significantly smaller that rent
increase can be.
Down-Payment—The down-payment amount varies slightly depending on the
loan you qualify for, Conventional can be as low as 3%, FHA 3.5%, and VA 0%. There
are many programs and grants that will cover the down payment and sometime closing costs. You can also ask the seller for a closing cost credit. Again you only lose if you don’t play, CALL A LENDER.
Making offers—Don’t be afraid making an offer on the first home you see. This
is a common mistake of many first-time homebuyers. If you know what you want and
you find it, go for it. However it is perfectly fine to view different homes to get a feel for
the marketplace. Make the decision that feels right for you. The market is moving quickly
so speed is of the essence. The most important thing is not to get discouraged if you don’t
get the first offer or even the 5 th one accepted. One thing that experience has taught me is
that when it is meant to be it will happen.
Condition of the Home—Buying an ugly home is often another fear of first-
timers. While a home that needs major repairs can become a costly venture, a fixer upper
can be a great value and often will not have the multiple offers. This is where hiring a
home inspector will be beneficial. The home inspection will help explain whether it is
largely cosmetic or a major repair and that way, you know what you are getting into. This
can be done as a contingency of purchase so you can cancel without penalty if you find
the condition overwhelming.
Yes, purchasing a home is a big undertaking, but it doesn’t have to be a hassle. If you’re
even a little serious about finding your home, give me a call and we find a time to sit
down together, openly discuss your options and set up an action plan for either for now or
in the future. My process is client friendly, and my goal is to give you’re the information
and let you make all the decisions.
Patrick McCarran is a local Realtor and Broker DRE# 01325072. He can be contacted by
phone or text at (925) 899-5536, pmccarran@yahoo.com or www. CallPatrick.com. An
independently owned and operated office. In association with Realty One Group Elite
DRE# 0193160. Equal Housing Opportunity.
