First time home buyers insights and tips to succeed

first time home buyer Sacramento

First time house buyer’s journey from dream to home

Everyone’s dream home is different. All the preparation of finding the right neighborhood, knowing the correct price range and having a clear picture of the house wanted now come together in finding the right home. No matter how much time you spend on researching and educating yourself about your home purchase, it’s hard to cover every detail. Here are a few tips for avoiding rookie mistakes with your first home purchase.

Finding the right home

An objective view point can help find the right home: You’re likely to fall in love with a home, and that can make it difficult to take problems seriously. Bring along a skeptical friend or family member who can give you an honest opinion. There is more than one way to understand what you are looking for in a home. The article Home Buyer’s Real Estate Guide will go into more detail.

Learn the financial issues with buying your first home

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The financial issues associated with buying a home are the reasons why most people succeed or fail. The down payment is the biggest issue to many renters who want to be first time home buyers. Even if you think you’re years away from buying your first home, try to start saving for your down payment. The down payment presents the biggest obstacle to home ownership for most buyers, especially first-time buyers. Veterans can get zero down VA loans. It makes a huge difference in your monthly payments, and helps avoid paying Private Mortgage Insurance. Read about the financial issues in the The Home Buyer’s Financial Guide.

Shop early to find a home loan

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Shopping for a mortgage lender is one of the first actions to take when thinking about buying your first home.  There are countless resources out there that can help you get the best terms for your mortgage. It may seem like a lot of work to shave less than a point off your mortgage rate, but it’ll save you thousands in the long run.

Learn the home loan process

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One big mistake many first-time home owners do is buying the stuff that goes into the home before the property closes escrow.  Be patient with big purchases for your new home or you may lose the deal. A big purchase before you close your home can cause the lender to not fund your new mortgage loan. You’ll be anxious to make your new home your own, but take some time to see how your budget truly shakes out. In other words, hold off on big furniture purchases and remodeling projects.

Buying a Home Starts with You!

Find the right neighborhood to buy your first home

Make sure you’re happy with the neighborhood before you buy your first home. Finding the right neighborhood is the first and most important question to answer for the first time home owner. The house may be perfect, but don’t discount the surroundings. You don’t want to end up in the suburbs if you’re going to miss walking to your favorite coffee shop, and you don’t want to settle for the city if you’re looking forward to some peace and quiet.

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How much you can afford for a house will impact what neighborhood you can call home.

Where to live is the first matter to consider for first time homeowners. The first time homeowners ask the precursor question. What is important in an area we want to live? That creates all the conditions a neighborhood must have to be the best area to live.

The following is a list of issues of where to live. Individualizing them will create a matrix that has value in determining where to live. Establish the priorities of the neighborhood’s wants and needs that you want to make the first place to purchase your home.

Location

The neighborhood’s location to family, friends, work, play and other important locations often trump all other concerns.

Transportation Issues

Check mass transit if this is an important issue. Check commute times and problem issues like choke points and freeway access. Parking can also be an issue for family gatherings and other social events. If the property has an HOA, check into the bylaws about these issues.

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Crime and Safety

Check out crime statistics by neighborhood. Also check the Megan’s law data base to see how many sex offenders are in the neighborhood.

School system

Check out the actual property address to see in which school district it belongs. Do not assume if it is in the neighborhood of the correct school that it is in the correct district. Also a much sought-after school system raises your property value.

Dan was awesome through every step of the home buying process. my wife and I had no idea what we were doing, but Dan simplified every aspect of the deal. We really liked that Dan didn’t over pressure us into making some decisions. He explained the pros and cons and let us make the decisions based on our priorities. Would definitely recommend Dan to others.

Fair Oaks home buyer

Dan was an excellent resource in helping us buy our first home. He took the time to explain all the complexities of the transaction, and he was always available to answer questions. I don’t know how we could found the home we did, and get such a great deal if it wasn’t for his help. I would definitely recommend him to anyone how needs to buy or sell or get a lone. Thanks Dan.

Rocklin home buyer

Types of houses

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Check out the houses in the neighborhood to see if they are the correct type single-family home, one or two story, 2 or 3 car garages and much more. Not every community has a variety of house styles. Making a house a home is one of the most important values of home ownership. The freedom to create living spaces that meet the needs and desires of the family enhance quality of life for the owners. Learn more about home types here – 7 home spaces that make a house a home.

Parks and community centers

Checking out how far and what they offer can increase or decrease a neighborhood’s value. Check out dog parks, skate parks and other specialty parks if that is important to your life style.

Amenities

Check out walking distance conveniences.   Look for shops, restaurants, bars, coffee shops, gas stations, food stores and much more. Many factors play into truly loving where you live. Check out some of the things to do in Sacramento.

Neighborhood associations

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Are there CC & R’s? Are there HOA’s? Finding out what they are before moving in can solve many problems. Buying real estate in California has many issues. Some of the misunderstood issues in my experience are CC&Rs and HOA’s. Many home buyers in the Sacramento and Placer counties don’t know about these issues until they make an offer on a property. Often the cost of CC&R’s and HOA’s can create real problems with the transactions. It is the best practice to learn about the CC&R’s and HOA’s before making an offer or looking for homes in that community. Learn more about these issues here – 3 critical property issues: CC&R’s, HOA’s, and Mello-Roos. 

Neighborhood warning signs

Look for abandoned buildings or vandalism. If the community goes downhill, so does the house’s value. Also check for unpleasant smells.

Other issues

This list is not all encompassing. In addition, there are many individual needs to specify in a general list. Add as many as needed to create the perfect neighborhood criteria to begin the search for the first home neighborhood. You can get creative and check local real estate investor if they have a property for sale.

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The home buying process is a way to go from wanting to own a house to actually buying a home. The journey ends when you find and buy your first home. There are more memories to make in the place you call home.

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Free-home-checklist Sacramento

What is important about location in real estate? A real life example.

Elk Grove home area sold

When the location has a family of people already there.

One story about the area “We loved this house. Never in our lives had we ever lived in a place where every neighbor on our court was not only friendly, but became like family. I can recall times when our garage door was left open by mistake, or our dog needed to be let inside during a sudden rainstorm, or our trash cans needed to be rolled to the curb when we were on vacation; and our neighbors always looked out for us and were available to help take care of whatever we needed.”

The close proximity to the park, gym, shopping, and our favorite restaurants was a serious perk. We walked everywhere, which gave us an excuse to slow down and enjoy the moments together.

Having the gym across the street felt like having our own community clubhouse, and we sometimes would walk over just to swim or enjoy the sauna. Date night? Sounds like a nice walk to Mikuni to me. We also really enjoyed the number of nearby walking trails that let us wander through nature without even having to drive to get to the start of the path.

Our backyard was also so serene, and never too noisy, even though the main road was nearby. I loved the mature trees that bordered the fence and made it feel like our own personal haven. We enjoyed meals with friends in our pergola, and celebrated family parties on the patio.

Our court was private and homey, as the road to get to it is only used for the residents that live here. We always loved how safe we felt to enjoy time with our neighbors and daughter in the front yard.

Learn how we can help you find the best neighborhood..

Two Important Considerations for First Time Home Buyer

First time home buyers are wise to buy with the end in mind. Thinking ahead in these two significant areas can pay big dividends in the future. Consider properties that will have a strong resale value and correctly evaluate the total cost of repairs and remodels.

The first important consideration for first time home buyer to know is buy with re-selling in mind.

Home owners should plan to stay in the first home for a while to build equity and to maximize investment advantages.  The fact is that few people remain in their first home forever. First homes are often used as spring boards to future, more valuable real estate purchases. That is why it is especially important to consider resale value when selecting the first home.

Analyze both the local area like Sacramento or the foothills of northern California and the house. Is the area stable or being revitalized? Is the area becoming a less desirable place to live? The trend of an area is crucial to understanding where property values are heading. The investment mantra “the trend is your friend” applies to real estate as well.

The house style and floor plan can have a big role to play if the property will gain in value or not. Pick a floor plan and house style that will look forward. If it is dated at the time of purchase, it will only grow more dated. The hope that retro styles will create value is a long shot.

Considering the future value of a property when buying the first home will help create value when looking for the next home.

The second important consideration for first time home buyer to know is know your abilities and limits.

Many first-time buyers choose homes that need remodeling and put in “sweat equity”. Sweat equity is work the new home owner performs themselves. While this can be a great idea from an investment standpoint, it can create financial and personal stress.

Home repair and remodel projects rarely come in on budget or on time. They can create a great deal of stress for new first time home owners. The idea that the house is worth more than when they brought it may be little comfort after all the hard work and frustration of DIY (Do It Yourself) projects.

Truthfully assess current abilities, time constraints, money, and commitment level when it comes to renovation work. If professionals will be needed, make sure to accurately project how much their services will cost?

Ask the hard questions, will the needed improvements be good investments? Or will it run the risk of over-improving the property when compared to surrounding homes?

Doing quality due diligence before buying the first home can create real value for the home owner. Knowledgeable real estate agents like Dan Parisi can be a great benefit to first time home buyers. He can help with understanding local areas like Sacramento and the gold country foothills in California. First time home owners can create more worth in their home when they are ready to upgrade.

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Sacramento and Placer County Home buyers

How to begin looking for a home can create problems. Each person has their own priority of what is important. For some it is where to buy a home in Sacramento or in Placer County. Others, it is the must haves of the house the wants, needs and must have list. Coffee Real Estate works with home buyers to find the right home for them. Let’s begin the process today.