It’s important that first time home buyers in the Kansas City area work with a knowledgeable Buyer’s Agent who is an expert on the real estate process. A great buyer’s agent will take the time to answer the many questions that first time home buyers have in today’s market. Buying a home is unlike any other purchase process and it’s not one that comes with instant gratification. There’s a process to follow and pitfalls to be avoided. There’s a myriad of details to go over including questions about the home search, resulting real estate negotiations, inspections, closing process and more.
First time buyers need to understand the difference between listings that are Pending, Show For Back Offers and Contingent. They’ll need to understand the loan pre-approval process and the difference between locking in or floating their loan interest rate. Home buyers need to understand the difference between homeowner’s insurance and a home warranty and understand the timing involved with each. There’s a lot of questions that will need answered as a first time home buyer navigates their way through the home buying process.
First time home buyers will need to determine… What style of homes are most beneficial? What areas are most convenient for work and play? Is the desired community in a realistic price range? There’s great excitement in buying a first home and the process requires having a plan to ensure the buyer makes a sound real estate purchase and finds a home they’ll enjoy for years to come. The historical appreciation that has come with homeownership is well documented and there’s nothing like the pride that comes with home ownership.
There is also the mortgage interest deduction benefit that homeowners receive yearly when doing their income taxes. Without going into complicated math, a homeowner who makes a $1000 mortgage payment gets to “write off” as a deduction the interest portion of their mortgage payment, while a renter who is making a similar $1000 rent payment gets no such benefit come tax time. This could mean a homeowner making a $1000 really is really making a couple hundred dollars per month when the tax benefit is factored in, compared to just renting.
The basic home buying process…
- Buyer meets with a buyer’s agent to start the process.
- Buyer gets pre-approved with a local mortgage lender.
- Buyer’s home search parameters are clearly defined.
- Start viewing homes and narrow list of possibilities.
- Make an offer to purchase a home and go under contract.
- Conduct home inspections and deal with inspection negotiations.
- Order home appraisal and finalize buyer’s loan process.
- Do a walk-through at home prior to closing to ensure things are in order.
- Schedule signing of closing documents and release of home keys.
- Move into your new home!