The first-time buyer’s guide to real estate

Jim McKinley wrote a blog that I’ve made slight edits to below. Let me know what you think!

Buying your first home is exciting, but it can also be full of confusion, fear, and apprehension. After all, buying a home is a huge commitment, and if you’ve never done it before, there can be a lot of questions. However, by getting informed and preparing yourself appropriately, you can avoid many of the common pitfalls of buying your first home and step into this new stage of your life with confidence. To help everything go as smoothly as possible, follow these tips and tricks.

Get your Finances in Order

Many people might assume that it is time to become a homeowner based on their life situation, such as recently landing a well-paying job. However, no matter where you are at in your life, it takes quite a bit of financial preparation to correctly prepare for buying a house. First and foremost, you need to ensure that you have a solid budget. Some people might encourage you to put this off until after you buy your house, but your budget is an indispensable tool to figure out how much home you can afford. Secondly, save up a reasonable down payment. According to the Motley Fool, squeezing out enough money for a down payment might require a lot of expense cutting. We recommend using a savings calculator to help you figure out how much you’ll need to save each month.

Get Pre-Approved

Before you even begin to look at houses, go to some lenders to get pre-approved for a mortgage. This is not as scary as it might sound and can take a lot off your plate later. To be approved for a mortgage, the lender considers your credit score, how much you make, the amount you put down and your debt-to-income ratio, among other things. There are many different financing options available and a good lender will advise you accordingly.

Find a Great Agent

A good real estate agent can provide you with huge benefits when it comes to looking for your home. The housing market and lingo can be confusing. When you work with a real estate agent, they can advise you on how to write the best offer and discuss the current market so you can focus your energy on searching for a home. According to The Balance, an agent is a great asset; they can ask questions for you and obtain disclosures. Real estate agents are particularly helpful for first-time homebuyers who might not be aware of the home-buying process and a good referral source for reputable lenders.

View Houses in Your Area

Now that you have all the preliminary work squared away, it’s time to start looking at houses. Preferably, you’ll want your real estate agent to set up showings based on your criteria. Your agent can point things out that you might have missed and help gauge whether the home is listed for a good price.

Image result for house for saleNegotiate your Closing Costs

Once you find your perfect house, you need to close the deal. There are fees tacked on to buying a home called closing costs. Everything from lender fees, title insurance to title search fees. To the average person, these can begin to sound like a second language. You can shop a rate, but many lenders will quote you the lowest rate of the month, because until you lock in a rate, it is a moving target. Look to reviews and potentially how smooth your closing will go. Review your Loan Estimate closely and ask about all fees you do not understand. Once you understand everything, negotiate with your lender for lower fees.

Move

Give yourself more than enough time to pack and move to prevent yourself from rushing. If you hate packing, you might even want to consider hiring a moving agency. If you have children, you might drop them off at a family member’s house to give yourself a couple hours of uninterrupted packing.

Home buying is an exciting, nerve-wracking process. By following these steps (and hiring the right lender and agent), your can home-buying process will be a lot smoother.

The 2017 Walnut Creek Citizens Institute

A few years ago, I participated in the Walnut Creek Citizens Institute classes. It was a great experience educating me about the ins and outs of the way the city runs Walnut Creek, and a way to get involved with various city initiatives.

Credit: walnut-creek.org
Credit: walnut-creek.org

For those who haven’t heard of it, the Citizens Institute is a 7-session class that includes tours, presentations and Q&A gatherings with City Council members, the City Manager, the Police and Transportation departments. It gives a good chance to get up close and personal with those who make decisions for our town.

Topics for 2017 will include city finances, getting to know the WCPD, the role of public works and how to improve one’s quality of life in Walnut Creek. The final class meets on Apr. 1 for a graduation of sorts, including a neighborhood showcase and lunch.

broadway_plaza_shopping_center_-_walnut_creek_california

If you live in Walnut Creek or are thinking about moving here, it’s a good opportunity to further increase your knowledge of this wonderful city and how it operates. If we learned anything from the Presidential election, it’s that every level of government is essential and it is important to be involved and participate!

If you want to join in 2017, the sessions will take place from 6:30-9:30 p.m. every Thursday from Feb. 16-Mar. 30. There is a $25 fee, which you can pay on the first day of class. For more information, check out the details here.