first time home buyer - owner loan

Cecilia Sherrard asked:

There are probably few things in life that are as exciting–or as nerve-
racking–as the search for a house. All the good emotions and the bad
emotions seem to converge when the house hunting begins. Don’t
worry, this is a normal reaction, and is found in seasoned home buyers
as well as those who are looking for their first home. Buying a home for
the first time can bring many questions. Ideally, it would be best to
meet with me in my office or even go over your questions on the phone
before starting the process. I have put this page together to explain the
beginning stages.

Many first time homebuyers go through the (Renting vs. Owning)
process. If you’re currently a renter, you certainly are aware of the
money that you spend monthly and the fact that none of it comes back
to you. You also know, when the water heater goes out you just make a
phone call! There are pros and cons of course. Owning your own home
brings new responsibilities along with a positive financial outcome. It’s a
long-term investment. You can take advantage of tax credits,
appreciation, and your home’s equity down the road. When I rented my
first home, I remember wanting to do certain things to the home
including changing the carpet color. My landlord said ‘no’ They wanted
to keep it ‘neutral’ for a future tenant.

I also remember going to the
local animal shelter to get a kitten. (I already had one cat, which was
okay. I was lucky to have that.) The shelter had to phone my landlord
for permission! There I was holding this kitten and already falling for it,
only to be told ‘Sorry your landlord said no.’ I had no idea the shelter
required owner’s permission, and I had never talked with my landlord
before about getting a ‘Second cat.’ So I gave the cat back, and was
completely humiliated. I felt like they were calling my parents! Yes I was
young, but I knew then, I needed to have my own home. Freedom was
my deciding factor. I now have a boat on my front lawn, hot pink
carpet and 37 cats. (Okay, I don’t really have a boat.)

One of the first decisions you need to make is whether you want to do
your house hunting on your own. If you decide to go it on your own,
you won’t be represented and may not be seeing ALL the homes on the
market. If you contact agents for a particular home either by the sign
out front, in an ad, or going through an open house, remember, the
agent selling the home represents the seller’s best interest not yours. If
you decide to use an agent, have your own (Buyer’s agent.) You
certainly wouldn’t call upon the prosecuting attorney to represent you
in your defense or answer your questions. The more I know about your
situation and needs, the better I can assist you. There is no contract to
sign while working with me. No fees, no strings attached. That is why
it’s important to utilize my negotiating skills and knowledge of the
market.

Once the decision to buy a home has been made, take the time to
prepare before you go on your home search. Yes, it is very tempting to
rush out and actually look at houses, but to do so without full
preparation can be both disastrous and expensive. You will find that
“house hunting” is down on the list.

Get your financial affairs in order first! I can’t stress this enough–it will
save you an enormous amount of time, aggravation and heartache.
Determine what your budget will comfortably allow and stick to it. Don’t
spend yourself into a ‘house poor’ situation.
Get pre-approved for a mortgage. This will not only give you a clear
idea of how much a lender will approve you for, it will make your home
buying process a great deal easier (and save a lot of time later). I can
provide you a list of reputable trustworthy lenders. (There are a lot of
lenders out here, not all created equal.) I often hear people mentioning
pulling their credit and worried about losing points, when they aren’t
even sure they will be buying a home. With so many loan programs out
here, people sometimes don’t realize that they can actually afford more
or less than they thought. Having your credit checked can also bring up
any mistakes/errors that you can start to fix now and have solved before
purchasing.

Get familiar with the different housing types available to narrow your
search. Determine your minimum requirements as well as any desired
additional features and your needs and wants. Prepare a ‘Must haves’
list.

Take note of any items that you don’t want in a house.
Determine the desired location (schools, work, public transportation,
etc.) It’s important to narrow down the areas you are interested in as
much as possible. Drive around, check the cities local websites, look
into area schools and tax rates.

As you are looking, use a scorecard to compare homes. A scorecard is a
great tool when it comes time for comparisons (and for remembering
which home had which features!)

When you find something you like, your agent should pull recent
comparables (Similar homes that have sold) and research the property.
This way you know the true value and what an appropriate offer would
be.

Maintain your perspective–and your cool! You may find your perfect
house on the 1st day–or the 50th. The important thing is to get the
home that is best for you! Remember also, I’ll be with you every step of
the way. Many of my past clients can testify that I am addicted to
foundations, plumbing, electrical, roofing and the ‘guts’ of a home.
Through the years I’ve attended enough inspections and classes to
detect potential areas of concern. Make sure your Realtor is educated on
the mechanicals of a home.

I can help find flaws in a home, recommend certain repairs, give a basic
estimate of work needed, give you pointers on finding a house with a
good resale value, and provide you with a list of professionals from
insurance agents, to home inspectors. (Reasons to work with a good
Realtor.)

I believe good sound advice, personality, experience and genuine care
for my clients is what sets me apart and is the reason I receive referrals
from happy home owners.

I don’t consider what I do sales. I think of it as private representation,
counseling, advocacy, and helping people achieve the dream of
homeownership. If your agent ever makes you feel ‘sold’, pressured, or
something just doesn’t feel right in your gut, get a new one!

Cecilia Sherrard

Realty One-Cleveland Ohio

Laurie