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Here are some tips for all of you first-time homebuyers out there that are beginning your home search!!! This is an article that I actually posted in the NEWS ARGUS Parade of Homes Edition.

Home-price adjustments in our local market and around the country have opened doors of opportunity for many renters. If you are transitioning from renter to homeowner, the prospect of making such a large investment may be exciting, while at the same time a bit overwhelming. But it doesn’t have to be! Be aware, you may be eligible to receive a maximum amount of $8,000 as a tax credit from the U.S Government when you purchase your new home. Therefore, I have provided six common mistakes that all first time homebuyers should try to avoid.

1. Not understanding the homebuying process. Educate yourself. Find a homebuyer seminar that you can attend or research online. The U.S. Department of Housing and Urban Development Web site (www.hud.gov) has an entire section devoted to homebuyers. This section covers some of the most common questions asked by first-time homebuyers, information on mortgage and home-buying programs, downloadable tools such as a home-shopping checklist, tips on selecting a real estate professional, etc. Likewise, Prudential Real Estate’s popular Web site, prudential.com/realestate, offers consumers brand-new tools for the homebuying process, such as free home environmental reports, Value Range Estimates and Property Profiles, among other resources.

2. Not asking questions. There are many facets and intricacies to the homebuying process, so although you may gain a basic knowledge, you will still have questions. Don’t hesitate to let your real estate professional know that you are new to the process. Make sure you choose a sales professional who is willing to spend time with you and walk you through the entire process. He or she will expect you to have questions at each step—from house hunting, to making an offer, and to the closing. Remember, this is one of the largest financial transactions of your life, so you want to have a clear understanding of what’s going on every step of the way.

3. Buying on impulse. Don't feel pressured into making an offer on the first home you see. Buyers, especially first-timers, may be impressed by the first two or three homes they view. Ensure you look at a good selection of homes then list the positives and negatives about each home. Narrow the list of prospects to three or four and then return for a closer look. When you decide to make an offer on a property, work with your real estate professional to get all of your questions answered before making that offer. But don't wait too long! The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a great deal.

4. Looking outside your price range. Before beginning your home search, consider getting pre-qualified to get an idea of your affordability. Use this information as a starting point in determining your price range. Then take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, homeowners insurance, utilities, private mortgage insurance (PMI) and maintenance.

5. Not planning ahead. Think about personal changes you are planning to make within the next five to seven years. For instance, are you starting a family, and if so, is the home large enough and will it continue to be? If this will be a starter home or if you think you’ll be relocating in a few years, you’ll probably want to pay closer attention to appreciation and resale value. If a double-income is necessary to qualify for financing and to make your payments, do your plans foresee an income sufficient enough to continue to fulfill your payment obligations?

6. Failure to focus on location. Don’t just focus on the house. Examine the community. Does it suit your lifestyle? Is the area safe, well-maintained, close to work, shopping, and schools? Find out about zoning and what new construction is planned on vacant land in the immediate area. Also consider the property’s marketability when it’s time to sell.

Above all, remember that knowledge is key and that no question is a silly question. Your real estate professional can be an invaluable asset throughout the process because he or she will be up to date on all of the local market trends. Making smart home buying decisions as an educated buyer will make the home-buying process less scary and your first home purchase a rewarding experience.

For more information or specific questions about the home buying process please do not hesitate to call me, Jeri Lynn Coker Broker Associate, at (919) 920-8633 or email me jerilynn@themcmillengroup.com.