10 Ways Agents Can Help First-Time Home Buyers

The housing market has been red-hot for the past few years, and it’s created some challenges for first-time home buyers. Some of these challenges are practical, like saving up enough to make an offer on a home they can actually afford. Others are emotional, like the stress that comes with competing against other buyers in an overcrowded marketplace. No matter what, one thing’s certain – if you’re a first-time home buyer, an agent can help you navigate the process of buying your first home far better than you can on your own.

10 Ways Agents Can Help First-Time Home Buyers

1) Get pre-approved for a mortgage

First-time home buyers can be pre-approved for a mortgage to help them buy their dream house. In order to get pre-approved, the first-time home buyer will need to provide a lot of information such as income, debts, assets and liabilities. If the first-time homebuyer is able to provide all this information then they are on the right track towards getting their mortgage pre-approval. Once they have been pre-approved, then they will know how much they qualify for in terms of borrowing power so that when it comes to buying their new home or real estate property, it should not be an issue. 

Other ways agents can help first-time buyers include:

  • Bringing potential buyers to view homes.
  • Helping with paperwork.
  • Giving advice on mortgages.
  • Listening to what first-time home buyers want in their future homes.
  • Advising them on neighbourhoods.
  • Talking about schools districts. 
  • Helping with paperwork. 
  • Giving advice on mortgages.

2) Determine what you can afford

first-time home buyers should start by determining what they can afford. This will help you make a realistic budget for your monthly mortgage payments, insurance, and property taxes. The affordability of a home is determined by the ratio of the cost of the home to the buyer’s income. 

In order to calculate how much house one can afford, use this formula: 

(Home Price/Years) x (Monthly Income) =

Determining how much house one can afford is important because it gives an estimate of how much money one needs to put down on the home, plus any other costs that come with purchasing and owning a house. Agents are able to help first-time buyers through this process by showing them listings based on their specific criteria. They also provide education about financing options and give recommendations about which type of loan would be best for them based on their credit score and history

3) Find the right neighbourhood

First, first-time home buyers should consider their commute to work. This can help them find the right neighbourhood. There are many different types of neighbourhoods and the right one for you may not be the same as someone else's ideal neighbourhood. For instance, if you want to live in a quiet suburban area with a backyard, but your partner wants to live in a downtown city loft, that could cause some problems.

4) Consider your non-negotiables

First-time home buyers have a lot on their plates. They are not only dealing with the stress of buying their first home, but also the financial burden of paying for it. For those who lack experience in this area, it can be hard to know where to start. The good news is that agents can help these first-time buyers by providing them with information and resources to make the process as easy and stress-free as possible.

5) Get a home inspection

A home inspection can help identify any problems with the home that may not be immediately apparent. This is an important step for all first-time home buyers because it can also help you negotiate a better deal when purchasing your new home. First-time home buyers often have no idea what they are looking at, so they should ask their agent to help them understand if the house has termites or asbestos or needs foundation repairs or roofing work. 

This will give first-time home buyers an idea of how much money they will need to fix these items and save them from making costly mistakes by purchasing a house with major repairs that need to be done.

6) Make a strong offer

For a first-time home buyer, the process can be daunting. It's full of new terminology and jargon that they might not understand. That's where agents come in. Not only will an agent help them navigate the process, but they'll also help them understand what they're signing and why it matters. They'll help them find their way through any paperwork (or help them hire someone to help), and offer resources for financing or advice about selling their current property before moving on to buying their next one. 

Their expertise is invaluable, so take advantage of it!

7) Have a loan contingency

A loan contingency is a clause in a contract which states that the buyer will not assume ownership of the property unless the buyer is able to obtain financing. This type of contingency is always recommended for first-time home buyers, as it protects them from taking on an expensive mortgage with no backup plan if they are unable to find financing. Help For First-Time Buyers: 1) Obtain preapproval: A good real estate agent can help new homeowners by obtaining preapproval through their lender ahead of time. 2) Shop around: When looking at homes, new homeowners should also get a sense for what types of properties and neighbourhoods might be available to them before committing to one particular offer.

8) Take advantage of tax breaks

First-time home buyers are eligible for some very attractive tax breaks. This can significantly lower their housing costs and make it more affordable to buy. For example, they may be able to deduct the interest on their mortgage from their taxable income. So even if they pay a higher mortgage payment, there will be less money withheld in taxes each month. There are many other things agents can help first-time buyers with, such as understanding how to use a down payment assistance program or how to qualify for an FHA loan.

9) Have realistic expectations

When you're a first-time home buyer, it's important to know that there are certain things that you'll be able to do and certain things that you want. It's also important to remember that this is a learning process and to have realistic expectations. For example, first-time buyers should know that they won't be able to negotiate down the price of the home. However, they may be able to request something like a dishwasher or fireplace if the house doesn't already have one. First-time home buyers should also ask their agent for help finding information about homes in their price range as well as more expensive ones so that they can figure out what feels right for them.

10) Use an experienced agent

An experienced agent can help first-time home buyers by taking the time to walk through the process and making sure you're well informed. They'll also be able to help you: 

  1. Understand the process of buying a home 
  2. Find a lender who will make it easy for you to qualify for a loan 
  3. Research neighbourhoods that suit your needs 
  4. Figure out how much the house can really afford 
  5. Get you prequalified for a mortgage. Getting pre-qualified is an important step in getting ready to buy a home since it determines how much house you'll have access to based on your budget. The more income and assets you have, the more money lenders are willing to lend you.