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Recent statistics have shown that 40% of all current transactions in the real estate market are first time homebuyers. A few reasons for this statistic are the $8000 Home Buyer’s Tax Credit and the abundance of low-priced inventory. You are probably not surprised that single women are the fastest growing segment of the real estate market. In fact, they are buying homes at more than twice the rate of single men, buying one out of every five properties sold in the U.S. With interest rates at near historic low levels and prices that have dropped significantly over the past few years, there hasn’t been a better time to buy in the past few decades.

This is the first part in a three-part series walking you through the entire home/condo buying process. Along the way, I will provide some tips and suggestions that you can follow to ensure a successful transaction and a very happy home purchase. Buying a home is the most important and most expensive purchase most people will make in their lives so going into the process blind is a mistake you will not want to make.

one:

The absolute first thing I recommend 100% of my clients to do is speak with a trusted mortgage broker. If you don’t know of one, ask your friends, family, and colleagues. Anyone you know that has purchased a house in the past few years should be able to recommend one for you. Because of the recent mortgage fraud running through the U.S., make sure that your contact had a positive experience with them. My clients usually speak with at least two mortgage professionals. The mortgage interest rate that is quoted is always important but it will most likely change by the time you find your condo. You should definitely consider the quoted interest rate but choose the broker you feel most comfortable with because interest rates will not fluctuate greatly from broker to broker.

The mortgage broker will ask you questions about your current job, run your credit history, and ask you how much money you are willing to put down as a down payment at closing. All of these things will have a significant impact on the mortgage rate you qualify for. It is very important to speak with a broker early on in the home buying process because if your credit score can be improved or if you know you need to save a little more money before buying, it can positively affect your interest rate and the purchase price of the home/condo you can afford.

two:

Once you have narrowed down a purchase price with your mortgage broker the next step will be finding a location. If you have been living in the city for years and know where you want to buy, choosing a safe location is easy. But if you are new to a city or exploring neighborhoods in your current city there are a few things I suggest to my young professional females to make sure the neighborhood is safe.

• Drive or walk around your neighborhood at different times throughout the morning, day, and evening.
• Test out the public transportation, if it exists. See what the best and fastest routes are to work, grocery stores, and your favorite restaurants.
• Spend a weekend day in that neighborhood so you can test out some local food, entertainment, etc.

three:

When you have narrowed down your price range and location preference, your next step will be to choose a respected realtor to help you find your dream home. I highly recommend asking friends and family for referrals. If someone had a bad experience with an agent, they will never recommend them. Your realtor will most likely set up a time to meet and discuss your complete situation, likes/dislikes, needs, and wants. Along with price range and location, be prepared to answer questions about how long you plan on owning the condo, if you have any preferences of construction (new, vintage, fixer-upper), number of bedrooms/bathrooms, and if you need parking.

Refrain from narrowing down your search too much unless you absolutely need a particular trait in a home. If you can’t go without a washer/dryer in your unit or hardwood floors, tell your realtor. If you think you can either add them at a later date or go without, I would suggest not limiting your search. You would hate to miss a great home because the washer/dryer hasn’t been installed or hardwood floors haven’t been added. You can do all of these improvements at a later date. I would rather have a client see a home without that trait and then rule it out, than never see it at all. All of these questions will help your realtor narrow down your options so that they can find the right home for you.

After the realtor feels they have a good idea of what you are looking for, they will set you up an automated MLS (Multiple Listing Service) home search. All of your parameters (price range, bedroom, bathroom, unit features that are a must, location preference) are entered into a database that runs a few times a week. You will be able to view pictures of the homes, read the description of the properties, make notes, mark your interest level and ask questions from within that database. The realtor will be able to read your comments and answer all your questions from the back end of the system. This search will run from this time until you move into your home. Any new properties to hit the market or any properties that fall into your parameters will be sent to you by email.

This is a great way for you to keep track of all the properties on the market, make notes on the ones you have seen, and eliminate ones you do not like once you have seen them. It is the best way to keep you and your realtor on the same track regarding the condos that might work for you.

I hope that gets you started and in the next part of the series I will discuss finally hitting the pavement with your realtor, negotiating the offer, inspection, attorney approval period and closing. In the final part of the series I will discuss the current state of the market, foreclosures, short-sales, and tax incentives to owning a home.