San Jose Real Estate * REALTOR ® * Richard Gonzalez

First Time Home Buyers Quest

A first time home buyers quest

I met a nice lady at my little girl’s school who told me an interesting story about her brother and his wife; it was a story about their first time home buying challenges. What struck me during the story was the reference to the lack of communication and professionalism on behalf of the real estate agent they chose, it flashed me back to 2005. Back then clients had to chase down real estate licensees and once they found an agent, they then had to go another twelve rounds trying to find the right home.

Truthfully I can’t see how anyone can successfully run their business by making their clients chase them. That being said and with all the economic challenges our economy faces this is the best time to use the right guide in your quest to owning a home.

Getting back to the story, this nice couple is employed, they are school teachers, and have a good down payment. The frustration for this young couple was lack of communication with their guide and the need for a great referral to a true knowledgeable real estate professional.

Definition of a guide:

To assist (a person) to travel through, or reach a destination in, an unfamiliar area, as by accompanying or giving directions to the person.

Here are some basic steps to prepare you for your journey

1. Ask for a referral to a real estate professional who someone you know recently used for a loan or to negotiate a transaction. Make sure they are a REALTOR and or subscribe to some organization with a code of ethics.

2. The rule of two: Gather your last two years tax returns, most recent two months bank statements, two most recent pay-stubs.

2.1 Gather any retirement, savings, 401k, 403b and anything else that shows you have access to money.

2.3 Many cities in the Silicon Valley have money to loan, most can be used without having to pay back the loan until you sell or refinance your home.

3. Have your mortgage professional pull your credit and give yourself a month or two to fix and/or repair your credit. This is huge because lenders will make a decision based on first impression; you want to give them what we refer to in this business as the “warm fuzzes”.

4. Have a laser like focus on the area where you want to live. The worst thing you can do is go out window shopping in this market.

5. Understand you’re “why”. Do you know “why” you want to buy, where you want to buy, what your motivations are, and the time line you have chosen? You will find that during your home buying process you will need to know you’re “why” otherwise you will find yourself second guessing every decision you make.

Following these simple steps will prepare you for your journey.

Don’t get sidetracked, stay with your guide

I find that buyers sometimes blame home buying frustrations on the real estate professional. Some times changing your guide is warranted,  before making a change ask yourself why you are willing to change your guide and understand how that change can have a positive or negative affect to your home buying experience. Are you doing this for financial incentives or for lack of professionalism? Choosing the first may cost you in the long run. Value is in a knowledgeable professional, not a licensee who is willing to give you a kickback, that takes no skill whatsoever. Who would you rather have as your guide? Crocodile Dundee or an inexperienced guide?

A true real estate professional can guide you through this process by showing your the overall real estate landscape and help you plot your path to home ownership before you begin your quest. The current market environment is full of wonderful home buying opportunities and treasurers but it is not for the faint at heart. Navigating through the pitfalls should be done with the assistance of your trusted professional advisor(your guide). You wouldn’t trek into the jungles of Africa without a guide, would you?