Buyer Tips -

First Time Buyers

As you decide to purchase your first home, you should review these important tips so that you can be better prepared for the home purchase process.

Set Your Expectations
  • Set the correct expectations – Take out a blank piece of paper and write out your wish list.
  • There is no such thing as the perfect home – but there is a home that is perfect for you.
  • Make sure you know what you want before starting the buying process.
  • Be prepared! Prepare a “wants and needs” list
  • Gather all your financial documents to provide to the lender so they can pre-qualify you and let you know what loan amount you can qualify for.
  • Be patient and realistic when looking for your first home.
  • It’s important to find a home within your financial position at the time of purchase – Remember, your first home most likely won’t be your last.
How Much Can You Afford?
  • Have a budget. It may seem like a no-brainer, but you’d be surprised how many first-time home buyers don’t know how much money they have to spend on their new house.
  • Figure out your personal budget to determine how much you can truly afford, then get pre-qualified and compare the amounts. Use the lowest of the two.
  • Purchase a home that you can afford.
  • Keep your mortgage within your budget and find a neighborhood that has amenities that will fit your needs.
  • Protect yourself: Get pre-qualified for a mortgage so you don’t spend more than you can afford for a home.
Consider if it’s Better to Rent or Own
  • Don’t forget that rent is a variable – it will likely be much higher five years from now.
  • The real estate market has made it less expensive to own a home rather than to rent one.
  • Know the trade-offs of renting verses owning.
  • When considering your price point, start with the amount of rent you are paying now, not necessarily what the bank/mortgage company says they will loan you.

First Time Buyers

  • Educate Yourself on Local Market Conditions

    Educate Yourself on Local Market Conditions


    Buyers must be aware of market conditions.

    You will probably move in the next seven years, so make sure to think about future resale value. Although the real estate market goes through its up-and-down cycles, over the long term, property values will continue to increase.


    When the market shifts to a “seller’s” market – you have to be aggressive with your home search because properties will be selling quicker and with multiple offers.

  • Learn about the Buying Process

    Learn about the Buying Process


    • Do not get too emotional about the house until escrow is closed – Things can go wrong during the time your offer is submitted and accepted through close of escrow.
    • Do your homework!
    • Don’t get stuck on price! The question should be – Does this purchase improve my living?

  • How to Choose the Right Home

    How to Choose the Right Home


    • Choose the property according to your needs.
    • The most important thing when buying a home is location, location, location!
    • Love what you buy.
    • When you feel the feeling of finding your dream, act quickly.
    • Take the time to search for a home that suits you and meets your personal and financial needs.
    • Buy the “most house” that you can comfortably buy, and, even perhaps, push yourself to the limit of your pre-approved amount. This way, you will be satisfied with your purchase for the long-term.

  • Find Out How Much Financing You’re Eligible For

    Find Out How Much Financing You’re Eligible For


    • It’s essential to get pre-approved for a loan before you begin your home search.
    • Know your finances.
    • Speak to a mortgage broker or (Aiello & Associates) to discuss your loan options and to find out the maximum home purchase price you can qualify for based on the mortgage amount you are comfortable paying every month.
    • There are various loan options – some of which are tailored towards buyers with less-than good credit.

  • Why You Should Get Pre-Qualified or Pre-Approved

    Why You Should Get Pre-Qualified or Pre-Approved


    • It’s very disappointing to see a home you cannot afford and waste time, energy, and emotions.
    • You will be so disappointed if you fall in love with a home outside of your price range.
    • Getting pre-qualified or pre-approved will let you know your buying power and limitations.
    • It’s necessary to submit a pre-approval letter along with your purchase offer. Without it, you can possibly lose out on a home.
    • Having an approval in hand gets a buyer to the front of the line in making an offer.

  • Make Sure You Know about all the Expenses of Owning

    Make Sure You Know about all the Expenses of Owning


    • Understand the down payment amount requirement, closing cost, and what your new total housing payment will be.
    • Remember – Besides your mortgage payment you will also pay for your home insurance, property taxes, mortgage insurance (if applicable) and Homeowner Association Fees (if applicable).
    • Create a list of pros and cons associated with home ownership. Pros will include income tax deductions, building equity, sense of stability, etc. The cons include fears and disadvantages of home ownership, which will most likely include ongoing maintenance responsibilities, repairs, etc. These lists will help you reaffirm your decisions and will help put your fears into perspective.

Note the following regarding mortgage insurance:

  • For Conventional loans – mortgage insurance is required if the down payment is less than 20%.
  • For FHA loans – mortgage insurance is required regardless of the down payment amount
Working with a Real Estate Agent (Realtor)
  • A Realtor can help you navigate the process while providing you expert guidance and advice.
  • Markets vary from one another and a Realtor can provide you with local information about the property.
  • A Realtor understands property values and can assist you in establishing your offer price.
  • Get a Realtor that explains the process and walks you through every facet of the buying process. This is critical to avoid costly mistakes.
  • Make sure you like your Realtor and mortgage broker.  
  • Make sure your Realtor educates you thoroughly about the buying process and the market, and that they then empower you to make educated decisions.
  • Hire a Realtor who understands your concerns and educates you. Ask the agent questions throughout the process so that you better understand the entire home purchase process.
  • Work with a Realtor who will represent your best interests.
  • Make sure that the Realtor you work with is someone you can trust and that will put your interests ahead of their own. If they care enough – they will ask you lots of questions!
  • Be absolutely certain that you align with the right Realtor and Mortgage Broker. A great real estate team will help a buyer purchase a home that fits well and within their budget.
  • All Realtors are not created equally – so be sure you work with a professional, competent and knowledgeable Realtor that will be there for you every step of the way.
  • Set a face-to-face meeting with your Realtor to discuss the home buying process.
At Aiello & Associates, we are dedicated and here to assist you in understanding the home buying process, working together on a plan that will move you towards your goal of becoming a home owner, help you find what you are looking for and hold your hand throughout the entire process from start to finish!