Buyer Story: The Long Road To Your First Home!

I wanted to share with you a recent buyer that I have helped buy their first home and how it can encourage you.

I first met “William” (not his real name) three years ago.  He was referred to me by a past client that I helped over 12 years ago!  Anyway, “William” called me to let me know that he wanted to buy his first home in south Jersey.  He moved here from another state and really liked the area.  He also found a really good job, so he decided he wanted to settle down with his family.

When “William” first contacted me, this was during the Covid era.  The real estate market was crazy!  Homes were flying off the market as soon as they came up for sale.  Interest rates were way down.   It was very competitive time for all buyers – but especially for first-time home buyers.  I let “William” know all this so he can be a well-prepared and educated buyer on the current market at that time.

The first step I did after I spoke with “William” after learning his needs and wants, was to match him with one of my preferred lenders.  He quickly connected with the lender, submitted the documentation requested, his credit was good, and he was able to get a mortgage preapproval letter.  He was motivated!    The preapproval was generated.  “William” was approved at the lower price range for entry level homes.  

So, we then started looking for homes in his specific, selected areas in his price range.  Because of the market at that time, the homes we saw did not meet many of his needs and wants.    Those needs included at least 3 decent sized bedrooms, a dining room so his family can have Sunday dinners – this was very important to him – a kitchen layout that met his needs as a former restaurant cook, a basement, and a driveway. 

So, after a couple of months looking at a few houses, he realized that the type of home that fit his must-have needs were in a higher price range.   After much reflection and introspection, he decided for himself that at that it wasn’t the right time to buy a home that met his needs at his desired location.   Therefore, he decided to step back.   “William” was that currently renting and had an arrangement that he could move out anytime with at least two months’ notice. 

During this time, I kept in touch “William” sending him my weekly buyer e-newsletter “Homebuyer Bits” educating him on the homebuying process and the state of the current market.   Occasionally I would send him a text or give him a quick call.   Even though many months would pass, and I didn’t hear from him, he knew that I was always there and available for him anytime he had a question about homebuying.

Fast forward almost three years, and lo and behold – I got an enthusiastic call from “William”!  He was excited because things were going well with his job – he got a promotion and a raise.   He had saved some money, and his credit was even better than before.  So, he was able afford a home at a higher price range, thus giving him more options. 

The reason he called me at this time was because while he was at his bank where he had his accounts, one of the representatives mentioned to him that the bank had a special first-time homebuyer program exclusively for their current clients.   The program had stricter guidelines than a traditional mortgage – it the home had to be bought within specific counties and had to be in decent condition.   But he qualified for a lower interest rate and a grant of $7,000 towards downpayment and closing costs based on his qualifications.  Once he learned about this program, he called me right away to restart the process. 

We then met up and I sat down with him to go over the whole process but mostly to find out exactly what his current needs were and how they have changed from before so I can better help him find his home.  “William” decided to get an updated preapproval from my preferred lender, as a backup.  He liked what they had to offer, and it is good to get a backup preapproval in case things don’t work out with your first choice. 

So, we restarted the home search with more knowledge, information and enthusiasm!  The market was not as crazy as three years ago, but it was still a seller’s market.  A seller’s market means that there are more buyers looking for homes than homes for sale and this increases prices!  This did not deter “William” because his desire to buy his first home was greater than what was going on in the market. 

This time, there were more homes on the market that he was able to qualify for, but still a lot of other buyers to compete with.   He learned that as we were looking for homes, if he liked it, he had to make a quick decision and make an offer right away.  This comes from experience the more times you go out there and look at homes in that type of market. 

He submitted an offer on a home that an offer got accepted, but during the inspection, he decided not to buy the home because of severe termite damage in the basement.   He did not want to deal with that and did not want to renegotiate the price and decided to cancel the contract and get his deposit back.  That’s why I always let all my first time buyers know that always, always get a home inspection.  It will give you more options to have the seller make the repairs, or you can ask for some money back to make the repairs yourself or just cancel the contract so you can get your initial deposit back. 

The search continued – more homes, more offers.  Then he made an offer on a home at his ideal location, with his dining room, his kitchen layout, a basement and a driveway!!  We submitted an offer – there were other offers submitted but I counseled him what price to offer, negotiated with the seller on the closing date and also having the buyer obtain the township Certificate of Occupancy (CO) inspection (which I helped him with).  His offer was accepted!! 

We continued with the transaction – completed the inspections and the mortgage process.  He decided to choose the mortgage provided by his bank, so he got his grant, slightly lower interest rate and most of his closing costs paid – even in this crazy market! 

He closed on his home.  He was so happy on closing day as he was signing all the documents.  He had even saved up enough money to make some updates on his house before he moved in with his family.  He truly made his house a home!!  He was so thankful with his experience that he referred me to other family members!  Yey! 

It just goes to show that if you have a strong desire to buy your first home, it can be done!  It may take a lot longer, you may need to work on your income, your credit, lower your debt, but it can be done.  And I’ve seen time and time again, buyers end up with the home they were meant to have at the right time! 

If you want to find out more about buying your first home and having your own first time homebuying adventure and want to get started , Click Here.   Let’s explore this option and see if it is right for you!  😉