First Time Home Buying Tips: Advice from the Partners at Rêve | Realtors

How to Navigate First-Time Home Buying with Confidence

The partners and agents at Rêve | Realtors are some of the most knowledgeable and experienced real estate agents in the greater New Orleans area. And having worked with so many buyers over the years, they have great advice for how to navigate the first time home buying process with confidence. From getting pre-approved for a mortgage and knowing a neighborhood to bidding strategies and the power of the personal touch, their advice, and the expertise of our professional Rêve agents, will help you take control of the path to home ownership.

Pre-Approval is Key

As a first time homebuyer, you may have heard about the importance of getting pre-qualified or pre-approved for a home loan. But there’s a big difference between the two. Being pre-qualified is just the first step of the process. It simply means that you’ve submitted an overall financial picture to your lender, and they’ve given you a ballpark figure of how much you can expect to borrow. This can be done quickly online, and there’s usually no cost involved.

On the other hand, pre-approval means that you’ve completed an official mortgage application and supplied all the information your lender needs to take a closer look at your financial situation and history. Most of this can be done online as well, but the process takes a bit longer. Once you’re pre-approved though, you’ll have a conditional commitment in writing for a specific loan amount. “Being pre-approved is much more beneficial when it comes to house-hunting and your ability to quickly make an offer. It also gives you an advantage with a seller, since they know your offer is serious, and you’re close to getting a mortgage,” notes Rêve partner, Clint LaCour. To get help figuring out how much home you can afford and how to find the right lender, rely on your Rêve agent to walk you through the process.

Know the Neighborhood

The New Orleans real estate market sometimes marches to the beat of its own drummer, seeing growth and change at times when other markets aren’t. On top of that, every neighborhood has its own advantages, disadvantages, and eccentricities to consider. A Rêve agent will know them all – and help you decipher the areas and properties that will offer you the lifestyle you’re looking for as well as the best investment for your money. “It’s important to get to know a neighborhood before you buy into it. Check it out during the day, and see what’s happening at night. Look to see if homes are being renovated in the area and which amenities are close by. Knock on potential neighbors’ doors to say hello and ask for feedback. You simply can’t get too much information about a neighborhood,” stresses Ryan Wentworth, Rêve partner.

Bid Smart

Bidding on a home can be a tricky process. Some houses are overpriced, and some are priced to sell — so be sure to rely on the expertise of your Rêve agent to determine a successful bidding strategy. For example, “If you’re competing against other bidders, you might go the route of increasing your down payment,” says Joey Walker, Rêve partner. “A higher down payment means you’ll need to borrow less from the bank, which is helpful if a bidding war pushes the price above what the house might appraise for. On the other hand, if a house has been on the market for a while, offering less than asking price is smart – but how much less depends on data gathered from the neighborhood and how motivated the seller is.” Consult with a Rêve agent to figure out the smartest way to bid.

The Power of a Personal Appeal

Money talks, but you might be surprised by the power of a personal appeal. If you fall in love with a property, write a personal letter to the seller, openly and honestly letting them know your situation, why you love the house, and why you think you’re the right buyer. “I’ve seen this work well with succession properties, where a property has been owned by one family for many years. In this case, there can be a lot of emotional investment on the part of the seller, and the human touch of a personal appeal can sometimes put your offer over the top,” explains Tracey Moore, Rêve partner. Read the story of one seller who inherited her childhood home, and how a video created by a young family persuaded her that they were the right buyers.

When you’re ready to buy, get the best advice you can from a professional Rêve agent. Contact us anytime!