Tips for First-time Newport Beach Home Buyers

Newport Beach real estate is a market like any other—there’s good and bad stuff, and what you get for your money is proportional to the amount of effort you put into it. If you’re a first-time buyer, it’s easy to get swept away by the glitz and glamour of the luxury market, but it’s important to look deeper and know what you’re buying. You’re spending a good part of your earnings on it, after all. Take these first steps to get a better understanding of Newport Beach homes and make sure you’re making the right choice.

Read Up

Home sellers don’t come knocking at your door with a key to the perfect home and a contract for the perfect mortgage. It’s your job to look at what’s available, weigh your options, and find the right fit. Read up on the real estate market, look at mortgage rates and requirements, and check out the types of property Newport Beach has on offer. Don’t hesitate to ask your agent questions—they deal with first-time buyers all the time and there’s no such thing as a silly question. The more you know, the smarter your decisions will be.

Get A Pre-Approval

Work out a budget and get a pre-approval from your bank before looking at Newport Beach homes. Your pre-approval letter will tell you what kind of home you can afford, which will help you narrow your options. This will also boost your chances of closing a deal, as sellers are more willing to work with pre-approved buyers.

Newport Beach lenders normally use the 28% rule: your mortgage payments must be 28% or less of your monthly income. Combined with other debts, the ratio must be at most 31%, the level at which a borrower is believed to comfortably afford a home. A lender can still approve you if you don’t make the cut, but the risks become exponentially higher.

Think Resale

The recent real estate crash has taught us that even Newport Beach real estate, among the most valuable in the country, can be vulnerable to economic slumps. You don’t want to end up selling short just because you bought the wrong home ten years ago. Always think about the possibility of selling your home, even if you have no plans of leaving. Look out for details that can add value in difficult times, such as a good location or an architectural feature that’s not present in other Newport Beach homes.

Protect Yourself

Make sure your purchase offer doesn’t leave you vulnerable. At the very least, you should have a financing contingency and an inspection contingency. Most property Newport Beach sales require these two. The first is a statement that you can walk away from the deal if the home appraises for less than your offer price, and the other requires a professional inspection and allows you to negotiate if any problems turn up. Work with Newport Beach real estate professionals who are familiar with local codes and quality controls. Both contingents protect you from less-than-ideal contracts you would otherwise be stuck with for years.