Expert Tips for First-Time Homebuyers: Insights from Dave Carrabino

Homebuying is a process, and for first-time homebuyers, it may seem like a daunting one. But with a Community Bank Mortgage Loan Consultant by your side, the process can be much easier to navigate. 

We sat down with David Carrabino, Mortgage Loan Consultant (MLC) at Community Bank, to chat about his 25 years of experience helping first-time homebuyers buy the right home for them. 

Q: Tell us about your role at Community Bank. What do you do as a Mortgage Loan Consultant? 
A: The main thing I do is make sure potential homebuyers are well-informed about our flexible loan options and how we can build them around their situation. Are they looking for a cost-savings approach? Do they have extra money for a down payment? A lot of factors play into the process and I make sure they understand the terms and know all their options. 

But I’m not just behind a desk all day. I make a point to be out and involved with my community. Knowing how homebuying works is one thing, but being active in the community is just as important. 

Q: In your experience, what do most first-time homebuyers not understand about the process? 
A: A lot of it comes down to not understanding the cost implications. Most people know about closing costs, but there’s a lot that goes into it. Some of it is even out of my control, like attorney fees and title reports. That’s why it’s so important to have your application all buttoned up. 

Even a simple oversight with your income can trip you up . Some people think they will qualify for a certain amount, but we’ll review their documents and discover it’s actually a different price point. A lot of factors can impact the amount they qualify for, like a deferred student loan or a car payment. But as an MLC, it’s my responsibility to make sure everything is accounted for: assets, forms of previous employment, you name it. That’s why you should always meet with an MLC first. They’ll work with you to make sure everything is in order and you get an accurate prequalification amount. 

Q: What advice would you give a first-time homebuyer when determining their budget? 
A: Buying a new home can often be such a challenging process that some homebuyers don’t really consider what comes after. There’s going to be a lot of outside expenses like utilities, gas, food, cost-of-living items—and that’s not even including when something breaks in the house. It all adds up, so my advice would be to not overextend yourself by purchasing a home that’s too expensive. It’s my responsibility to help you avoid that, but it ultimately comes down to you. 

Another piece of advice would be to keep your credit healthy. That means making payments on time, even if it’s the minimum amount, and not ignoring past collections. Those never go away and can seriously impact your credit score. Also, avoid purchasing big-ticket items when you’re looking for a home. Buying a car or maxing out your credit card will directly impact the loan you receive. 

Q: Are cash offers still winning out when buying a home? 
A: For a number of years, cash offers were pushing first-time homebuyers out of the market. Even with programs designed specifically for first-timers, sellers seemed to gravitate toward people with larger down payments or cash deals. That said, I’ve been hearing from Realtors that 100% cash offers aren’t nearly as frequent as they used to be. A lot more lending is going on, which is leveling the playing field. 

Would I recommend making a cash offer? That’s a nuanced question and situation-dependent. But in my role as an MLC, it’s my responsibility to let buyers know how much home they can afford. Like I said, I don’t want to put people in a position where they overextend themselves right out of the gate. This isn’t a quick transaction; this is a long-term investment—and I’m in it all the way. 

Q: Some people are waiving inspections to ensure their offer is accepted. What advice would you give buyers who find themselves in this position? 
A: The older the house, the more important it is to have an inspection. Ultimately, it’s up to the buyer, but when you’re looking at a house that’s 40, 50, 60+ years old, you’ll want to make sure there are no surprises. But if it’s a newer home, an appraiser will still check for safety issues. This is required by the bank and can’t be waived, so you’re still getting a layer of protection. 

My advice in any situation is to take a close look at the house yourself. It may look gorgeous in an online listing but could be much smaller than expected. I know a lot of people who were ready to make an offer but then wound up seeing the place in person and decided against it. So do yourself a favor and see as many houses as you can and take a close look at things like the foundation, roof, the general structure. From there, you can decide if an inspection of the house you’re interested in is right for you. 

Q: What watchouts do you have for inexperienced homebuyers? 
A: For starters, I’d say to watch out for lenders who don’t have a presence in your area. Not being part of your community is a big red flag. I’d also say be wary of interest rates that are much lower than what you’re seeing from local lenders. Chances are, they come with a lot of extra costs and fees that sneak up on you throughout the process, so be careful and know what you’re getting into. 

Q: What makes Community Bank different from other lenders? 
A: I’ve been in the mortgage world for 25 years and I can say I’ve never had so much support in my life. Our products, like our no closing cost mortgages, are phenomenal and can save people a lot of money, especially since we keep the mortgages. I’ve seen other lenders sell off their mortgages along with servicing rates, but that’s not what we do. 

More importantly, we do a lot of good in the community. A few weeks ago, I was able to coordinate a community soccer match and was encouraged to do so by my colleagues. We had a terrific turnout, had a lot of fun, and strengthened our ties with the community. I want to be active and involved with my neighbors, and Community Bank supports that. This is a perfect fit for me and I’m glad to be here. 

Ready to start your homebuying journey? Take the first step today.