Buyer's Guide
A Step-by-Step First Time Buyer's Guide
Buying a home is one of the most exciting milestones of your life. To prepare yourself for this moment, you need to know what to expect during the process. This step-by-step guide will help reduce the stress of buying a home and help you enjoy the journey as much as possible.
Step 1: Research
Do you already know where you want to buy? Whether you want a condo, townhome, or single-family home? Which features matter most to you? Start by exploring what is available on the market right now. Take note of asking prices and how they shift over time. This gives you valuable insight into housing trends in specific neighborhoods and helps you make a stronger offer when the time comes.
Step 2: Decide on Your Budget
Notice I said decide on your budget, not determine how much the mortgage company will give you. In many cases, a lender will pre-approve you for more than you are comfortable spending. That is why you need to determine the monthly payment you feel good about before talking to a lender. Do a full household budget and consider new expenses that come with owning a home, like garbage, water, or HOA fees that could easily blow your budget if overlooked.
Step 3: Get Prequalified
Just because you think you can afford a certain payment every month does not mean the mortgage company will agree. They may approve you for a lesser amount or deny you altogether. Lack of time at a job, insufficient credit, past bankruptcies, or other financial issues can cause problems when trying to secure a mortgage. Before you get your heart set on a home, talk to a mortgage professional. Being prequalified also strengthens your offer when you find the right home.
Step 4: Choose a Real Estate Agent
Can you shop for and ultimately make an offer on a home without an agent? Technically yes, but why would you when it costs you nothing for someone like me to take much of the stress off your shoulders? I will help identify properties you might be interested in, arrange showings, and handle the offer process. I also bring market knowledge you may not have. Let me show you homes that meet your criteria so you can find the one that fits.
Step 5: Find the Right Home
This should be the most enjoyable step of the entire process. I will arrange showings of homes you are interested in that fall within your price range. Take notes about what you like and what you do not. Pay attention to the details: turn light switches on and off, open and close doors, run faucets. Do not limit your inspection to the home itself. Explore the neighborhood, watch traffic patterns, check the parking situation, and see how close it is to schools and grocery stores.
“My goal is to provide you with the most personalized service that is designed to help you buy your dream home”
Step 6: Make an Offer
Once you have selected the right home, we will work together to craft a fair offer based on comparable homes on the market. Depending on the listing price and whether we are in a buyer's or seller's market, your offer may be below, at, or even above asking price. I will help you negotiate if you receive a counteroffer and work toward an agreement. At that point, the house goes into escrow.
Step 7: Have the Home Inspected
In most cases, your offer will be contingent on having the home inspected to ensure there is no major structural damage or costly repairs needed. I can help you arrange this within days of making an offer. If there are no major issues, we move forward. If something comes up, you can renegotiate your offer based on what needs to be fixed, or you can withdraw it entirely.
Step 8: Select Your Loan
Now is the time to go back to the lender who pre-approved or pre-qualified you and choose your mortgage. You will be presented with various options based on your financial situation, including fixed-rate, variable-rate, 15-year, 30-year, or special programs such as VA loans or FHA loans. Work with your mortgage lender to select the option you feel the most comfortable with.
Step 9: Get a Home Appraisal
Your lender will have the home appraised so they have an independent assessment of its value. The appraisal ensures that all parties involved are paying a fair price for the property. This is a standard part of the process and protects both you and the lender.
Step 10: Finish Paperwork
No one looks forward to the paperwork involved in buying a home, but it is a necessary part of the process. Everything will be arranged by your lender and title company. When you are finished, you will know you are the legal owner of your new home.
Congratulations!
After signing the final paperwork to complete the purchase, you are now the owner of a new house. It may take a few days for your loan to be funded once the paperwork has been returned to the lender, but once that check is delivered to the seller, you will be all set to move into the home of your dreams.
