Home Buying Process
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 first time buyer’s guide created by your agent 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? If you want a condo, townhome, or single-family home? Which features do you like and dislike? What’s available on the market now? If you answered no to any of these questions, now is the time to start researching. In addition to looking for homes that interest you, also take note of any changes in asking prices.
Step 2 Decide on Your Budget
Notice we said to decide on your budget—not determine how much the mortgage company will give you. In many cases, a mortgage company will pre-approve you for more than you’re comfortable spending, which is why you need to determine the monthly payment you feel comfortable with before talking to a lender.
Step 3 Get Prequalified
Before you get your heart set on a home, talk to a mortgage professional to find out what amount you can qualify for. This will also be an advantage when you make an offer on a home, as some sellers won’t entertain offers from those who aren’t already prequalified for a loan.
Step 4 Choose an Agent
Not only will we help identify properties you might be interested in, arrange showings, and ultimately handle the offer process, but we also have knowledge of the market that you don’t possess. Let us show you around some homes that meet your dream home criteria.
Step 5 Find the Right Home
We will arrange showings of homes you’re interested in that are within your price range. Take notes about what you like and don’t like, and make sure to pay attention to details like traffic, parking, and proximity to grocery stores.
Step 6 Make an Offer
Once you have selected the perfect home, work with your agent to craft a fair offer based on the value of comparable homes on the market. We will be able to help you negotiate if you receive a counteroffer and reach an agreement. At this point, the house will go into escrow.
Step 7 Have the Home Inspected
Your offer will usually be contingent on a home inspection to ensure there is no major structural damage. If there are issues, you can renegotiate your offer based on what needs to be fixed, or you can withdraw it altogether. We help you arrange this process quickly.
Step 8 Select Your Loan
Now is the time to go back to your mortgage lender and choose your specific mortgage type. You will have various options based on your financial situation, including fixed-rate, 15-year, 30-year, or special programs like VA or FHA loans. Choose the option you feel most comfortable with.
Step 9 Get a Home Appraisal
Your lender will have your new home appraised to get an independent value. The appraisal ensures that all parties involved are paying a fair price for the house, protecting both you and the bank's investment.
Step 10 Finish Paperwork
Paperwork is a necessary part of the closing process. Fortunately, everything will be arranged by your lender and title company. When you’re finished signing, you’ll officially be the legal owner of your new home.
Your Journey Ends Here
Congratulations!
After signing the final paperwork, you are now the owner of a new house. It may take a few days for your loan to be funded, but once that check is delivered to the seller, you’ll be all set to move into the home of your dreams.
