Home Buyer’s Guide
Your Step By Step Guide To Buying A Home
Buying a home is one of life's most amazing accomplishments. Being well prepared is an important step and it’s critical that you know exactly what to expect during the process. Whether you’re a first time home buyer or just need a refresher, the guide below was created with you in mind and will help provide clarity and ensure you trust the process of purchasing your new home.
Step 1 - Decide To Buy
Building wealth is one of the most significant reasons you should consider buying a home. Becoming a homeowner is one of the best investments people make in securing their future.
It provides a foundation for financial security and personal freedom. The financial benefits of buying a home are substantial, including equity buildup, property value appreciation, and tax advantages.
Step 2 - Do Research
Knowing where you want to buy, the type of property you want (condo, townhome, or single-family home), must-have vs nice-to-have features, and what’s currently on the market are all critical pieces of information you’ll need prior to starting your search.
As you search for homes that interest you the most, you and your REALTOR will need to monitor changes in asking prices, days on market, and other trends that may offer valuable insight when the time comes to make an offer!
Step 3 - Get Pre-Qualified & Decide On Your Budget
Getting pre-qualified (pre-approved for a loan) is another important step you must take prior to starting your home search. Applying for a home loan with a mortgage lender will set the tone for your home search by providing the guardrails on your budget.
They will review your identification, employment history, income, credit and rental history, or history as a homeowner with your existing lendor. Spotty job history, credit challenges, bankruptcies, or other financial issues can cause major problems when trying to secure a mortgage.
Talking with a mortgage professional is sure to provide clarity on your purchase options as well as understand of what your payment will look like. Review more info on Buyer Pre-Qualification 101
Note: Home sellers likely won’t accept offers without pre-qualification or proof of funds (cash offers only).
Step 4 - Choose Your Real Estate Agent
While anyone can shop for, view, and make an offer on a home without a real estate agent, this is not ideal and offers no real benefit to you as a buyer. The typical real estate transaction involves multiple industry professionals and third-parties - mortgage brokers and underwriters, inspectors, appraisers, surveyors, escrow officers, buyer’s agents, seller’s agents, bankers, title researchers, lawyers, and a number of other individuals whose actions and decisions have to be carefully coordinated in order to get a home sale closed.
Why would you purchase a home alone when you can hire an agent like me to take the majority of the stress off you while also protecting you during this complex process? It is the responsibility of your real estate agent to expertly oversee and coordinate all the professionals involved in your home purchase and to act as the advocate for you and your interests throughout.
MY GOAL IS TO SUPPORT YOU IN THE PROCESS OF PREPARATION & GUIDE YOU THROUGH EVERY STEP OF THE TRANSACTION
With me by your side, you can expect personalized attention, expert advice, and a steadfast commitment to your success.
Step 5 - Find Your Home
House hunting is perhaps the best part the process; the only thing better is moving in to your new home! My role is to arrange showings for homes you love within your price range. You will think about what you like and don’t like, and pay close attention to the details that matter most to you.
I encourage you to walk a home as if it’s already yours, turn light switches on and off, open and close doors, and run the faucets in various rooms and note whether or not it feels right for you. Often times buyers forget to explore the local neighborhood, consider traffic patterns and commute times, and explore proximity to necessities like schools, grocery stores, and shopping.
Step 6 - Make An Offer & Have The Home Inspected
When you’ve found the home you love, we’ll work together to make a fair and reasonable offer on the home based on the value of comparable homes on the market. The list price of the home and the current status of the market (buyer’s or seller’s market) will determine the strategy we use when making an offer.
Depending on the unique circumstances, you may opt (or it may be best) to offer below, at, or even above the asking price. My role is to help write and negotiate your offer to reach an acceptance. When the offer is accepted, the house will go into escrow.
In the majority of cases, your offer will be contingent on having the home inspected to ensure there is no major safety issues, structural damage, or significant repairs needed; this is called the Due Diligence period. My role is to help arrange this for you within days of making an offer. If there are no major issues, we can move to the next step. However, if there is, we can work to renegotiate your offer based on what needs to be fixed, or you can opt to withdraw your offer.
Step 7 - Select You Loan Product & Have Your Home Appraised
After completing the Due Diligence (inspection) period, you now must have the mortgage lender who pre-qualified you and choose your loan product (type of mortgage). This is an important stage as the lender will provide you with options based on your unique financial situation (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. Additional your lender will have your new home appraised so they have their independent value of it. The appraisal is to ensure that all parties involved are paying a fair price for the house.
Step 8 - Close On Your New Home
This is the finish line! But first, there’s paperwork that must be completed as a critical step in the process. Everything is typically arranged by your lender and the title company.
After signing the final paperwork to complete the purchase, you are now the owner of a new house. It generally takes a few business days for your loan to be processed by your lender, however, once the seller received their check, you’ll be all set to move into the home you’ve always dreamed of!
CONGRATULATIONS
What a special moment this is, you are now the legal owner of your new home! And, You finally have a set of key’s that belong to you!
