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 buyer’s guide will help reduce the stress of buying a home and help you enjoy the journey as much as possible.
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, take note of asking and closing prices. This could give you valuable insight into housing trends in specific neighborhoods and will help you be more educated when the time comes to make an offer.
Your budget should not be determined by 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. This likely includes doing a full household budget and taking into consideration what changes other than a mortgage payment will occur once you move into your new home. If you’ve lived in an apartment or with roommates, be sure not to overlook new expenses like garbage, water, or hoa fees that could easily blow your budget.
Just because you think you can afford a certain payment every month doesn’t mean the mortgage company will agree. Just as they may approve you for too large of an amount, they may also approve you for a lesser amount or deny you a mortgage altogether. Lack of time at a job, insufficient credit, past bankruptcies, or other financial issues can cause major problems when trying to secure a mortgage. Before you get your heart set on a home, talk to a mortgage professional to find out what amount you can qualify for. This is important because you want to be sure that you are focusing your home search on homes that are in your budget and that you can afford. Also, since some sellers won’t entertain offers from those who aren’t already prequalified for a loan, a strong pre-qualification letter at the time of offer can be a big advantage over other buyers.
Can you shop for, look at, and ultimately make an offer on a home without a real estate agent? Technically yes, but working with a dedicated buyer’s agent costs nothing and takes much of the stress off of you. Not only will we help to identify properties you might be interested in, arrange showings, and ultimately handle the offer process. Finding the perfect home can be a daunting task, but working with an agent who has knowledge of the market and who understands your goals will make the experience enjoyable and successful.
This should be the most enjoyable step of the entire process (other than moving in!). We will tour homes you’re interested in that are within your price range. I will note attributes that you like and don’t like with the goal of helping you identify your priorities in a home. During our showings, I will help to educate you on the home buying process and home ownership so that when the right property comes along, you will be able to make a confident, informed decision.
Once you have selected the perfect home, we will work together to craft an offer. I will educate you on the various ways to structure your offer, your options for contingencies and provide you information on comparable homes on the market to aid in determining our offer price. Depending on what the home is listed at and whether the current environment is a buyer’s or seller’s market, your offer may be below, at, or even above the asking price. I will be able to help you negotiate any counteroffers. If we reach an agreement, both you and the seller will execute the purchase agreement and you will pay a deposit that will be placed into escrow until closing.
In most cases, your offer will be contingent on having the home inspected to ensure there is no major structural damage or large repairs needed. We can help you arrange this, and you can schedule it within days of making an offer. If there are no major issues, the process goes to step eight. If there is, you can renegotiate your offer based on what needs to be fixed, or you can withdraw it.
Now is the time to go back to the mortgage lender who pre-approved or pre-qualified you and choose your mortgage. You will be presented with various options based on your unique 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.
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.
I will assist in helping you meet all the contractual obligations/contingencies outlined in the purchase agreement as well as help you prepare for home ownership. This includes working directly with your chosen closing attorney and coordinating with the agent of the seller to keep everyone on track. On closing day, we will take one final walk-through of the property and then head off to the closing attorney’s office to officially sign the paperwork to purchase the home.
After signing the final paperwork to complete the purchase and once the seller has received payment from the mortgage company, you are now the owner of a new house and can move in.
I currently work for the Susie Hatch Team at William Raveis Real Estate as a real estate agent and have done so since 2014. I take pride in providing my customers with a high level of client service and local area expertise. My client base ranges from first-time home buyers and corporate re-locations to high-end buyers and downsizers.