BUYER’S GUIDE
A STEP-BY-STEP FIRST-TIME BUYERS GUIDE
Buying a home is one of the most exciting milestones of your life. To prepare for this moment, you must 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? 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, note any changes in asking prices. This could give you valuable insight into housing trends in specific neighborhoods and help you when the time comes to make an offer.
STEP 2: DECIDE ON YOUR BUDGET
Notice I 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, so 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 considering 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, you may overlook new expenses like garbage, water, or HOA fees that could easily blow your budget.
STEP 3: GET PREQUALIFIED
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 securing a mortgage. Before you set your heart on a home, talk to a mortgage professional to determine what amount you 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 not already prequalified for a loan.
STEP 4: CHOOSE A REAL ESTATE AGENT
Can you shop for, look at, and ultimately make an offer on a home without a real estate agent? Technically yes, but why would you when it costs you nothing for an agent like me to take much of the stress off your shoulders? Not only will I help identify properties you might be interested in, arrange showings, and ultimately handle the offer process, but I also have a knowledge of the market that you don’t possess. Finding the perfect home can be a daunting task. This is where my expertise and wealth of knowledge come into play. Let me show you some homes that meet your dream home criteria so you can find the one that’s right for you.
FIND YOUR DREAM HOME
STEP 5: FIND THE RIGHT HOME
This should be the most enjoyable step of the entire process (other than moving in!). I 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 pay attention to details. Turn light switches on and off, open and close doors, and run the faucets in various rooms. Don’t limit your inspection to the home itself. Explore the neighborhood and monitor traffic at certain times of the day, the parking situation, and how close it is to necessities like schools and grocery stores.
STEP 6: MAKE AND OFFER
Once you’ve selected the perfect home, work with your agent to craft a fair offer based on the value of comparable homes. Depending on the house’s listing price 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. If you receive a counteroffer, I can help you negotiate and reach an agreement. At this point, the house will go 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 large repairs needed. I 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 withdraw it.
STEP 8: SELECT YOUR LOAN
Now is the time to return to the mortgage lender who pre-approved or pre-qualified you and choose your mortgage. Based on your unique financial situation, you will be presented with various options, 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 your new home appraised so they have their independent value of it. The appraisal ensures that all parties involved pay a fair price for the house.
STEP 10: FINISH PAPERWORK
No one looks forward to all the paperwork involved in buying a home, but it’s a necessary part of the process. Fortunately, everything will be arranged by your lender and title company, and when you’re finished, you’ll 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’ll be all set to move into the home of your dreams.
WORK WITH GRAVES GROUP
Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more.
Contact me today.