Everything you need to know about buying a home

If you’re in the process of buying a home, then you’re probably thinking about where to start. Our guide on how to buy a home includes a checklist to help guide you every step of the way. Follow our tips and tools below and let us help you buy your first home.

Research 

When buying a home, start with conducting preliminary research that can help narrow down your selection to the houses that best suit you. Read websites, magazines, blogs and other resources that contain real estate listings. From there, mark down the homes that interest you most. Take special note of housing prices, location, and amenities.

Happy hunting! 

Affordability 

Once you’ve narrowed down your search, begin thinking about what you can and can’t afford when buying a home. Being realistic here can help the overall process move much quicker. Generally, it’s recommended that you look for a home 3-5 times higher than your annual income. To help gauge your expenses and provide the most accurate budget when buying a home, use an affordability calculator.

Get Qualified 

You’ve done the research and figured out your budget, what’s next? When it comes to buying a home, the most important step is to get prequalified and preapproved for a mortgage. In order to get prequalified, you will need to provide your mortgage banker with your financial background, including your income, savings, and investments. Upon reviewal, your lender will tell you how much they can lend you, which will better inform you of your budget.

The next step will include getting pre-approved for credit. Provide your W-2, prior paycheck stubs, bank account statements, etc so you can be verified for credit by a lender.

Real Estate Agent 

You’re ready to start shopping for homes, but who should you entrust with guiding you through the real estate market? Finding a reliable and trustworthy real estate agent is an important step to buying a home, especially if it’s your first. Real estate agents have access to information not available to the public and can help you make your home buying experience much easier. Additionally, real estate agents can help you find the best homes for your budget and help with the buying process and negotiations. And best of all, real estate agents don’t cost you money. Agents are compensated by the seller!

Shop 

Once you’ve chosen a reliable real estate agent, this is where the fun begins—you’re getting closer to buying a home. Your agent will begin drawing up a list of homes in your ideal location and price range. From there, you’ll begin touring each home. Take pictures of each home you tour and note all of the things you liked to help you narrow down your selection.

Take your time finding your ideal home or the home that speaks to you. Once you’ve decided, you and your real estate agent can begin the negotiation process, including putting a fair offer on the house.

Escrow 

You’ve put an offer in and after negotiating the price a little, your real estate agent announces that your offer has been accepted. Once you and the seller reach an agreement, your potential new home will go into escrow, which can last anywhere from 30 days to 90 days. It’s within this time period that the remaining steps of buying a home take place.

Home Inspection 

Before buying a home a few details need to be addressed first. Within the escrow period, a home is put under an inspection, which includes a thorough check of any structural issues or major issues that may need to be fixed. Once the inspection report is complete, you can decide if you want the seller to fix anything prior to purchasing the home. You can also back out completely if you decide there’s too much damage to make the purchase worth it.

Prior to closing the sale, you’ll get a chance to walk through the house yourself to make sure everything you’ve agreed upon has been completed.

Loans 

Once you’re ready to close, it’s time to select a loan with your mortgage banker. The loan you select will depend widely on how you want your monthly payments (mortgage) to look like. Some are interested in keeping their mortgage payments as low as possible, while others want to ensure that they’re on a fixed mortgage. Whichever your priority, make sure to discuss it with your mortgage banker before buying a home. 

Home Appraisal 

When buying a home, you’ll go through an appraisal. An appraisal will be placed by a lender to estimate how much the house is actually worth. The appraisal will be conducted by a third party that is completely independent of the seller, buyer, and lender. The appraisal will provide the most accurate estimate and will prove to all parties involved that the buyer is indeed paying what the house is worth.

Closing

You’ve come down to your final steps. Part of closing is paperwork…lots of paperwork. The paperwork will mainly be handled by your agent who will help provide, explain, and organize the necessary paperwork to complete the sale. Once you sign the paperwork, it will take a few days for your loan to be funded. You’ll be ready to move into your new home once the check has been delivered to the seller!

Buying a home may seem daunting, but it is one of the most rewarding experiences. You’ll be buying a home for your family and for your future, and that’s worth it in the end. What are you waiting for? Contact me to get started.