Buyer’s Guide
The steps you need to know about getting pre-qualified, putting together your search, offer, and closing on your home.
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. Following the steps will help you prepare so you can get organized, reduce the stress of buying a home and help you enjoy the journey as much as possible.
Step 1: You’ve Decided to Purchase a Home
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? The style of the home? The size, layout, yard, and if you need a garage? These are all important factors to consider.
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. 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, 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 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 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 a Real Estate Agent
What are your wants, needs, and desires in a home? We work together to understand and fulfill your wishes. Not only will we help identify properties you might be interested in, arrange showings, and handle the offer process, but we 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 us show you around homes that meet your dream home criteria so you can find the one that’s right for you.
Step 5: Find the Right Home
This should be the most enjoyable step of the entire process (other than moving in!). We will be with you every step of the way as we tour homes together until you find the perfect one for you. Make sure to take time to explore the neighborhood and keep an eye on traffic at certain times of the day, the parking situation, and how close it is to necessities like schools and grocery stores.
Step 6: The Offer Process
Once you have selected the perfect home, you and your agent will craft a fair offer based on the value of comparable homes on the market. 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. 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: Select Your Loan
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.
Step 8: Get a Home Appraisal
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 9: 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.
