Are you a first-time home buyer? Does the home buying process freak you out a little? It can be extremely overwhelming even if you have bought a home before! I am going to walk you through step-by-step on how to purchase your first home. This is one of the most important purchases you will make in your life so why not have all the information right up front!
So you have reached out about buying your first home. Now what? Well let’s go through it!
Step One: Finances
I think starting out here is most important. We are able to establish how much you can afford so we are not looking at homes that are going to be out of your price range. I am going to ask you about your current finances and if you have talked with a lender or need some guidance on who to talk with. Once we have a clear idea of what your price point is, how much you are going to put down, and the interest rate we will move on to step two.
Step Two: Your Dream Home
Now that we have a price point we can talk about what you are looking for in your dream home. How many bedrooms, bathrooms, square footage, location, etc. We will look at the current listings on the market and decide if you think any of these are what you’re interested in. I will get you set up on a MLS search that will email you daily of the new homes in your criteria that are listed. Once you see something you’re interested in taking a look at I will schedule that showing right away.
Step Three: Making an Offer
After looking at homes you have come across one you want to put a offer on. This is where things get exciting. We will go over the terms of what we think is best to offer, I will write up the offer, send over for signatures and send it into the agent.
Step Four: Offer Accepted
Our offer has been accepted!! What a relief. Once we hear our offer has been accepted we will move on to scheduling inspections and turning in the earnest money.
Step Five: Inspections
We are in the inspection period. If you don’t have anyone in mind for inspections (don’t worry, a lot of people don’t) I will send over some recommendations. Once you have decided on who you would like I will schedule the inspection. I always recommend having the whole home inspected, radon, termite and sewer. The whole inspection usually takes around 2 hours, and for first-time home buyers I recommend they come to the inspection to understand how it all works and to receive the information directly from the inspector.
Step Six: Negotiation Period
Once the inspections are complete we will go over the report and decide how we would like to proceed. We will make our list of repairs and send over to the listing agent. If they are accepted we will move forward, if not we will discuss how we would like to come to an agreement.
Step seven: Appraisal
The lender will send an appraiser out to the house. Once the appraiser determines the value of the home, the underwriting step begins. This usually takes a few days. If the value is lower than the agreed upon price we will have to come to an agreement with the sellers.
Step Eight: Underwriting
Once we have come to an agreement on the sales price we will hear back from the lender that the loan has been approved and we are cleared to close.
Step Nine: Final Walkthrough
We have made it to the final walkthrough. This usually will happen the day before closing. We will walk through the house and make sure everything is left how we saw it last. We will also make sure that any and all repairs were made. If they have we are cleared to move to closing.
Step Ten: Closing Day
Closing day!! We will have a time scheduled with the title company to come in and sign all the paperwork. You will need to bring your check, ID and a hand ready to sign a good amount of paperwork. Once this is complete, you will receive the keys to your new home. Congratulations, you made it!!