How do you eat an elephant? One bite at a time – the same can be said for first-time home buyers when trying to take on the task of buying a new home. If you break out the process into smaller steps, the entire home buying process won’t be so intimidating. With that said, below are some steps to taking when buying a new home for the first time.
Budget / Pre-Qualification: You need to know how much home you can afford. Buying a home is an investment, and being a homeowner offers you many benefits. With that said, you don’t want to overstretch your finances and take on more debt than you can afford. You should first consult a mortgage company and talk through your options, which include how much your down payment should be, your income and credit information, and how much monthly loan payments you can afford. Based on this information, a lender can give you a rough estimate of what you can afford to pay each month and then go through the process of getting you pre-qualified for the loan. Once you have this information, you will be well-prepared to start looking for houses because you will be solidly set on your price range.
Features / Neighborhoods / Areas: Consider what you have to have in the home you are considering buying. Do you need a specific number of bedrooms and bathrooms? Do you need a certain-sized home? Are there
special features that you have always wanted? Once you have your list of features and amenities, you can research the neighborhoods or areas in which you want to live. This is important for safety, schools, and proximity to your work and activities.
Home Search: Whether you use a real estate agent or not, you should be very actively involved in your home search. By staying aware of what is available and what becomes available on the market, you will have more options on homes to buy. Attend open houses to get an idea of what is in the market – this will also give you a better sense of the neighborhoods.
Offers / Inspections / Closings: Once you have made an offer on the home, a real estate agent could come in handy when negotiating prices, closing dates, and any potential repairs that will need to be done or paid for during the inspection process. It is strongly recommended that you get a home inspection in order to rule out any catastrophic or unseen problems in the homes. After the offer is accepted, you will want to stay actively involved with your lender and title company, so that there are not surprises or delays with your closing.
Real estate professionals work full-time in their field and can advise you along the way with any questions or concerns that you have with the “unknown,” while you are going through the home buying process. Buying a home for the first time can be exciting and a fulfilling process. By following the tips above, you will hopefully have a smooth and successful home buying experience.
