Steps to Buying a Home for First Time

Steps to Buying a Home

To Buy or Not to Buy Purchasing a home is a great investment and can be a path to long-term wealth, provided you are in the financial position to become a homeowner.

Homeownership provides a variety of financial advantages including equity buildup, value appreciation and tax benefits. Deciding to purchase a home is one of the largest and most important purchases you will ever make.

Essentially it can be a forced savings account, unlike paying rent – which builds someone else’s equity and wealth.

Select a Real Estate Professional  Update you on current home market conditions  Analyze your wants and needs in buying a home  Show you homes that fit your search criteria and price range  Assist in preparing offers  Work with your lender, home inspector and other needed professionals throughout the process  Negotiate to your best advantage while protecting your interests  Manage any issues that may occur along the way  Ensure the terms, conditions, and deadlines of the contract are met before closing

Get Pre-Approved Along with choosing a Real Estate Contractor, getting pre-approved for a mortgage is another important step in the home purchase process. Before you begin searching for a home, you will want to know the amount of financing for which you qualify so you search in the right price range. You may not want to borrow the full amount for which you are pre-approved.

Find the Right Home Once you are pre-approved, it is time to start your home search. Your real estate agent can help you identify your home search criteria and guide you through the home search process. What city or neighborhood do you want to live in? How many beds and bathrooms do you want in your new home? Do you want a move-in ready home or a fixer-upper? How many garage stalls do you need? Do you want a fenced in yard or a large backyard? What other features are “must haves� for you?

Make an Offer Once you’ve found the right home, it’s time to make an offer. This is exciting, but it Typically an offer includes but is not limited to:  Price  Earnest Money  Financing  Terms & Conditions  Date of Possession  Contingencies (Contingencies specify any event that will need to take place in order for you to fulfill the contract, i.e. inspections to be completed on the home, an existing home to sell prior to closing on a new home, etc.)

Conduct Inspections Once the terms of your home purchase are agreed upon, you will want to have a home inspection completed by a professional. This will expose any hidden issues, i.e. condition of shingles, the foundation, the furnace and the like.

Closing After the inspection process is complete, and you are ready to move forward, there are a few pre-closing responsibilities that you will need to keep in mind:  Stay in control of your credit and finances – Don’t make any large purchases prior to closing.  Stay in communication with your real estate agent and lender. Be sure to complete and turn in all required documentation as requested and in a timely manner.  Do a final walk-through inspection of the property with your Real Estate Professional.  Confirm you have received a copy of the closing statement prior to closing.  Bring a cashier’s check for all the closing costs and the balance of the down payment to the closing.

Home Buyers