Buying a house 101
First time home buyer? Keep reading to know what to expect, and how you can be prepared for an enjoyable home buying experience!
First things first…. congratulations on taking the steps to become a homeowner! There is great pride and joy that comes with home ownership. Let’s take a look at the steps you can expect to follow along the path to your first home.
Connect with Professionals
Even if your timeline to purchase is long, connect with a trusted Realtor who can answer your questions along the way and support you in reaching your goal. Your Realtor knows the market you’ll be searching in, they will help you get to know the city & help you customize your search. It is their job to support you and advocate for you, making the process straightforward for you.
Your Realtor can also connect you with a trusted mortgage specialist. Many first time home buyers are curious about financing, downpayment, monthly cost and understanding what you can afford. It’s never too soon to consult with a trusted mortgage broker, ask them questions and let them explain the process for you. They can advise you on what would be required for you to be approved for a loan.
Pre Qualification
Ready to present your finances and start looking for homes? The next step is to ask your mortgage broker for a pre approval letter. This will be shared along with your Realtor who will search for homes that fit your budget and desires. Your mortgage broker will ask you questions about your assets, income, debt and credit score to give an idea of what you will qualify for. Here is a tip! If you’re thinking of buying a home and a car, hold off purchasing the car until your mortgage is set in place, as the debt of a new car would count against what may be lended for the house.
Showings!
This is the fun part! You have the option to sign a purchase contact with your Realtor and see homes in person, get a feel for the layout, location, finish and vibe. A purchase contract is a document that agrees you’re choosing to work with one agent in the purchase of your home. Then when you’d like to see a house, you contract your Realtor each time. During a showing you can also take a look for finish and upgrades to the home. There is no set number of homes you may view before finding '“the one”, some people buy the first home they see, and others take their time viewing a dozen or more. Here is a tip when you’re in the home viewing stage; take notes on your impression of each house before you leave so you don’t forget after seeing multiple houses.
Making an Offer
When you find “the one”, its time to discuss and offer with your Realtor. They will put the offer together on your behalf, working with your mortgage agent to present and advocate for you in the bid. It is common for homes to have multiple offers, but only one will be accepted. Your agent will stay in close contact with you as they negotiate your offer and keep you informed of acceptance, counter offer or denial. It is good advice to keep looking at homes within your search until your offer is accepted.
Escrow
Once your offer is accepted, you then have a binding contract with the seller, and you move into escrow. There is much due diligence needed through the escrow time to ensure a successful closing. The first time sensitive actions after an offer is accepted is providing the earnest money, ordering an inspection and appraisal.
Also during this time, your mortgage broker will be in contact with you, asking for many documents to ensure they are able to process your financing in preparation for closing. Before closing, you will also be required to provide the down payment. Fun fact, your first regular mortgage payment is held off till the following month when you buy a new house.
Closing
You may picture a closing table with the buyer and seller sitting together signing documents, but it’s not like that these days. Expect to arrive at the closing office on time with the identification documents requested, your Realtor will be there by your side as well. The escrow attorneys will go through the documents you will be signing. Give some time for this process. Tip; many people find it more enjoyable to move in on another day after closing. You may choose to do a deep clean, renovations or paining before moving your belongings in.
Stay in Touch
Over the coming months and years, if you have questions about your mortgage, your agent will be there to assist you. If you choose to sell down the road, your Realtor will be at your service to guide you though the home selling process. It also means a lot to your team of professionals when you leave a review and recommend others to use them in their home purchases and sales. It is truly appreciated.