You've no doubt heard this before, and it's true: Buying a home is probably the biggest investment you'll make in your life. All the more reason for moving through the process with care, and help from someone with expertise - a licensed Realtor®. And that means you take things one step at a time.
Deciding to buy
For most people it's the desire to have something of their own, bricks and mortar, equity.
If you are paying rent, those same dollars can go for a mortgage. But you must be sure that, financially, you are comfortable with a down payment, the monthly payments, and have the ability to hold a home for the long run.
Hiring an agent
With many professionals involved in the process – appraisers, bankers, title researchers, etc. – it's important for you to find a licensed realtor who can coordinate the efforts of those participants and be your advocate throughout the process. A buyer's agent knows the market, knows your wants and needs, chooses homes fitting your criteria, negotiates on your behalf, double checks paperwork and deadlines, and solves problems which may arise.
As important: you have to feel comfortable with your Realtor – professionally and personally – and that person should have your trust.
Securing financing
Being a first-time homebuyer can be an overwhelming experience. Below you'll find an easy-to-understand 6-step process for securing the financing of your first home:
Finding a Home /Making an offer
Driving around and looking for homes can be fun for awhile, but it can get pretty stale when time goes by and you haven't found your dream house. That's why looking for a home begins by assessing your needs – location, neighborhood stability, space, established house or new construction, etc. – both for the short and long term. Your Realtor can help.
You've been pre-approved. You are searching for the perfect home and believe you have found it. So it's time to make an offer. But, you must temper your dreams with reality. And that means, with the guidance of your Realtor, the price you offer has to fairly reflect the true market value of the home you want to buy. Any written contract should contain a schedule of events before closing, items that stay with the house when sellers leave, real estate agent commissions for both the buyer and seller, closing costs (usually paid by the buyer), a warranty covering repair or replacement of appliances and major systems (seller may pay for this), and some "earnest money" to show how serious your offer is.
Performing due diligence
In simple terms, making sure a licensed inspector checks for structural damage and determines that the home is in safe working order, from plumbing to electric and more. If there's a big problem you might want to walk away from the purchase.
And then home owners insurance, to protect yourself against property loss or damage, and for liability coverage should someone be injured on your property.
Going to closing
As you near the day you and the seller sign on the bottom line your lender will have conducted a survey of the property, an appraisal to confirm the home's value, a title search to make sure the property is free and clear of liens, and a final check of your credit and finances.
You have to stay in touch with your agent, confirming a few days before closing that all paperwork is in order. The lender has to provide certified funds for closing. And you have to do a final walk-through of the home and property.
On closing day, across the table, your mortgage will be finalized. The seller and closing costs, including agents' commissions, will be paid. The title will be transferred from the seller to you and the transaction will be legally recorded as a public record.
Congratulations and good luck! But remember, through this entire process you will have a licensed, trained professional real estate agent at your side. It's my hope that agent's name will be: Paula Coburn of Brock Realty.
Contact Paula
All information provided is deemed reliable but is not guaranteed and should be independently verified.
Deciding to buy
For most people it's the desire to have something of their own, bricks and mortar, equity.
If you are paying rent, those same dollars can go for a mortgage. But you must be sure that, financially, you are comfortable with a down payment, the monthly payments, and have the ability to hold a home for the long run.
Hiring an agent
With many professionals involved in the process – appraisers, bankers, title researchers, etc. – it's important for you to find a licensed realtor who can coordinate the efforts of those participants and be your advocate throughout the process. A buyer's agent knows the market, knows your wants and needs, chooses homes fitting your criteria, negotiates on your behalf, double checks paperwork and deadlines, and solves problems which may arise.
As important: you have to feel comfortable with your Realtor – professionally and personally – and that person should have your trust.
Securing financing
Being a first-time homebuyer can be an overwhelming experience. Below you'll find an easy-to-understand 6-step process for securing the financing of your first home:
- Choose a bank, credit union or other financial institution, then sit down and speak with their loan officer.
- Make a loan application and get pre-approved.
- Decide how much you want to pay and select a loan option.
- Once the home has been chosen, give the lender an accepted purchase offer contract.
- Get an appraisal, an inspection and a title commitment.
- Obtain funding at closing.
Finding a Home /Making an offer
Driving around and looking for homes can be fun for awhile, but it can get pretty stale when time goes by and you haven't found your dream house. That's why looking for a home begins by assessing your needs – location, neighborhood stability, space, established house or new construction, etc. – both for the short and long term. Your Realtor can help.
You've been pre-approved. You are searching for the perfect home and believe you have found it. So it's time to make an offer. But, you must temper your dreams with reality. And that means, with the guidance of your Realtor, the price you offer has to fairly reflect the true market value of the home you want to buy. Any written contract should contain a schedule of events before closing, items that stay with the house when sellers leave, real estate agent commissions for both the buyer and seller, closing costs (usually paid by the buyer), a warranty covering repair or replacement of appliances and major systems (seller may pay for this), and some "earnest money" to show how serious your offer is.
Performing due diligence
In simple terms, making sure a licensed inspector checks for structural damage and determines that the home is in safe working order, from plumbing to electric and more. If there's a big problem you might want to walk away from the purchase.
And then home owners insurance, to protect yourself against property loss or damage, and for liability coverage should someone be injured on your property.
Going to closing
As you near the day you and the seller sign on the bottom line your lender will have conducted a survey of the property, an appraisal to confirm the home's value, a title search to make sure the property is free and clear of liens, and a final check of your credit and finances.
You have to stay in touch with your agent, confirming a few days before closing that all paperwork is in order. The lender has to provide certified funds for closing. And you have to do a final walk-through of the home and property.
On closing day, across the table, your mortgage will be finalized. The seller and closing costs, including agents' commissions, will be paid. The title will be transferred from the seller to you and the transaction will be legally recorded as a public record.
Congratulations and good luck! But remember, through this entire process you will have a licensed, trained professional real estate agent at your side. It's my hope that agent's name will be: Paula Coburn of Brock Realty.
Contact Paula
All information provided is deemed reliable but is not guaranteed and should be independently verified.