Buying a home is a significant milestone in many people’s lives. It’s a journey that involves careful planning, research, and a touch of emotion. Whether you’re a first-time homebuyer or experienced in the real estate market, this guide will walk you through the entire process, from setting your goals to closing the deal.
Understanding your Motives
Prior to starting the Homebuying process, it is important to understand why you want to buy a home. Understanding your motivation will help you determine what kind of home you need and its location. Important questions to consider include am I downsizing, upsizing because of family, or am I moving because of a change in job? All of these questions will play a role in what home you buy.
Preparing your Finances
Secondly, considering your finances is essential when purchasing a home. You must save for a downpayment (which we’ll cover in another article), as well as allocate funds for closing costs, inspections, appraisals, earnest money, and more. Once you have accumulated sufficient funds, it’s necessary to seek pre-approval for a mortgage. I strongly advise reaching out to a local lender or credit union to determine your eligibility. Obtaining pre-qualification is a critical step before initiating the home search because, without it, you won’t have a clear budget in mind. Additionally, lacking a pre-approval letter to bolster your offer can put you at a disadvantage in case you discover a home you’re interested in.
Finding an Agent
During your pre-approval or once you are approved it’s time to find a real estate agent to help you with the buying process. Here are some key things to look for in an agent. Communication, a good agent will consistently communicate with you and keep you updated on different phases of the transaction. Secondly, market expertise you want an agent who is an expert in your market and actively helps you find the best deal. Lastly, availability (Mentally and Physically), you want an agent who is available for you and your needs and is willing to listen to what you want. Once you meet with your agent they will go over your needs and set you on a search based on your budget and housing needs.
Home search and submitting an Offer
Once you have found your agent you will start searching for your home. The home search process can be lengthy and time-consuming especially if you are in a hot market. The key to success in finding your home is to know exactly what you want and your budget. Knowing what you want will eliminate the analysis paralysis portion. When you have found the home you want it is time to submit an offer. Price and terms is important so ask your agent for advice on what the best terms and conditions are to make your offer as attractive as possible.
Offer Acceptance
Once you have an accepted offer there will be a list of things that will need to be done prior to closing. These include clearance to close on your home, inspections, appraisals, earnest money, etc.
AVOID MAKING THESE MISTAKES
At any point during the home-buying process avoid making any huge financial moves, this includes buying a car, changing jobs, taking out large lines of credit, using credit cards, and avoiding delinquent bills. Making anyone one of these mistakes puts you at risk of losing the opportunity for you to miss out on your home buying opportunity. However, if you need to make a large purchase for whatever reason talk to your lender about it first to see your best approach. They will be more than happy to help if you are honest and up front with them.