Buying a house is no small feat, especially if you’re a first-timer. You must handle the process well so that you don’t make any mistakes.
Here are six steps to follow:
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Step 1: Define What You Want
Start by creating a list of your wants in your new home, along with the reasons why. Use it as your search guide, but you need to remember that you may need to reconsider a few items on that list based on your financial health.
While it’s good to retain a certain amount of flexibility in this list, you’re making one of the most significant purchases of your life. You need to focus on having that purchase balance both your needs and wants as closely as possible.
Additionally, talking to a local real estate agent will help you make intelligent choices. The agents are well versed with their markets and will help you make a realistic list.
Step 2: Get the A-Team
The home buying process has multiple steps involving multiple entities and challenges. Having a team to support you helps you navigate through the process right team on your side. Your home inspector, real estate agent, and appraiser will play an important role here. Buying a new home is often compared to a team sport since there are so many individual tasks, timelines, responsibilities, and documents requiring careful attention.
Among other things, your real estate agent will be a great help with the entire process. They help narrow down the best properties that meet your budget and requirements, along with negotiating the price and terms of the offer while assisting you through closing.
Besides having a professional team that you can trust, it’s also important that the individual players effectively communicate and act on essential decisions collectively.
Step 3: Figure Out What’s Affordable
Now that you’ve identified what you want, it’s time to find out what you can afford. Once you have a fair idea of your financial condition, your next step would be getting pre-approved for a mortgage. This process can often be performed quickly and accomplishes two important objectives.
- First, it tells you how much house you can afford and what your payments would be.
- Second, it tells the seller that you have the means to buy their home.
A pre-approved buyer has an approved loan subject to an appraisal of the property. You can use this pre-approved status as leverage during the negotiation process with the seller. It’s important to know how much home you can afford, how much down payment to budget for, monthly payments, as well as what type of loan you’ll use to buy the property.
A consultation with a trusted mortgage professional should address all your questions and help overcome any potential challenges that can complicate the entire process. Sometimes, loans have certain restrictions about insurance, HOA, residence type, or appraisal. Your agent needs to be aware of this before showing you listings.
Step 4: Shop for Homes
Once you have decided on a locality, it’s time to start checking out houses for sale.
You may even find some sellers offering virtual tours of their properties, as well as virtual home planners to help you imagine what the house could become with you as the owner.
Next, begin visiting homes in person. Reach out to your local real estate agent to arrange visits and attend open houses that are in your target locality as well as your price range. When comparing the homes you tour, make sure to look at all facets of the property.
- Is the property tax approximately the same?
- Do any of the houses have any constraints or restrictions, and do they have equal bathrooms and rooms?
- Are the houses renovated?
- Are the houses located on similar streets?
Step 5: Make an Offer
Once you have found the home you want, you need to offer the seller. A real estate agent will help you understand the situation and then negotiate the offer; this helps you ensure that you’re buying the right property at the right price and time.
Once you have made your offer, the seller usually has 24 to 48 hours to consider your offer or make a counteroffer. A counteroffer means that they want to sell you their house, but they are looking to change to the offer’s original terms.
It might be a good time to consider purchasing a home protection plan. These insurance policies can be purchased either by you or the seller and help protect against unforeseen costs or home repairs during the listing period or in the initial years after the purchase.
Offers are subject to change based on a home inspection of the property to check for signs of damage or things that may need fixing. Your real estate agent will help arrange this inspection conducted within a few days of your offer being accepted by the seller. An inspection will reveal problems such as a leaky roof, gas leakage, pests, a foundation problem, things that you might have missed during your visits. It protects you by giving you a chance to revisit your initial offer or withdraw it if the inspection reveals significant damage.
Step 6: The Final Closing
Once your mortgage has been approved, and at least three business days before you close, you will receive a closing disclosure, which lists the fees you must pay, which typically cost two to five percent of the home price. Review this closely with your agent, and do not hesitate to reach out to the lender for clarifications.
Before you arrive at the closing table, ensure that all of the necessary documentation and transactions have been completed. Know what to bring to the closing table, such as your ID and any payments that may be due. Most of the time is taken up carefully reading and then signing forms. Once the loan closes, the funds go to the seller, and you get handed the keys to your home.
Have Questions? Ask The Grant Homes Group & Coast2Coast Realty!
The Grant Homes Group & Coast2Coast Realty is the best source of information about the local community and real estate topics. Give us a call today at (888) FLA-GULF (888-352-4853) to learn more about local areas, discuss selling a house, or tour available homes for sale.
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