Buyer’s Guide
Step 1: Research
Have you identified the location where you’d like to buy, or the type of property that suits you best, such as a condo, townhome, or single-family home? Do you have a list of must-have and avoidable features? Are you up-to-date with what’s currently available? If you’re uncertain about any of these, it’s a good idea to start researching now. Look for homes that capture your interest and track any shifts in their asking prices. This can offer useful insight into trends in different neighborhoods, giving you an advantage when it’s time to make an offer
Step 2: Decide On Your Budget
The goal here is to define your budget, not to simply rely on the maximum amount a lender is willing to loan you. Often, lenders may pre-approve you for an amount that exceeds what you’re comfortable spending. To stay within your ideal range, consider a monthly payment that works for you before consulting a lender. This might involve creating a detailed household budget and factoring in any new expenses that come with homeownership, such as water, garbage collection, or homeowners association (HOA) fees, which can quickly impact your budget.
Step 3: Get Prequalified
Even if you know what you can reasonably afford monthly, a lender may approve you for a different amount or potentially decline your application. Job stability, credit history, past financial issues, or a recent bankruptcy can impact approval. Before falling in love with a home, consult with a mortgage professional to learn how much financing you qualify for. Being prequalified can also make your offer more attractive to sellers, as many prefer offers from buyers with prequalification in hand.
Step 4: Choose a Real Estate Agent
Yes, it’s technically possible to search for, view, and make an offer on a home without a real estate agent. But why go solo when an agent can handle much of the legwork at no cost to you? As your agent, I can help pinpoint potential homes, arrange showings, and guide you through the offer process. My knowledge of the local market may also reveal homes or areas you hadn’t considered and help you avoid potential pitfalls while ensuring you get the best possible price.
Step 5: Find The Right Home
This should be one of the most enjoyable steps (second only to moving in!). I’ll organize showings of homes within your budget that meet your criteria. Take notes on what appeals to you and what doesn’t, and observe the home carefully. Test the lights, open and close doors, and try the faucets in different rooms. Also, look beyond the home itself—take time to explore the neighborhood, monitor traffic at various times, check out the parking, and note how close it is to essential places like schools and grocery stores.
Step 6: Make An Offer
Once you find the right home, collaborate with your agent to draft a fair offer that reflects the current market and similar properties nearby. Your offer might be higher, lower, or equal to the asking price, depending on the market conditions. I’ll guide you in handling any counteroffers and reaching a satisfactory agreement. At this stage, the home will enter escrow.
Step 7: Have the Home Inspected
In most cases, your offer will hinge on a home inspection to identify any significant structural damage or required repairs. I can assist in arranging the inspection, which typically happens within days of the offer being made. If no serious issues are found, you’ll proceed to the next step. However, if problems arise, you may either renegotiate your offer based on needed repairs or withdraw it.
Step 8: Select Your Loan
Now it’s time to revisit your mortgage lender and select the loan that best fits your financial circumstances. Based on your situation, you’ll be presented with multiple loan options. Work closely with your lender to select the loan that you feel is the most manageable.
Step 9: Get a Home Appraisal
Though few people enjoy the paperwork involved in buying a home, it’s an essential part of the process. Thankfully, your lender and title company will manage the documents, ensuring that, once signed, you’ll be the official owner of your new home.
Step 10: Finish Paperwork
No one looks forward to all the paperwork involved in buying a home, but it’s a necessary part of the process. Fortunately, everything will be arranged by your lender and title company and, when you’re finished, you’ll know you are the legal owner of your new home.