I'm Ready to Buy a Home: What's Next?
Buying a home is a big step in everyone’s life because of the significant financial decision behind it. Luckily, you’re ready to take that step! Now that you are prepared to buy your first home make sure you have already determined your budget, checked your credit score, and saved for the down payment and closing costs. Below we will be discussing the next steps you must take to purchase your first house.
Step 1: Get Preapproved for a Mortgage
Getting a pre-approval letter is an essential step of the process. A pre-approval letter signifies that you will likely be approved for a mortgage. The pre-approval letter will state how much you are approved for based on your income, credit, and assets. This will make you much more attractive to potential sellers.
To get pre-approved, you must apply with a lender. When applying with a lender, make sure they offer the type of loan you want. Here are 4 options of loans you could get approved for:
Step 2: Find the Right Real Estate Agent
Next, you want to find your ideal real estate agent. A good realtor knows the market, can negotiate, is reliable, and will help you every step of the way. A real estate agent will clarify any questions you may have, show you properties, assist you in negotiations, and write an offer letter for you. Buying a home without a realtor is not recommended because buying your first home can be a very complicated process. Agents make a considerable impact on their client’s buying journey, as 75% of buyers would use their agent again or recommend their agent to others.
I am a 5-star real estate agent, and I am very passionate about helping others find their forever home. Consider working with me to help alleviate your stress during the home-buying process.
Step 3: Go House Shopping
After finding the right real estate agent, it is time to go shopping! Your realtor will make sure to show you listings that you like. Most of the time, you and your agent will discuss what factors are important to you so that they can bring you the home of your dreams. Consider these factors when looking for your first home:
Price
Square Footage
Number of Bedrooms
Property Value Trends
Backyard/Swimming Pool
Attached Garage
Step 4: Make an Offer on the Home
After you find the home you want, it will be time to make an offer. Your realtor will help assist you in writing an offer. Additionally, this is where your real estate agent’s negotiation skills will come in handy, as you want to get the best value for your money. There are three ways the seller can respond to your offer:
Accepts the offer - you can then move forward to the next step.
Counters the offer - you can either decline, accept, or counter their counter offer.
Declines the offer - you can either try making a new offer or moving on to another home.
Step 5: Get a Mortgage
Now that you know the property's price you want to buy, you will choose a lender to get a mortgage. You will either want to refer back to the lender who pre-approved you, or you can look for a different lender. Then, you will submit a mortgage application, and the lender will decide whether to give you the loan. This step will require many financial documents and other necessary proof of identification details such as recent bank statements, federal income tax returns, details on long-term debts (car and student loans), and your social security number.
Step 6: Close on Your New Home
This is the most exciting part of the process, as you have now closed on your first home. After what feels like so much paperwork is finished, you will go through a final walkthrough of the house with your realtor to ensure everything agreed upon is there.
It is no secret that an excellent real estate agent can help make this journey less stressful. Contact me today if you’re looking for a real estate agent who will help guide you through this complex process of buying a home. I have years of experience and knowledge of the market. Additionally, I am a Master Certified Negotiating Expert, and I am always happy to help new home buyers find their dream home.