STEPS IN THE HOMEBUYING PROCESS

Buying a home can be a complex process, especially for first-time buyers. It involves several steps that must be taken in the right order to ensure a smooth transaction. Below we walk you through the home buying process:

Step 1: Determine Your Budget
Before you start house hunting, you need to determine how much you can afford to spend. This will help narrow down your search and avoid wasting time looking at homes that are out of your price range. Consult with a mortgage broker or lender to determine your budget. The best way to prepare is to take a class and get educated about the process.  The more you know the better you are to make an informed decision.  We go over this more in classes.  Here is a loan checklist of items to get ready for your loan officer.

Step 2: Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage is a crucial step in the homebuying process. It shows sellers that you are serious about buying a home and that you have the financial means to do so. A pre-approval involves a lender evaluating your credit scores, income, and debt-to-income ratio to determine how much you can borrow. Once you are pre-approved, you will have a better idea of how much you can borrow and what your monthly mortgage payment will be. The type of financing is important to your realtor too as they need to disclose to the seller your financing type be it FHA (Federal Housing Administration), VA (Veterans Affairs), USDA (US Dept of Agriculture) or Conventional (FannieMae or Freddie Mac).

Step 3: Start House Hunting
Once you have determined your budget and been pre-approved for a mortgage, you can start looking at homes. This can be done through online listings, real estate agents, or by attending open houses. When viewing homes, it is important to keep your budget in mind and to consider factors such as location, size and condition. Knowing how much you can afford to spend on a house helps you realistically evaluate your wants.  Other than affordability, you should consider the type of home and features you want , the size of your family, your lifestyle and special circumstances. If you are viewing a home during the weekday - try going back in the evening or weekends to see how the neighborhood is during peak hours of everyone being home and engaging with each other.

Step 4: Make an Offer
When you have found a home that you want to buy, you will need to make an offer. Remember this is a binding legal contract so make sure your agent goes over the contract in detail with you and answers all of your questions so you feel confident in signing the offer to the seller. This offer involves submitting a written offer to the seller, outlining the terms of your offer, such as purchase price, closing date, financing type and any contingencies (like if you have to sell your current home to buy this home). The seller can either accept your offer, reject it, or counteroffer. Negotiations may continue until both parties agree on the terms.

Step 5: Hire a Home Inspector
Before closing on a home, it is important to have it inspected by a professional home inspector. This will help identify any potential issues with the home, such as structural problems or issues with the plumbing or electrical systems. If any issues are found, you may be able to negotiate with the seller to have them repaired before closing. Remember if it’s not in writing it doesn’t exist. Get everything in writing.

Step 6: Close on the Home
The final step in the home buying process is to close on the home. This involves signing all the necessary paperwork and paying closing costs. Closing costs typically include fees for the loan origination, title search, and other related expenses. Your loan officer should go over all of these before hand so that there are no surprises as closing. Once all the paperwork is signed, the funds are transferred and the county transfers the name from the seller to you, then you will receive the keys to your new home!!!

Buying a home can be a complex process, but with the help of an experience loan officer, real estate agent and a little knowledge, you can navigate the process with confidence. Good Luck your your homebuying journey!!!