First-time Buyers Guide

 

 1) Figure out what you can afford

 

Before looking for your ideal home, you must do a personal financial audit to see how much of the mortgage payment you can afford. Also, you must be aware of the ongoing cost of owning a home. Some self-audit tips are listed below:

 

  • Credit is key!- Financial institutions require a good credit score for a home loan. 
  • Have 2-4 months of living expenses in your savings. The savings can help you pay for expenses such as down payment and unexpected costs arising from the buying process. 
  • Have a tight budget and track how much you are spending every month. Make sure to account for your expenses, including utilities, groceries, clothes, and student loan payments. 

 

2) Connect with a real estate agent

 

Real estate agents will represent you and look out for your best interests. They provide services such as:

 

  • Agents are familiar with the buying process and help you manage the critical paperwork to ensure you stay ahead of due dates.
  • Agents know the market and can identify trends, which can help you make the most informed decision when purchasing a home. 
  •  An agent can use their expertise to find the best price for the prospective property so we do not overpay when making an offer.
  • They can negotiate lower prices on your behalf.
  •  An agent is an expert on the local area factors and how those may influence property value. 
  • If needed, an agent can connect you with third parties, such as repairmen, lawyers, and electricians.
 

3) Get pre-approval for a Mortgage

 

Obtaining a pre-approval for a mortgage makes the buying process more manageable. The pre-approval is based on income, credit score, and other assets. The pre-approval letter will help your agent find an ideal home within your budget.

 

4)  View Homes with Your Real Estate Agent

 

The agent will find several properties that meet the requirements you want and are within your budget. You must be patient and view several options before finding a home that meets your criteria.

 

5) Make an Offer

After finding the property that meets your criteria, the real estate agent will search for comparable properties in the same neighborhood to find the fair market value of the subject property. Most of the time, there are several offers before closing a home. Sellers can accept or reject or counter your offer. 

 

6) Call a Home Inspection if needed

 

Your real estate agent can recommend a home inspector, and the home inspector can give a detailed report of the findings. If there are significant issues, you can reopen negotiations and ask the seller to repair the problems before closing the house. 

 

7) Closing

 

When the loan has been approved, your lawyer will investigate if the seller has the authority to sell the property. After the seller accepts your offer, the lender will ask for a third-party appraisal to finalize the mortgage and complete any additional paperwork. The appraisal protects you and the lender by ensuring a fair price for the home will be paid. You will pay the down payment and closing costs when the title search is completed. Finally, sign the mortgage documents and get your move-in date.