By Dana Fiori
Congratulations! You’re on the road to achieving the American dream of homeownership. Becoming a first-time homeowner involves many emotions and can be extremely overwhelming. It’s exciting, stressful, confusing, and perhaps one of the most adult things you could possibly do. When you’re ready to settle down and join millions in homeownership, here are the steps to take to make the most of your home buying experience.
Step 1 – Organize Your Finances
Organization is a crucial first step in the home buying process. Figuring out your expenses and knowing what you can afford should be a top priority when it comes to buying your first home. You also want to make sure your credit is in good standing before you take on a monthly mortgage payment. Extra tip: to raise your credit score, check out these hacks from Apartment Therapy. Once your credit is in the right place, it’s time to obtain pre-approval for a loan to help figure out your home price range. Be careful though, pre-approvals only last up to 90 days, so you will have to reapply if your home search is longer than that.
Step 2 – Find a Realtor®
You want to work with a Realtor®, especially as a first-time homebuyer. Realtors® will be able to guide you in the right direction, answer any questions you have, and lead you to the home of your dreams. Learn more about why it’s vital to use a Realtor® here.
Step 3 – Begin the Home Search Process
Here’s the fun part – the search! Think of what you (and your partner if you are shopping with one) are looking for in a home. It’s essential to keep your budget in mind and remember you may not be able to obtain everything on your wishlist for your first home. Your Realtor® will be able to layout exactly what you can afford and show you homes that best fit your needs.
Step 4 – Make an Offer
Did you find the home of your dreams? Perfect! Your Realtor® will use their skills and expertise to help you craft an offer that is competitive but fair. Many real estate professionals suggest submitting a personal letter to the seller to set you apart from other offers according to Apartment Therapy. If you choose to write a personal letter, you would also submit your pre-approval letter, earnest money, and a clean contract. After all the documents are submitted, it is time to wait and cross your fingers your approval was chosen by the seller. It’s perfectly acceptable to get excited but remember your offer could be denied, so it’s important to be ready for that outcome as well.
Step 5 – Time for Inspection
One of the most critical steps in the home buying process—the inspection. Home inspections are crucial mostly because it’s the time you will learn the most about the house. For a reliable inspector ask friends, family, and your Realtor® who they recommend.
Step 6 – Purchase and Sale Agreement
This agreement will specify the agreed-upon price as well as any contingencies. Be sure to ask any and all questions and have your Realtor® walk you through the process. If you are unsure of anything, they are there to assist. This is also the time to shop for Homeowners and Title Insurance. You won’t be able to get a loan without these insurances, so make sure you are set.
Step 7 – Closing
Grab some fresh pens and get ready for lots of signing. During the closing is when you will review your closing disclosure, do a final walkthrough of the home, and sign lots of paperwork. While you are signing all the essential papers, there will be multiple attendees such as your Realtor®, the seller, the seller’s Realtor®, title institution representative, lending institution representative, seller’s attorney, buyer’s attorney, and of course, you.
Step 8 – Move-In
You did it, you are officially a homeowner! Now is the time to unpack, unwind for a bit, and enjoy your new place.
Source: A Beginner’s Guide to Buying Your Forever Home – Apartment Therapy