Steps to Buy a House: A Guide for First-Time Home Buyers
The steps to buy a house might seem complicated at first. It's no wonder first time home buyers wondering how to purchase a home often feel overwhelmed. But if you dream of owning a home, it's essential you know what to do and who to turn to, right? Plus, the home buying process is not as scary as it might seem at first. Just check out these 10 straightforward steps to buy a home, and you're well on your way!
Steps to buy a house
Step 1. Are you ready to become a homeowner?
Whether you’re becoming a homeowner for the first time or you’re a repeat buyer, buying a house is a financial and emotional decision that requires the experience and support of a team of reliable professionals. These folks know how to purchase a home from beginning to end, so lean on them! That's what they're there to do.
Step 2. Get a Realtor®
In the maze of forms, financing, inspections, marketing, pricing, and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local Realtors who serve your area.
Therefore, even before you meet with a lender to apply for a loan you should reach out to a realtor. We know the lenders with the best rates,as well as service. Many lenders do not have the required track history to get your loan closed on time.
We know the insurance agents with the best service as well as rates. Like real estate agents, not all insurance agents are created equally!
First-Time Home Buyer's Guide
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Step 3. Get a mortgage pre-approval
Most first-time buyers need to finance their home purchase, and a consultation with a mortgage lender is a crucial step in the process. Find out how much you can afford before you begin your home search.
There are two primary reasons why you get pre-approved before you start looking at homes:
- you do not want to look at homes you cannot afford. This is the worst feeling in the world
- in our current market most homes are sold with multiple offers and a pre-approved buyer is viewed more favorably
Step 4. Look at homes
A quick search on our site will bring up thousands of homes for sale. Educating yourself on your local market and working with an experienced Realtor can help you narrow your priorities and make an informed decision about which home to choose.
Step 5. Choose a home
While no one can know for sure what will happen to housing values, if you choose to buy a home that meets your needs and priorities, you’ll be happy living in it for years to come.
Step 6. Get funding
The cost of financing your home purchase is usually greater than the price of the home itself (after interest, closing costs, and taxes are added). Get as much information as possible regarding your mortgage options and other costs.
Step 7. Make an offer
While much attention is paid to the asking price of a home, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value—or additional costs—for buyers.
Step 8. Get insurance
No sensible car owner would drive without insurance, so it figures that no homeowner should be without insurance, either. Real estate insurance protects owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.
Step 9. Closing
The closing process, which in different parts of the country is also known as “settlement” or “escrow,” is increasingly computerized and automated. In practice, closings bring together a variety of parties who are part of the real estate transaction.
Step 10. What’s next?
You’ve done it. You’ve looked at properties, made an offer, obtained financing, and gone to closing. The home is yours. Is there any more to the home-buying process? Whether you’re a first-time buyer or a repeat buyer, you’ll want to take several more steps.
As you can see, there are many steps to buying a home and it requires a lot of work, but once you get to the end, you've got a pretty sweet reward! A qualified realtor can help guide you through all of the necessary steps.
Contact us today to get you started on your home buying way!