Lets discuss today the steps you will need to take when buying a home. These are the basics that you will NEED to do prior buying a home and while under contract.
Home buying, real estate tips, buying process, and how to prepare to buy a home are the topics I will talk about with you here and in other articles.
Lets be honest. Sometimes it is stressful and scary to think about buying a home. It can also be very exciting. I have been there and understand the ups and downs. Before I was a Realtor we were ready to buy our first home. I knew nothing about the home buying process. Literally nothing except we had to get a loan and make monthly payments. I didn't know where to start, what we could afford, and all of the things that go along with buying a home. We didn't even know what type of home we wanted. Yeah we were not prepared at all except for having the goal of getting into a home.
This being said, I want to share some of the basics you will need to know when you buy a home. Regardless if it is your first or fourth home. Keep reading for more!
Tip #1 Hire a Realtor!
Yes I know this is like a duh or really do I have to hire one? Are they really needed?
Honestly yes we are needed. What we can bring to the table to help buyers and even sellers is something that is very hard to achieve alone. The data we have access to is unlimited. We know of all of the new listings, we even hear about homes and properties that haven't hit the market yet. We have details about the listings most do not see on the websites you have access to. As a realtor our goal is to be your advocate. We are here for YOU. Without you there is no us. We will do everything we can to get you into a home. We know how to negotiate and get the best outcome for our clients. There are also things we may see that a client may not during a walk through and will bring it to the clients attention. We have our connections with other professionals to help make sure everything goes smoothly.
Tip #2 - Get pre-approved
Why is it so important to get pre-approved and not just start shopping for a home? There are several reasons why. One of the biggest reasons is, you cant fully know what you can afford until this is done. If you hire an agent and they do not require you to be pre-approved before shopping for a home is only doing you more harm than good. This process can be an emotional one. If you start shopping and fall in love with your "dream" home. Submit an offer and becomes accepted. To later during the loan process be denied and you have to cancel the contract. Not only can this cause a lot of heartache it can potentially cost you more money. You can end up losing your earnest money as well. A lot of sellers do not want to see an offer unless a pre-approval letter is attached to it. When it comes to higher end listings you can't even schedule a showing without one. Other reasons are a lot of agents will not take on a buyer unless they are pre-approved. Most will sit down with you prior to being pre-approved and go over things with you on how to become pre-approved.
" A dream written down with a date becomes a goal. A goal broken down into steps becomes a plan. A plan, backed by action makes your dreams come true." -Greg Reid
Tip #3 - Decide on what you want and need
It is so important to look at your current life and what your future could look like. Really take the time to think of everything you may need and want in a home and the land it sits on. As a Realtor it is also my job to help you think of these things. How many bedrooms do you need/want? How many bathrooms do you need/want? What type of home most intrigues you, a rambler, multi-level, patio home, a basement? How much sqft do you want the home to be? The list goes on. It is also important to think if you purchase this home can you love it for longer than the honeymoon phase. What does this mean? Well when you walk into a home and you instantly love it you need to take into account. How many things do you want to change about the home? Are you willing to take on those changes? Or would it possibly be easier to look for a home that has little to no changes that need to be done? Are you willing to stay in this home for longer than 5 years? These are things you as a buyer need to think about. If you have owned prior then you need to think about. Why am I moving? What do I want to have in the new home I did not have before or did not like before? Trust me it is worth taking your time to think about these and it is ok to change what you think along the way when shopping for a home.
I have a buyers packet to help you with this part.
Tip #4 - Start Shopping
After you have completed the other 3 steps now it is time for the fun to begin! It is time to start shopping for your new home. With the market slowing down this will give you the chance to really take more time and look at several homes. You have time to think about the ones you saw and decide what you loved and did not love with each one. I understand with how the market has been buyers did not get this luxury. Well now you do so act on it and enjoy the process.
Tip #5 - Going Under Contract
Whaaooo! You had your offer accepted! Now the serious parts begin. You will have deadlines throughout the entire process and you MUST meet them. Some of those things are having an inspection, appraisal, and getting everything funded. We will discuss the importance of inspections and appraisals at a later time. When each of those reports come back you will need to negotiate with the sellers on fixing certain things and the dollar amount they are willing to spend to fix those things. (Pssst! This is another reason Realtors are important) Once those are all done and approved through the lender and funding is approved you can go to settlement. After settlement its closing time! On closing day when everything is funded and the sellers are moved out you get your keys. From there move in an enjoy your new home.
These are just the basic things you will need to know all about when you start shopping.
Having an agent on your side will really help this process go smoothly for you. It doesn't matter if its your first, second, third home etc... These will be apart of every single transaction. Let me know what other articles you would like to read about. If you have any questions or want to take the step to purchase real estate please contact me.
Thank you for taking the time to read my article. I can't wait to connect with you!