Becoming a homeowner can be an overwhelming process for a first-time buyer, and hiring a professional can simplify the whole process! From beginning to end, when working with Stormy you can expect an agent that will help guide you through all the steps. I've broken down becoming a homeowner into 7 simple steps to help show you how you can certainly make your dreams a reality, as long as you make it a priority. The steps to becoming a homeowner include:
- Get pre-approved for a mortgage: Before you start house hunting, it's a good idea to get pre-approved for a mortgage. This involves submitting your financial information to a lender who will review your credit score, income, and other factors to determine how much you can borrow and what your interest rate will be. This is most important because you never want to start house hunting, fall in love with a home, and find out you qualify for less, or even worse, not qualify in time to make an offer on something you already saw on the market. There are times people are hesitant to apply for a loan because the belief is that their credit isn't where it should be for a home loan, but in my time of working as an agent, I tend to find most are pleasantly surprised when finding the results of their home loan applications because mortgage companies don't necessarily pull the scores that you would see in say, Credit Karma. The worst that can happen is receiving a "No" to your application, but even then, we work with amazing lenders that help give you guidance on exactly how to get your credit where it needs to be for approval, even working with you on an approval timeline so that you continue to see the tunnel ahead of making your home-ownership dreams a reality.
- Save for a down payment and closing cost: Most lenders require a down payment of 3% to 20% of the home's purchase price, depending on the type of mortgage you get. Saving for a down payment can take time, so it's important to prioritize setting aside a portion of your income each month. Whenever working with someone looking to purchase a home, we sit down ahead of time to discuss exactly what costs to expect in the 1-45 days it takes to complete a home purchasing contract so that there are never any surprises to you as to how much you are paying out of pocket. Working with a Real Estate Agent has its advantages in this step because when you work with an experienced agent you have a master negotiator in your corner ensuring you are getting the best deal possible in the buying of your home.
- Start house hunting: Once you know your budget and have been pre-approved for a mortgage, you can start looking for homes that fit your needs and budget. Consider factors such as location, size, number of bedrooms, and amenities. Figure out what are your "non-negotiables" for your new home - for example, some families can't live in a home without a bathtub, others don't care for one; Some families need a large backyard, whereas others have a small low maintenance yard is ideal... Once you know what time of property you are in the market for, your agent will set you up to receive email updates that match the criteria of the type of home you're looking for. The amazing advantage of working with an agent in this step is that at times you receive the updates before they are even live on the market since the agent can send information on properties that are in "Coming Soon" status. Allowing you to be in the know about homes for sale before the public!
- Make an offer: When you find a home you like, you'll need to make an offer to the seller. Your Real Estate Agent will write up an offer on your behave to present to the seller and then begin the process of negotiations with the Seller's Agent. The Seller has the choice of Accepting, Declining, or Counter-offering.
- Close the deal: Once your offer is accepted, you'll need to secure your contract with the Title company. The very first thing you would need to do as a buyer with an accepted offer is deposit the earnest money to the title company, this money is not given away, it will be used towards the purchase of your home and your closing cost and secures your purchasing contract.
- Do your diligence: You'll need to go through a closing process to finalize the sale. This will involve getting a home inspection, sewer scopes, securing financing, and signing a contract. It can take up to 45 days to complete a home purchase, and your Real Estate Agent will be working their diligence in scheduling and reviewing all of these inspections and documents so that you only have to manage to pay and to sign along the way.
- Move-in: Finally, you can move into your new home and start enjoying the benefits of home ownership.
Overall, becoming a homeowner can feel like a lengthy process, but it always ends to be very rewarding. By taking the time to plan and prepare, you can increase your chances of finding the right home and securing the financing you need to make your dream of home ownership a reality. The real beauty of this whole process is the advantages you now have as a Home Owner, and if you were ever to outgrow your first home, you are now in a better position to buy your new home than you were to buy your first one. Just as families grow and change, so does the housing market. It is always a blessing to see a family plant the roots of their dreams in their first home and see the fruition of how that financial investment in Real Estate allowed their family to not only set their foundations but built on them.
If you are looking to buy a home and would like to schedule a free Buyer's Blueprint Consultation, you can schedule one below. Absolutely free, and we will cover all of your home purchasing questions!