The 8 Step Home Buying Process for a First Time Home Buyer

When you are considering buying a home, its not just a case of finding a home and all is well, there are many extra responsibilities that come with that Home Buying Process and purchase. Maintenance and upkeep, utility bills and extra-ordinary costs that may come your way. These are the steps involved in the home buying process, particularly with the first time home buyer in mind!

Step 1: Are You Credit Worthy?

A few months before you are ready to buy a home, it would be a good idea to check your credit scores and repair any bad debt or pay up accounts so that you can qualify for a mortgage at a good rate. Your credit scores would normally be between 300 and 850 and the higher the score the better loan you will qualify for. Check your credit report and be sure that there are not any errors on it and if you need to query items on it, you should do that straight away. You are entitled to one free credit report a year.

Step 2: How Much Home You Can Afford?

My suggestion would be to contact a good mortgage loan representative and let them figure out how much you can qualify for. There are many different mortgages rate options - fixed rate, adjustable rate and interest only mortgages. Be confident that you understand the pro's and con's of all. Be sure to ask your mortgage representative and your broker about the size of the down payment you may need. Today you don't always need a 20% deposit as there are opportunities to own with little or no downpayment. Your real estate broker may be able to ask the seller to assist you with closing costs so that you can use your funds for a good down payment - talk to your broker about this. Make sure that you have a mortgage pre-approval as this will give a seller confidence in accepting your offer.

Step 3: Choosing the Correct Real Estate Agent for You.

When choosing a Real Estate Agent to represent you, you may need to talk to two or three to see who you most relate to, who will give you their best attention and one who will take your circumstances and your finances into account when negotiating for you. Go to the meeting with a list of questions and find the one who makes you feel most at ease, who has experience and who will represent you well.

Step 4: Choosing the Perfect Home.

Make a list of the non negotiable items that must be in your home AND in the neighborhood. Then decide on the neighborhood - taking into consideration things that are important to you - e.g. distance from work, shops and schools, safety. Ask about the home appreciation in the area and visit the neighborhood in the daytime and the evening to get a good feel for the area.

Step 5: Make an Offer on the Home

Now that you have found the perfect home, you are ready to make that offer. In todays market, the Sellers are frequently on the receiving end of many offers if their property is priced correctly and you may want to prepare yourself to consider an offer that is fair and right for the Seller. If you have chosen to go with a Mortgage pre-approval, you should be one of the more favored offers the Seller will consider. You would be required to make an earnest money deposit, however small - to show good faith to the Seller. The earnest money deposit would form part of the purchase price.

Step 6: Closing Costs:
Closing Costs can be a surprise if your mortgage banker | Agent haven't gone over the cost of purchase with you. These costs can include title fees, home inspection, attorney fees, property taxes, title insurance, appraisal fees and more. Sometimes the Seller will assist with those costs, but you would be responsible for them and you should budget accordingly.

Step 7: Close on Your Home
It would always be a good idea to get a home inspection done on the property you are going to purchase. It ensures peace of mind as far as the property's structural soundness and condition.

Choosing the closing date needs to be fair and able to meet the needs of both you and the Seller. Ask your Real Estate Broker for their opinion in this matter as the seller may still have to find a home or close on their new home and the dates must be viable for all parties.

Step 8: Time to Move.

The closing is now completed, and its time to move in to your new home. Its a wonderful time to put your own personality, colors and charm into your own space. There will always be things to do to a new home, but take a week or two to familiarize yourself with your surroundings before you make hasty decisions and costly mistakes.

Its so lovely to own your own home! Congratulations! Its the fulfillment of The American Dream!

Hi, I am Don Johnson from the Don Johnson Real Estate Team. I would love to assist you in your home buying process. I am a licensed Property Inspector, a Licensed Contractor and a Licensed Real Estate Broker with lots of experience across the board. I would love to assist you in your home process. Contact me for a confidential coffee and chat, I would be happy to answer all your questions. Don@DonJohnsonRealty.com or call 919-473-3578 

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