The Home-Buying Roadmap for Beginners

Your journey toward purchasing your first home can be both exhilarating and daunting so we composed this blog to simplify the home-buying process, breaking down each stage into manageable parts. From securing your pre-approval to the momentous closing day and everything in between, our roadmap will guide you through the essentials of home buying.

1. Select A Real Estate Agent

It’s imperative to select a Real Estate Agent who prioritizes YOUR interests. Opt for an individual with extensive experience in selling homes within your vicinity and someone you can confidently depend on to guide you through every phase of the home-buying journey.

2. Obtain Financial Pre-Approval

The real estate market is dynamic, making preparedness essential for swift transactions. To accurately gauge your purchasing power, a loan officer will require key documents, such as a credit assessment and employment verification. While the excitement of a new home might tempt you to make other big purchases like a new car or furniture, it’s crucial to refrain from any actions that could alter your current credit status. If you plan to make a cash offer, you should still obtain a proof of funds letter showing you have sufficient funds to close to accompany any offer you make on a property.

3. Analyze Your Needs in a Buyer Consultation

Be transparent with your real estate agent. This is your moment to convey not only your visual preferences for a home but also the nuances of your daily life. By sharing these insights, you allow your realtor to pinpoint the ideal home tailored just for YOU.

4. Select Properties

Your realtor will monitor the real estate market and should notify you of any new listings that potentially match your home criteria. Should a property pique your interest, your realtor will arrange a showing for you at a time that suits you best.

5. View Properties

Whether touring virtually or in person, this is the fun part! It's important to keep a discerning eye during property showings. Working with an experienced real estate agent will ensure nothing is overlooked. Pay close attention to the condition of the property, looking for signs of wear, water damage, or any necessary repairs. Evaluate the layout and space to ensure it meets your lifestyle needs. Take note of the neighborhood and its amenities, as well as the proximity to schools, stores, work, and transportation. Don't hesitate to ask questions about the property's history and any potential issues. Additionally, consider the overall feel of the home; does it resonate with your vision of a comfortable and welcoming space? By being attentive to these details, you can make an informed decision that aligns perfectly with your desires and requirements.

6. Write an Offer to Purchase & Negotiations

You’ve found the property you want and are ready to make an offer! It’s time for your realtor to write up a purchase agreement. While much of the agreement is standard, there are a few areas that you can negotiate, such as price, move-in date, and additional property. This is where an experienced realtor is key as you can rely on their expertise to ensure you feel 100% confident you’re getting the best deal possible.

7. Offer Accepted!

Fantastic news – your offer has been accepted! At this stage, you will pay the escrow deposit (typically 1% of the purchase price) to the title company. Following this, you’ll proceed with property inspections and the loan application process.

8. Inspection Period

During the inspection period, buyers are entitled to hire a professional to assess the home’s condition. Expect a licensed home inspector to assess the home's structural integrity, electrical and plumbing systems, HVAC, and other vital components. This is a critical phase where potential issues can be identified. Be prepared to receive a detailed report that outlines any concerns or necessary repairs. While some issues are common and manageable, others may require negotiation with the seller. It's essential to maintain open communication with your real estate agent during this period, as they can help you navigate the inspection findings and guide you through the next steps. Remember that the goal is to ensure the property meets your expectations and is a sound investment.

9. Obtain Mortgage Financing

You’re on the cusp of finalizing your home purchase with the closing date now set. Your lender will order an appraisal, which is an estimate of the value of the property by a licensed professional appraiser. The goal of the appraisal is to verify the value of the property for the lender. If the appraisal comes back below the purchase price, you’ll be back at the negotiating table. Your lender will also require you to obtain a homeowner’s insurance policy before closing.

10. Prepare to Close

If the seller doesn’t have a recent and satisfactory property survey, the title company will order one for you. This survey provides a detailed map of the property ensuring you have a clear understanding of its boundaries. The title company will also review the property’s history to confirm its legitimacy, which includes checking for any outstanding mortgages, liens, judgments, easements, unpaid taxes, or other potential barriers to your ownership. Once the title is verified as clear and valid, the title company will provide a title insurance policy. You may be asked to pre-wire money a day or two before closing to verify you have all the necessary funds. Whether pre-wiring or bringing a check to closing, it’s important to make sure your finances are in order so the closing goes smoothly.

11. Close the Property

The closing day signifies the culmination of your home-buying journey. Come prepared with two forms of identification, ensure utilities are activated at your new home, and set aside at least 1 hour for the closing proceedings.

12. Take Possession of the Home

After closing, you'll receive the keys to your new home. It's time to celebrate and start planning your move! Don't forget to update your address with the post office, utilities, and any relevant institutions. Additionally, consider setting up a maintenance schedule to keep your property in great shape.

We hope you feel more confident and prepared for your home-buying journey. Remember, purchasing a home is a significant milestone, and having the right guidance makes all the difference. If you have any questions or need further assistance, don't hesitate to reach out.