As far back as you can remember, buying your first home has always been a dream of yours. Through the years, with each payday, you found a way to tuck a little money away. Now, the time has come. You have enough for a down payment.
However, you just found out there are more steps to take to buy your home; you wished you had known before. No one told you about credit scores, pre-approvals, inspections, or closings. What is a first-time buyer supposed to do?
We here at RealEZtate Pros meet with many first-time buyers. Unfortunately, the example above happens quite often. To help you plan your steps carefully, we have put together our First Time Buyer 5-Step Checklist. Whether saving to buy or you have your down payment follow these simple steps to streamline your home buying process and eliminate your frustration.
The two components of the purchase are, having a down payment, and securing the financing. To make the home buying process streamlined, a first-time buyer has to take control of their finances. Your credit rating, good or bad, will play a big part when applying for funding on a significant investment, such as a home. Having that pre-arranged before searching for a home is your best move. By having your financing, pre-arranged means you have the necessary credit to get pre-approved for a mortgage.
Understanding your mortgage approval limit, you will not search for homes out of your price range. With mortgage pre-approval, it lets you know what you can afford before you start searching. Also, having your mortgage pre-approved before you meet with a realtor or homeowner, lets them know you are serious and ready to buy.
Purchasing a home is not without its stress and emotion, which is why you have to be selective when searching for a home. There is much work involved in this step. Ask yourself what you want in a home. What are your specific requirements in terms of location, amenities, rooms, bathrooms, and other features? We recommend creating a checklist and jotting down notes while searching. If you are not sure or have doubted you are looking at the right home, consult with your RealEZtate Pros.
The home inspection step is crucial. Once you find the home you want, have it inspected first before making an offer. The results of what the inspector finds could prevent you from investing in a home needing overdue remodeling once you take possession. Inspectors will survey the plumbing & electrical systems in the home as well as the roof and the structure itself. Make sure on the purchase contract that it states the house must pass inspection first. Even though you, not the homeowner, must pay for the home inspection, whatever you do, under no circumstances ever skip this step!
At this point, you have your credit sorted out, financing pre-arranged, mortgage pre-approved, the home passed inspection, and your offer was accepted. The final step is when you can take possession of the house. Congratulations! You have bought your first home!
As a first-time buyer, I’m sure you have additional questions and concerns about the real estate process. We invite you to give us a call today so we can assist you with buying your first house.