It’s no secret that when it comes to purchasing a home there are a lot of steps involved before you are handed the keys. Surprisingly, even though it is common knowledge that so many steps are involved, they often aren’t talked about until it is time to start buying which can leave the buyers overly stressed and unable to enjoy their home buying experience. There are essentially 10 simple steps that are a part of nearly every home purchase, and while in some cases there are a few less or a few more, when purchasing a home you can expect to work your way down this list.
#1 How much can you afford? Determining your budget is crucial and of course, the first step in the home buying process. Always try to stay below your maximum budget to help with any hiccups that may arise down the road.
#2 Obtain Pre-approval. You will be unable to purchase a home without first obtaining a pre-approval letter from a financial institution, talk to friends or family to see if they have any recommendations within your area.
#3 The home search! This is more of putting down on paper what you are looking for than searching for the actual home. Discuss the size, location, style, school zones, etc. that you are looking for in a home so you have a clear list describing the home you want
#4 Find your agent. It is always recommended to use an agent that has great ratings, however, oftentimes, your friends or family may have a great referral to an agent that they’ve used in the past. Use your connections to find a qualified agent you can trust.
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#5 Time to tour homes! Provide your agent with your wish list you created in step #3 and then attend open houses and set up tours that your agent feels would fit your search criteria.
#6 Make an offer. Once you’ve found a house you want to make a home, it’s time to submit your offer! Your agent will guide you through this and give you feedback and advice.
#7 Home Inspection. Upon acceptance, you will then be responsible to get a home inspection completed. This step is crucial and protects your investment.
#8 Appraisal. An appraisal is required and protects both the seller and buyer by providing both parties with the current homes value. This lets the buyer know they are paying a fair price, and the seller is made aware that they are getting the money their home is worth.
#9 Time to negotiate! Should the appraisal or home inspection show any unwanted problems or needed repairs, you can finalize your offer, change your offer, and settle on a final sale price.
#10 Closing. It’s now time to close! Congratulations, you just bought your first house!
There may be a lot of steps, however, with the right agent buying a house should be a relatively simple experience. There will be a lot of paperwork and you will need to provide documentation throughout the journey, but in the end, unlocking your front door for the first time will make the process worth it.
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