11 MUST-DOS for Buying Your First Home
Get prequalified with a lender if you’re not buying with cash. This way, you’ll find out how much house you can afford, and your estimated monthly payment. Then you’ll be able to start shopping for your perfect home based on your tailored budget.
Talk to a few real estate agents to determine who you want to work with. We all have different working styles, so find an agent that can best fit your needs.
Map out a timeline and make a list of must-needs and nice-to-haves for your future home. Your agent will help you with your search by sending you updates through the multiple listing service.
Go shopping! When your agent sends you something you like, it’s time for them to schedule an in-person or virtual tour. You’ll most likely see at least 10 homes before you find the perfect one.
Once you find the home you want, you make an offer. There are various ways to negotiate the offer for you to get the best price and terms that will fit your timeline.
Do your due diligence, and understand your timeline as outlined by your offer. When is your option period? When do you need to get the seller’s disclosure? When do you need to get HOA docs? How many days until closing? How many days do you have until buyer approval? Your real estate agent will be able to outline all the important dates for a smooth, stress-free transaction.
Get an inspection once your offer is accepted during your option period (btw always get an option period… you never know what could go wrong and a home is a very expensive purchase). Inspections are important because professional inspectors will give you more information about the condition of the home - especially in places where you can’t see. Is the air conditioner on its last legs? Are there cracks in the foundation? Is the electrical wiring not up to code? Your inspector is a detective looking for these problems.
Renegotiate if any faulty inspection items are found. Do this before your option time runs out so you can back out of the purchase and still receive your earnest money. Remember: everything is negotiable.
Once option period is over… whew! You’re almost there! You just need to find home insurance and get lender approval.
Prepare your down payment for closing day and make sure everything is good to go with your lender to fund.
Go to the title company, sign the closing documents, and get your keys!
(This process on average takes about 45-90 days. It really depends on when you find your home.)
