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Buying your first home can be an amazing milestone! But at the same time, taking such a large step in life can be overwhelming and sometimes scary. So, before you head out on your home buying adventure, keep reading to learn the steps to becoming a first-time home buyer.
What You Need to Consider Before Become a Home Buyer
Before you can step out and begin buying a home, you will need to consider a few critical questions.
- Are you financially healthy?
- Do you have savings for a down payment?
- Do you have good credit?
If you answered 'yes' to the above questions, it sounds like you are ready to become a home buyer.
The Home Buying Process
Now that you know you are financially prepared to become a home buyer, it's time to look at the process of buying a home so you can know what to expect.
Step 1: Know What Kind of Home You Want
Start by finding out what kind of home you would like to buy. Do you want something smaller like a condo? Or do you want a stand-alone home?
It would help if you also took the time to consider the features you want your home to have, such as a shed for storage or maybe even a pool.
Step 2: Know How Much Home You Can Afford
Once you have a wishlist, it's time to find out how much home you can afford. Then, you can get pre-approved for a loan by a mortgage lender before you go home shopping.
A pre-approval letter not only gives you a leg-up when making offers, but it can also help you not fall in love with a home that is out of your budget.
Step 3: Consider a Real Estate Agent
When you've got the pre-approval letter, it's time to find a real estate agent. While it isn't required for you to have one, they can be a big help to a first-time homebuyer. They can also help protect you from financial loss or a buyer trying to take advantage of you.
Step 4: Shop For Homes
This is the fun part! Search online listings, ask your realtor for recommendations, and work to find your perfect home.
Step 5: Make an Offer
Did you find your perfect home? Now is the time to ask your realtor to help you to put in an offer. Remember to keep closing costs in mind as you decide on an amount to offer.
Step 6: Have a Home Inspection
If your offer is accepted, you will be directed by your realtor to open escrow—a deposit shows you intend to follow through with a deal.
After this, you will need to hire a home inspector to check your potential home's condition. A realtor can often suggest a local home inspector they trust.
Step 7: Close the Deal or Move On
After the inspection comes through, you may choose to back out of the deal if there is something wrong with the home.
Otherwise, you will begin the closing process, which involves lots of paperwork. Your mortgage lender and realtor will help you navigate these steps.
Once you close on a home, you officially own it—congratulations!
Ready to Buy Your First Home?
Buying your first home may seem daunting, but if you know what to expect, it can be a fun process! Contact the expert mortgage advisors at Right Start Mortgage and you will be well on your way to buying your first home!
