Seven Steps You Need to Follow When Buying Your First Home

Monday, February 8th, 2010 at 5:06 pm

Time and again, I hear a new client say, “I want to buy a home. What do I need to do?”

It seems like such a simple question! But answering it for someone who is not involved with the many details of home buying on a daily basis, well… that’s a difficult task.

I will try to summarize the home buying process in seven simple steps. This will get you started. If you have more questions – and I bet you will – then give me a call and I’ll help you along.

The seven steps are:

Proof of Financing. It is crucial that you can show a prospective seller that you either already have the cash to buy a home, or that you can obtain a large enough mortgage loan. Otherwise, you should not be house hunting in the first place. A letter from your bank stating that you have sufficient funds available will suffice, as would a pre-approval letter from a lending institution. Call me if you need referrals for loan officers.

List of Requirements. Make a list of all the features you want in a home, including its general location, school district, square-footage, finished basement, garage, yard space, etc. Also it’s very important to list the price range of home you can afford. Then drive around the neighborhood and get an idea what properties are available. Take down the addresses of all the properties listed for sale.

Work with a Real Estate Agent. It is best to work with a full-time realtor. This will not cost you anything, by the way. Your realtor’s commission will be paid by the seller upon closing of the property. You want to find a realtor who has been successful at closing transactions in the past and who specializes in representing buyers. Beware engaging the services of someone who works in real estate as a hobby, even if it’s a family member or friend. If you don’t have a realtor yet, give me call and let’s talk.

House Hunting: Your realtor will send or email you listings that match your requirements (from the wishlist in 2.) Take a look at these listings on the internet. Most listings come with pictures, maybe even videos and digital walk-throughs. Choose the top 5 listings and ask your agent to schedule showings. When you walk through houses you may want to bring a camera and a notepad. After looking at 5 homes you may get confused about the special features each of them offers. It usually takes 5 to 15 showings (maybe 3 trips) to find a house that meets your criteria. Sometimes you will have to be a little flexible – the perfect house does not always exist in your price range and area.

Make an Offer: If you find yourself imagining your furniture in a particular home you toured, that’s a good sign that you should make an offer to buy the property. Your real estate agent will provide a standard Purchase Agreement, and help you come up with an appropriate asking price. She will also talk you through any terms of contingencies you might want to include in the offer, including necessary repairs, responsibilities for closing costs, etc. Once you sign the Agreement, your realtor will submit it to the seller’s agent.

Property Inspection: Once your offer is accepted, many steps have to be put into motion. First you’ll have to go to the lender who pre-approved you and submit your final paperwork for the official loan. At the same time, the lender will order a title search, and a property appraisal and survey. You will need to hire the services of a home inspector, but your realtor can schedule the inspection with the seller. Plan to accompany the inspector on his tour of the home. He will probably spend 2-3 hours examining the house from top to bottom and will explain to you whatever he sees along the way. You will learn a tremendous amount about your new home from him, including the condition of the roof and in what timeframe you might need to replace it. The inspector will send you a written report which you should review with your realtor. Depending upon the findings, you may need to go back to the seller o request remedies to problems.

The Closing: This is the final step in your home purchase. After a successful inspection and appraisal, your agent will schedule a closing at a title company. This is where sellers and buyers meet sign all documents to finalize the transfer of the property and where you will sign the loan documents, if you get bank financing. The title company will insure that you buy the property free and clear of any liens. They will also record your deed to the home and the mortgage you sign for your lender. A typical closing takes half an hour to an hour, and your agent and your loan officer will be there to assist you with any final questions. When all is signed you will get the keys to your new house.

After all the paperwork has been signed, you’ll be handed the keys to your new home. That’s it! The whole process may be confusing at first, but an experienced realtor can guide you and make your first home purchase easy.

Author Susanne Novak is a long-time Columbus realtor specializing in helping home owners buy properties at discounted prices. Read her blog to find and buy the best Columbus OH Homes for Sale.

Share and Enjoy: