A STEP-BY-STEP FIRST TIME BUYER’S GUIDE
Buying a home is one of the most exciting milestones of your life. To prepare yourself for this moment, you need to know what to expect during the process. This step-by-step first time buyer’s guide created by your agent will help reduce the stress of buying a home and help you enjoy the journey as much as possible.
STEP 1: RESEARCH
Do you already know where you want to buy? If you want a condo, townhome, or single-family home? Which features do you like and dislike? What’s available on the market now? If you answered no to any of these questions, now is the time to start researching. In addition to looking for homes that interest you, also take note of any changes in asking prices. This could give you valuable insight into housing trends in specific neighborhoods and help you when the time comes to make an offer.
STEP 2: GET PRE-QUALIFIED AND DETERMINE YOUR BUDGET
Knowing how much you can afford is just as important as how much you’ll be able to loan. Now a Pre-qualification is different from a Pre-approval. Be sure you do BOTH! The Pre-qualification is a rough estimate based off of information you provide to the mortgage company. This is typically free and done over the phone or online. This is not as definitive as the pre-approval. This gives you your ballpark range. It’s always suggested to have a pre-qualification when you meet with your agent so it becomes easy to find you homes you might not have seen.
STEP 3: CHOOSE AN AGENT
Can you shop for, look at, and ultimately make an offer on a home without a real estate agent? Not only will I help identify properties you might be interested in, arrange showings, and ultimately handle the offer process, but I also have a knowledge of the market that you don’t possess.
STEP 4: GET PRE-APPROVED
“Wait, didn’t I just get Pre-Qualified?” Yup, that gave us the generalized budget and allowed us to get the search going. The Pre-approval is a more pinpoint amount. This is the “I’m seriously looking” moment and when you get the seal of approval for your budget. This is handled by you and the Mortgage company you want to use. Some companies allow you to “Lock in” your rate at that time. Helping you out if rates increase during your search.
If you have questions or want additional recommendations I am happy to provide you with some I have used in the past.
STEP 5: FIND THE RIGHT HOME
This should be the most enjoyable step of the entire process (other than moving in!). I will arrange showings of homes you’re interested in that are within your price range. Take notes about what you like and don’t like, and make sure to pay attention to details. Turn light switches on and off, open and close doors, and run the faucets in various rooms. Don’t limit your inspection to the home itself. Make sure to take time to explore the neighborhood and keep an eye on traffic at certain times of the day, the parking situation, and how close it is to necessities like schools and grocery stores.
STEP 6: MAKE AN OFFER
Once you have selected the perfect home, work with your agent to craft a fair offer based on the value of comparable homes on the market. Depending on what the home is listed at and whether the current environment is a buyer’s or seller’s market, your offer may be below, at, or even above the asking price. I will be able to help you negotiate if you receive a counteroffer and reach an agreement. At this point, the house will go into escrow.
Negotiate, Negotiate, Negotiate
The most important part of the transaction is making sure that you are receiving everything you need and want from the home. The best agents know how other agents work and how to get you the best outcome. The wrong agent can make the buying process a mess.
STEP 7: HAVE THE HOME INSPECTED
In most cases, your offer will be contingent on having the home inspected to ensure there is no major structural damage or large repairs needed. I can help you arrange this, and you can schedule it within days of making an offer. If there are no major issues, the process goes to step eight. If there is, you can renegotiate your offer based on what needs to be fixed, or you can withdraw it.
STEP 8: SELECT YOUR LOAN
Now is the time to go back to the mortgage lender who pre-approved or pre-qualified you and choose your mortgage. You will be presented with various options based on your unique financial situation, including fixed-rate, variable-rate, 15-year, 30-year, or special programs such as VA loans or FHA loans. Work with your mortgage lender to select the option you feel the most comfortable with.
STEP 9: GET A HOME APPRAISAL
Your lender will have your new home appraised so they have their independent value of it. The appraisal is to ensure that all parties involved are paying a fair price for the house.
STEP 10: FINISH PAPERWORK
No one looks forward to all the paperwork involved in buying a home, but it’s a necessary part of the process. Fortunately, everything will be arranged by your lender and title company and, when you’re finished, you’ll know you are the legal owner of your new home.
CONGRATULATIONS!
After signing the final paperwork to complete the purchase, you are now the owner of a new house. It may take a few days for your loan to be funded once the paperwork has been returned to the lender, but once that check is delivered to the seller, you’ll be all set to move into the home of your dreams.
Work With Nesso
If you are interested in buying or selling property in Bellevue, Kirkland, or the Greater Seattle area, please reach out to me any time! I would be honored to help you in any way.
