Buying a home for the first time can be scary because it is such a large purchase with an unfamiliar process. However, the home buying process for first time home buyers doesn’t need to be overwhelming. This is a complete
Guide of the home buying process for first time home buyers:
1) Find an Agent
The first step of the Home Buying Process is to find an agent that you can trust. Ask friends and relatives for a referral. If this isn’t possible, then research agents by reading their reviews. Understand how the agent communicates with their clients. Most importantly, make sure the agent is familiar with the area you are looking for.
2) Talk With a Lender
The next step in the home buying process is to ask your agent for lender referrals. The lender will provide you with advice on the best loan programs to meet your needs. Prior to looking at properties, the lender will provide you with a pre-approval letter for the amount of your loan. This is your ticket to start viewing properties with an agent.
3) Viewing Properties
Once you are comfortable with the estimated monthly payment quoted by the lender, then you are ready to start viewing properties.
4) Making an Offer
It is recommended that you review the Contract to Buy in advance so you can act quickly when you have found the home for you. Listen to your agent. If it is a hot seller’s market, you will not want to negotiate on price and anything that impacts the seller’s net at closing which could prevent you from getting the deal. This would include asking the seller for concessions or to make cosmetic changes to the property (asking for new carpet).
5) Receiving a Counter Offer
Quite often even the perfect offer will be countered by the seller. This may be for dates and deadlines or simple corrections that are no fault of the buyer’s agent. When both buyers and sellers agree to the counter, it is signed and the contract becomes the counter with the original offer. This contract is then provided to the buyer’s lender and the buyer submits the earnest money to the title company to lock in the contract.
6) Inspection Process
The inspection process is often the most stressful part of the home buying process for both the buyer and seller. The buyer has the right to inspect any part of the property. They will then identify the items they want the seller to repair on an Inspection Objection or they can exit the contract if the items are too extensive. It is advised to the buyers to identify any health and safety items and anything that will impact their ability to obtain suitable insurance (ex. damaged roof). Cosmetic items are not repairs and should not be included on the inspection objection.
The seller will then decide on the items they agree to repair and document these in an inspection resolution. They may also recommend an adjustment to the sales price for one or more items for the buyer to complete. The seller may also exit the agreement at this point usually because the buyers and sellers cannot come to an agreement on inspection items.
7) Loan Process
While the buyer is working through the inspection process, they will start working closely with the lender to make sure they have everything they need to approve the loan. This includes past taxes, any legal judgments (divorce or past bankruptcy documents), pay stubs, etc. Sometimes it may seem like there is no end to this, especially if you own a small business or have investment properties.
8) Closing
This is the big day, when you sign for the biggest purchase of your life, obtain the keys to your next home and start building your wealth. At the closing, you will need a valid picture id to verify your identity to the notary. Then you will begin to sign documents that will transfer the property into your name and the loan documents. After all the documents are signed, you will receive the keys to the property and any additional information specific to gaining access to the property.
If you are in one of the metro cities and looking for an affordable apartment with all the modern amenities then Ozone Group is the right place to go. Visit OzoneGroups for more details.
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