The Home Buying Process: Part I
The home buying process, as with any large financial undertaking, has many distinct steps. Whether you’re a first time home buyer or someone who hasn’t purchased a home in many years, all these steps can feel overwhelming. But don’t worry, because we’re here to help!
In a three part blog series, we’ll be breaking down the buying process in detail so you can begin your home buying with confidence. In part one of the series, we’ll be discussing the first steps of choosing an agent, getting pre-approval & viewing homes. Part two will follow next week, where we’ll look at submitting and negotiating an offer. And in part three, we get into the details of what happens after an offer is accepted. Now, let’s get into the nitty gritty of home buying!
1. Choosing an Agent
The first step in buying a home is picking an agent to work with. There are a lot of agents out there, and you may be tempted to pick the first name you hear. Perhaps a family member or friend who recently got their license. And they may be a great fit for you. However, in a competitive market like the current one, experience can often give you an edge. We suggest being deliberate when picking an agent. Speak to more than one, ask them questions about how they work, if they’re full or part time, what their experience level is and determine if they seem knowledgeable about the areas or home styles you’re looking for.
Once you’re decided on an agent, it’s time to sit down with them for a more detailed discussion. Have a list prepared of your must-have features, preferred neighborhoods, size, price, etc. Your agent will also be able to help by suggesting neighborhoods or styles you may not have considered. Another point to note, is that as a buyer, your agent’s commission is nearly always paid by the seller. You get the advantage of working with a professional realtor without paying a thing!
2. Getting Pre-Approval
Now that you’ve picked an agent and narrowed down what you’re looking for, you may be eager to jump into viewing homes. This might even be the part you were most excited for! But before heading off to showings, setting a budget is critical. While you hopefully have a budget in mind, unless you’re planning to purchase in cash, getting pre-approval for a mortgage will be a must. You may believe you can afford a certain price point, but it’s better not to waste time on homes that are outside of the amount you’re approved for. Plus, having pre-approval signals to sellers that you’re a serious buyer. Especially important in a competitive market!
When you meet with a mortgage officer, you’ll need to bring a number of documents. These will typically include items such as government ID, pay stubs, bank statements, tax returns and W-2s. Before your meeting, the lender will likely supply a list of documents you need so you can prepare them ahead of time. If you haven’t gotten pre-approval and don’t have a lender in mind, ask your agent for some referrals.
3. Viewing Homes
Now it’s time for the part you’ve been waiting for – looking at houses! You’ll probably find some yourself that you’d like to look at, but your agent will also be key in finding potential houses. Your agent will have access to professional tools, like the MLS (Multiple Listing Service), and will set up customized searches that meet your criteria. It’s also a good idea to look at homes that may not be exactly what you want. You could be surprised to learn that certain features you thought were a must might not be as important when balanced against other factors.
Depending on the particulars of the areas you’re searching in, you may find a home you love right away, or you may have to look a little longer than you expected. However, if it’s taking longer, don’t get discouraged! New homes go on the market every day. Keep looking and you’re sure to find a great home – then it will be time to submit an offer!
We’ll be going into detail about submitting an offer next week. We hope this post has offered a bit of clarity on the beginning of the home buying process. Thanks for reading and we’ll see you back here for part two!
