Steps Every First Time Home Buyer Should Know
Buying your first home can be a very exciting and emotional time, as it’s one of the biggest financial decisions you’ll make. As a first time home buyer, there are some steps you need to consider when you decide to purchase a new home. These steps include:
- Create a budget and consult with a mortgage broker or lender to discuss your mortgage options.
The first thing you will need to consider as a first time home buyer is the cost of the house. Prior to getting in the market it’s important to have a clear idea of your monthly expenses, including any debts to help you get a realistic picture of how much of a house you can truly afford.
Once you’ve determined a budget, you should start looking into mortgage options. Find a mortgage broker or lender to go over your numbers with you and get you a pre-approval so you can start house shopping.
- Get your professional team in place.
Once your financing is in your order now it’s time to find yourself a realtor you trust to help you find the right house. Along with finding your realtor I would also advise being proactive and start finding all the other key players needed to help get you into your dream house. You will also need a lawyer, home inspector and insurance company/broker. If you don’t already have people in mind you’d like to use you can always ask your mortgage broker or realtor for referrals, they’ll be happy to help.
- Start house hunting. Be sure to create a house wish list.
Now that you have your pre-approval, your mortgage broker, your realtor and the other members of your professional team in place. It’s time to start house shopping!
Start by making a house wish-list if you haven’t already done so. Write down a list of all your needs and wants for your house so your realtor has a clear idea of what you are looking for. If there are things like the location, number of bedrooms/bathrooms and size of the backyard that you are not willing to compromise on be sure to communicate that to your realtor.
- Make an offer and get a home inspection.
Once you’ve found the right house for you, it’s time to put in an offer. Letting your realtor know ahead of time the maximum price you are willing to pay is a good idea so they know how much room they have to negotiate. Buying a house is a huge investment so it’s important to get a home inspection done before you purchase it, even if it’s a new house. An inspection will ensure the house is in good condition and you won’t end up spending any unnecessary money after you move in.
- Finalize the deal
So the inspection went well and they accepted your offer. Now it’s time to meet with your mortgage agent to get the final approval on your mortgage and meet with your lawyer to finalize details like house/ title insurance.
- Closing day, prepare to move.
It’s the big day; your closing day has arrived. Congratulations you are officially a homeowner! Here are your keys. By now the lawyer will have completed the paperwork to ensure the house is officially in your name and any outstanding payments are made. Be sure to set up your utilities (internet, gas, water, phone, cable etc) and forward mail to the new address.
Follow these steps to ensure a successful first-time home buyer experience.
