So you’ve decided you want to part ways with your landlord (or your parents) and become a homeowner. The only problem? Where do you start? If you aren’t sure where or how to begin the process or whom to talk to first, here is a helpful guide with 10 steps to buying a home.
1. Is it right for you?
The most important step is the decision that starts it all. If you’re like the average first-time home buyer, you’re in your early 30s and ready to make the most significant financial decision of your life. Are you ready? If you have a spouse, make sure they are on board and ready to start this journey with you. If you’re having doubts that buying a house is a good financial decision, you can be confident it is, so long as it is within your means. It is well-established that homeownership is one of the best paths to building wealth. Real estate is one of the safest investments out there and will only become more valuable with time.
2. Get your credit ready and save, save, save
Purchasing your first home is no small feat. You are borrowing more money than you ever have before, so you will need to make sure your finances reflect that you are a responsible and trustworthy borrower. If you have a poor credit score and no savings, it hurts your chances of qualifying for a loan. So, budget your finances wisely, pay down as much debt as you can, and start building up that savings account.
3. Talk to a lender & get pre-qualified
You’ve saved and your credit looks promising, now it’s time to find out what you qualify for! Cheyenne has many excellent mortgage lenders to choose from, but some might be able to offer better rates than others or you might get along with certain personalities more than others. Don’t be afraid to meet with several lenders until you find someone you feel comfortable working with. Your leader will help you determine if you are eligible for a mortgage loan or what you need to do to become eligible, how much you can qualify for, and which type of mortgage loan suits you best.
4. Find the right agent
The process of buying a home can be stressful, and things can get complicated in a hurry with contracts, counteroffers, inspections, and closings. You’ll want someone knowledgeable by your side who has your best interests at heart. This is why having a good realtor is a must. A good agent will be your advocate, provide honest advice, and be your friend and guide through every step of buying your first home. We have many excellent agents at RE/MAX Capitol Properties, any of whom would be a great choice to guide you to your first home. We are a family and community-based culture that focuses on providing excellence, honesty, and comfort to our clients. Just like with your lender, your realtor should be someone you feel comfortable with.
6. Go house hunting
Now for the fun part, house shopping! During this time, you and your realtor will be looking at houses together, weighing the pros and cons of different properties, and narrowing down must-haves. This part of the process can be stressful and even overwhelming, but if you have a good realtor by your side, they will work to make sure you have as little stress as possible until you find a house that you could call home.
7. Make an offer
Once you find a property you love, it’s time to make an offer. This can be a delicate process and you’ll be glad to have a good realtor through this step. There are several factors that you’ll have to consider such as days on the market, the condition of the home, and the work needed to be done. Your agent will be able to provide insight into the market and advise you on what to offer.
Congratulations! You’re officially under contract. It’s customary to schedule a buyer’s home inspection to ensure there aren’t any unexpected issues with the house. Inspections can tell you if there are any red flags in the house and help you determine what final negotiations are needed.
9. Final negotiations
With the inspection results back, your budget set, and your home chosen, it’s time to make any final negotiations. This will outline the details of the sale, negotiated repairs, fixtures, and appliances included in the sale.
Schedule a final walk-through and make sure your negotiated repairs have been completed. If your lender requires you to purchase a homeowners insurance policy, be sure you have that arranged. Once all of the requirements have been met and your mortgage is approved, you will sign all your final documents on the closing date and be handed the keys to your new home.
If you are interested in beginning the journey to your first home, don’t hesitate to reach out to a real estate professional at 307 635 0303. Our agents are happy to provide further details and answer any questions you might have about the process.
Thank you to Donica Wilkins for sharing these tips with us!