Calling All First Time Home Buyers!

So you're ready to buy your first home? Let's take a walk through the process so you're prepared for every step!

1. Meet with a Lender

Before you start browsing $500,000 homes, let's make sure you know your budget! Meet with a trusted Lender (There's a good chance your Realtor knows PLENTY of them!) so they can walk through your finances and get you pre-approved. Don't be afraid to not be ready just yet, in the event your pre-approval doesn't align with your goals, make a financial plan with your loan officer to get your finances where you'd like them to be. 

2. Meet with a Realtor

Now that you know your budget, we can kick off your search! We'll get you a home search portal, so every listing that meets your criteria gets sent straight to you! As you find homes you like, we'll set up showings and attend open houses and filter your criteria as you see what's available. As of 2024, all buyers must sign a Consumer Guide to Agency, and a Buyer Representation Agreement! This ensures you're informed and protected when it comes to understanding how your Realtor is paid, and what duties you're owed as a client. It's not always the case anymore that the seller is going to pay the buyers agent's commission, so your Realtor will be putting their negotiation skills to the test! 

3. Make an Offer

When you've finally found the one, it's time to put in an offer! We’ll also review your contingencies, so you understand your rights to your earnest money if the contract falls through for reasons outside your control. Earnest money is typically 1% of the purchase price given in good faith that you will follow through with the contract, and is transferred to escrow with the title company. If the contract is completed, your earnest money will come back to you as part of your down payment or closing costs. Once your offer is submitted, the seller can accept, reject or counter your offer.  

4. Inspections

Home inspections are not required, but strongly encouraged! You are buying the home as-is where-is, so you want to be sure that no hidden latent defects are present. It’s also the perfect time to ask your inspector all the important questions about your future home, so that if something does go wrong, you’re prepared to handle it! Along with your inspections, you’ll need to be in contact with the title company to set up your escrow account and deposit your earnest money, while they begin the title search. Additionally, you’ll want to shop for home insurance. And finally, you’ll want to submit your formal loan application within 7 days of offer acceptance.

5. Appraisal

Your lender will chose your appraiser, and the appraiser will schedule an appraisal with the parties involved. This is the quiet part, where things are being wrapped up in the background, and you’re anxiously awaiting what we hope to be good news! Once the appraisal comes back, there will be three options: 1. The Home Appraises at Value; you will move forward with the contract and prepare for closing! 2. The Home Appraises at Value with Repairs; I will negotiate on your behalf to see if repairs can be made, or if you as the buyer are willing to make them yourself. If an agreement cannot be met, the parties can agree to mutually release the contract and you will have your earnest money returned to you. 3. The Home Appraises Below Value; In this case you as the buyer can come to the closing table with the difference, or we can attempt to negotiate a drop in price, or to meet in the middle. If an agreement cannot be met, there may be a mutual release of contract.

6. Final Walkthrough

Time for the final walk-through! 1-3 days before closing, we’ll walk through the property to make sure that any requested repairs were made- and up to expectations. We’ll also check for any new damage or defects to the property, to make sure there aren’t any surprises after closing!

7. Closing Day!

You’ll attend closing, which takes around 30 minutes. 3 Days before closing, the lender will send over your closing disclosures, entailing what you’ll need to bring for closing costs, and all of the final numbers for your interest rate and payments. Once things are signed on closing day, congratulations- you’re a homeowner!