Buying your first home is one of life’s biggest milestones — and likely one of your biggest investments. As exciting as it is, it can also be quite overwhelming. After all, a lot goes into the home-buying process.
Understanding what to expect can help ease fears and give you the confidence to navigate the journey. Here’s what you need to know.
Know Your Budget and Get Pre-Approval
Knowing your budget is the first step in buying your first home. You will want to ensure that your credit is good and that your debt-to-income ratio meets the requirements. Take care of any outstanding debt you have and grow your savings.
This is a great time to research first-time homebuyer programs to see what is available. There are many incentives out there that may help you get into your place with a reduced down payment — and with tax breaks, too.
Apply for a mortgage to obtain pre-approval. This gives you an idea of your price range for buying the property and lets the agents and sellers know you are serious about purchasing.
Find the Right Real Estate Agent
Finding a trustworthy real estate agent is imperative. You need someone who can understand what it is you are looking for and will help you find the right home. They must also be assertive and experienced enough to engage in negotiations and answer any questions you may have.
The right real estate agent will be easy to communicate with, ensuring you have everything you need to get through the process successfully.
Find Your Dream Home
Your next step will be finding your dream home. Consider this the fun part of home buying. After you discuss what you want your future house to have, your real estate agent will go on the hunt for listings that tick all your boxes.
They will set appointments to view the properties until you find the one that has the ‘it’ factor for you.
Make an Offer and Negotiate
When you find the property you want to buy, make an offer swiftly. Remember the quote by Koki Adasi — “The house you looked at today and wanted to think about until tomorrow may be the same house someone looked at yesterday and will buy today.”
Time is of the essence.
Keep in mind you will need to be prepared to deliver your earnest money deposit if your offer is accepted. This amount is typically equivalent to between 1% and 3% of the sale price of the home. However, it can be higher if the market demand is up. Note that this is not your downpayment.
Inspection and Appraisal
Your accepted offer gets the ball rolling and an inspection and appraisal will occur next. The home inspector will physically look at every nook and cranny of the house, making sure that it is a solid investment without any concerns, such as foundation issues, mold, termites, etc.
The lender will have the property appraised. This, too, is about making sure the home is a good investment. After all, lenders often have a hard time lending a lot of money for a home that is worth very little.
Title Search and Closing
The title company handling your transaction will perform a title search. This confirms that the person selling the property actually has the authority to do so. They are also looking for any title issues that may impact your ownership rights. You will also be offered a title insurance policy to protect those rights for as long as you have an interest in your property.
Once the title is cleared to close, it is often your title company that will facilitate your closing. Here, paperwork is signed, money is transferred, and you officially become a first-time homeowner. Congratulations!
Let Us Welcome You Home
At Shepherd Homes Group, we are the top real estate team in Northern Virginia. If you are looking for real estate experts who can help you find and secure your first home, you’ve found us.
Contact us today at (703) 997-1462 to find your realtor.