Checklist For First Time Home Buyers

You’re finally looking to buy your first home and you’re as giddy as could be. It’s time to tour homes and fall in love with about half a dozen of them. But, of course, with any big purchase comes planning and execution. With such a large purchase, you may be wondering where do you start, how do you know if you’re prepared, and in what order should you be doing all of this. Lucky for you, we’ve put a list together to help you understand what to expect as you make your way from house-hunt to moving day.

• Determine what you can afford

Are your finances in order? This is essential to know what you can afford. We know, we know, that big beauty of a home with upgrades galore may be your dream home, but if you can’t afford it, you’ll be working like a dog to pay for it and won’t have time to enjoy it. To determine what’s in your budget, consider the following:

1. What is your monthly income?
2. What monthly payments do you have (auto, insurance, mortgage)?
3. Do you pay your bills on time? Do you have any errors on your credit report?
4. How much money will you need at closing? While this point will change depending on the final offer, you want to ensure you have enough put away just in case.
5. Get pre-approved

Shopping for a home may be exciting and fun, but if you’re a serious homebuyer, you need to start the process in a lender’s office, not at an open house.

You will benefit in several ways by consulting with a lender and obtaining a pre-approval letter. First, you will have an opportunity to discuss loan options and budgeting with the lender. Second, the lender will check your credit and unearth any problems. You will also learn the maximum amount that you can borrow, which will help set the price range.

Keep in mind that you should be careful to estimate your comfort level with a given house payment rather than immediately aim for the top of your spending limit. Lastly, most sellers expect buyers to have a pre-approval letter and will be more willing to negotiate with those who prove that they can obtain financing.

• Search for a home

Now that you’re pre-approved and have a better idea of what you can afford and still live comfortably, it’s time to search for your future home (exciting!). Before you hit the roads, try searching online on Zillow or Realtor to get an idea of what you’re looking for. Key factors include, bedroom and bathroom count, square footage, neighborhood preference, distance to work, school, etc. Even knowing the style of home you like will help narrow down your search so you don’t tire yourself out going in and out of homes. Create a checklist of what you NEED in a home and what you WANT. This will help weed out the homes that don’t fall under your criteria. 

If this search isn’t getting your far, drive through neighborhoods you like, ask friends who have purchased a home for tips, or ask your agent (if you already have one).

• Find a realtor

Assuming you don’t already have a real estate agent, now is the time to get one. Choosing the right agent is so important when purchasing or selling your home whether you’re a first-timer or have done this before. Take your time in finding one. Interview as many as you’d like, check out their reviews, set your expectations and make sure their values align with what you need or just give your local Musser Team a call 😉

• Visit open houses and tour homes

With your real estate agent and home checklist in tow, now it’s time to look at those homes you found online, in person. Visiting homes in person can help you identify the features that are most important to you. While walking through, check off what these homes hit on your checklist. At the end of your home search when you sit down to discuss the home of your choice, you will be able to go back and compare.

• Submit an offer

You have visited a number of homes, and you’re ready to call a house your home. While we know you may have fallen in love with a few of them, it’s time to make an offer on ONE that has crossed it’s T’s and dotted it’s I’s on your checklist. Your prepared offer that your agent will assist you with will include, established contingencies, obtained disclosures, and an established closing time. Be prepared that the seller could say no or negotiate. 

• Get a home inspection

Once you have an offer in, and before you close on the sale, it’s time to get a home inspection. We can’t stress this enough, get a home inspection. A thorough home inspection will help you identify any issues with the home and determine whether there are repairs that need to be addressed prior to close. 

• Get an appraisal

As you get closer to the close of the sale, you’ll have to get an appraisal. An appraisal is an estimate as to the value of the home and is required by lenders before issuing a mortgage. 

• Renegotiate

Say that issues arise during the home inspection making your home buying adventure to a halt. Any home can have issues, some smaller or larger than others. If an issue with a house will stop you from buying it at the price you offered to the seller, you may renegotiate. This renegotiated price will account for any repairs that need to be made. If the seller doesn’t want to budge, you may ask for them to pay for them. Please be aware that if this isn’t a possibility for the seller, you may need to walk away from this sale.

• Close the sale

You’ve made it. After the tears, sweat, and blood… okay, maybe just some tears and sweat, it’s time to seal the deal. All parties will come together to sign the papers and transfer the property over to its new homeowners, YOU!

Although the road of buying a home may seem daunting, you’re not alone. We are here to help and make sure this process goes as smoothly as possible.