First time home buyer - Now What? - @RealestRealty

by Sash Joveski

Buying a home is a significant financial and emotional investment, especially for first-time buyers. The process can be complex, so it's important to be well-prepared and informed. Here is a general outline of steps that first-time home buyers might consider:

Research and Planning

Determine Affordability: Know how much you can afford to spend by considering your income, expenses, and future financial commitments.
Save for Down Payment: Typically 20% of the home's price, although this can vary.
Check Credit Score: Your credit score can affect your mortgage interest rate.
Set Budget: Aside from the mortgage, consider other costs such as maintenance, property tax, insurance, and utilities.

Pre-Approval and Financing

Get Pre-Approved: Before you start looking, get pre-approved for a mortgage to know how much you can borrow.
Shop for Mortgages: Interest rates and terms can vary, so shop around.
Understand Loan Types: There are various types of mortgages (fixed, adjustable, etc.) — understand which is best for you.

Search for a Home

Make a Wishlist: Note down what you’re looking for in terms of location, size, and amenities.
Hire a Real Estate Agent: Although not strictly necessary, an agent can simplify the process.
Visit Homes: Go to open houses, schedule viewings, and consider multiple options.

Making an Offer and Closing

Do a Home Inspection: Always get a home inspection to identify any possible issues with the property.
Make an Offer: If you find a house you like and it’s within your budget, make an offer. This usually involves a written proposal and earnest money.
Negotiate: Be prepared for counter-offers and be willing to negotiate.
Sign a Contract: Once an offer is accepted, you’ll sign a purchase agreement outlining the terms of the sale.
Finalize Financing: Go back to your lender to finalize mortgage details.
Close on the House: This involves a final walkthrough, signing documents, and transferring funds.

Post-Purchase

Move In: Once everything is finalized, you can move into your new home.
Maintain Finances: Continue to budget carefully, factoring in mortgage payments and other new expenses.
Ongoing Maintenance: Owning a home involves ongoing maintenance to keep it in good condition.
Future Planning: Think about long-term aspects like home improvements, selling the house in the future, etc.

This is a general guide and specific circumstances can vary. Always consult professionals such as financial advisors, real estate agents, and lawyers to guide you through the specifics.