So, you’re looking to purchase your first home… Now what??
Purchasing your first home is an exciting process, one you’ll likely remember for the rest of your life. It’s exhilarating, while also a bit nerve wracking. After all, there are so many steps, tasks, and requirements, and mistakes can end up expensive. Luckily, first-time homebuyers enjoy special advantages created to encourage and ease the process into the market. Financial assistance from state programs, significant tax breaks, and secure, federally backed loan options are all available. In addition, trusted industry professionals such as lenders, realtors, and title agents are skilled at assisting buyers navigate successfully though every phase.
If you’re considering purchasing a home within the next several months to a year, and wondering where to begin, I’ve recapped some of the best guidance below. Take a look and always feel free to reach out if you have any questions or thoughts on the process.
Step 1: Determine Your Budget
You’ve been saving up for a down payment, maintaining a good credit score and established tenure at your job. Congratulations, these are all great steps!
Now, it’s time to connect with a professional lender to determine the exact budget that fits your goals, find out what loan assistance may be eligible and secure the lowest rates available. You’ll learn about different loan types, review how your price range is calculated and find our what your total monthly payment will consist of.
As a buyer, your best practice would be to set appointments with two or three trusted lenders and then select the option that’s best for you. You can brows online for lenders with great reviews, ask friends and family for recommendations or check with your realtor about who they have found to be the best in the business. Any decent realtor will have experience working with great lenders and can provide you with an accurate picture of exactly what to expect.
Step 2: Set Up Your Home Search
Once you’ve completed the critical step of securing your home loan, it’s time to go shopping! Ok, that’s putting it lightly… but it is essentially the same thing. Now is the time when you get to discuss the fun details with your realtor. Do you want a two garage? What areas of town do you like best? What fits perfectly into your budget? Maybe high ceilings and tons of natural light are a must. These are all things that you and your realtor take into consideration and use to create a customized property search.
The benefit of a home search is real time, continuously updated information within your market so that you are best prepared to act once you find the right property. If you’re in a fast paced market, such as Denver, you’ll need to act quickly and communicate with your realtor in order to win the property.
Step 3: Submit Your Winning Offer
This is where the real magic happens, my friends. In Denver, it’s important you’re fully prepared to face the competition… aka other home buyers (eeek)! When you’re ready to submit an offer, a great agent will help you determine exactly what the home is worth, as well as what the public is willing to pay. Make no mistake, these can be two very different things. The average home in Denver sells within the first 5 days of being listed and with multiple offers above asking price.
With the competition this steep, you may be wondering how the average home buyer can expect to win. This is where agents come into play, are ready to go to battle for you and use tactics beyond just “highest and best.” A well thought-out offer includes a reputable letter of loan approval, an enticing earnest money check, a strong buyer letter and a contract that’s structured around what the seller specifically wants.
Deals can fall apart easily and for a variety of reasons. A decent listing agent is going to not only encourage a seller to select the highest price, but also the deal that is most likely to be successful.
Step 4: Mastering The “Under Contract” Phase
Congratulations, you’ve gotten the home of your dreams under contract! At this point, your team of professionals, along with the seller’s team, complete each due diligence step necessary to transfer the property to your ownership. This includes reviewing and submitting title work, inspecting the home for health and safety concerns, appraising the property’s value and reviewing any additional documents such as HOA packets.
It’s important to remember that this step is specifically designed to protect you as the buyer. Your realtor will help look beyond the surface of the home to make sure it’s the right pick for you. If something is not in alignment with your needs and goals, you will have the opportunity to further negotiate and can rely on your agent to advocate for you.
Bonus Step: Gather Your A Team In Advance!
If the above steps still look daunting, and downright complicated, there’s great news… it’s the job of your selected home buying team to make the process easy for you! While it’s absolutely recommended that you learn during the process, it’s highly unlikely you will be an expert after one purchase. That’s why professionals in the industry are so valuable. From on-going training, to market updates and real world negotiating experience, it is the job of the team you select to help ensure you have a positive and rewarding experience.
Ready to start the process or want learn more?
Alexandra provides valuable information including online courses, personalized consultations, customized home searches, up-to-date industry information and more…
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