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FIRST TIME HOME BUYER
Getting into your first home can be frustrating and stressful, especially because the loan process is so new to you. Nearly all home buyers feel the same way, even if they've bought a home in the past, because it's easy to forget the steps you took to get into a home once it is all behind you.
WHERE DO I BEGIN? You're Only 10 Steps Away From Buying Your New Home
You'll feel more confident about your home buying journey when you understand what is required of you and every other person who is involved in your transaction.
 Step 1 - Get Your Finances in Order
Your credit reports are an ongoing look at how you manage your finances. You must know exactly what your credit reports say about your financial history before you apply for a mortgage, because the reports play an important role in the mortgage approval process and in determining the interest rate and other loan terms that a lender can offer you.
If you haven't looked at your credit reports, you might be surprised at their contents, because errors are very common. Click here to request a free credit report and consultation from Bicoastal Lending Group.
Step 2 - Get Familiar with the Mortgage Industry
Finding the right loan and lender is crucial to your home buying success.
It's up to you to determine which lender is best for your needs, and it's always a good idea to have at least a bit of background about the loan process before you talk to a lender.
Step 3 - Get Pre-Approved for a Mortgage
Do you know how much house you can afford? Probably not, unless you've talked with a lender.
Pre-approval helps you in other ways. Consider this scenario. A home seller gets two similar offers. One is accompanied by a letter from the buyer's bank that states she is pre-approved for a mortgage in the amount of the offer. The other has no supporting documents. Which offer do you think the seller will consider first?
Step 4 - Determine Your Wants and Needs
Buying a home isn't as difficult as you might think, even if you're short on funds, but the process will go a lot smoother if you get familiar with your real estate market and narrow down your wants and needs before you start looking at houses.
Step 5 - Learn to Work with Real Estate Agents
Real estate agents represent buyers, sellers, or both -- and in some states they can work as neutral facilitators for either party. It's essential to understand agent duties and loyalties before you make that first phone call.
Step 6 - Start Searching for a Home
Your agent will give you multiple listing sheets to study. I'm sure you'll also pick up "House For Sale" magazines and read classified ads in your local newspapers. You'll probably spend time surfing the Internet for homes. You might even plan afternoon drives to preview neighborhoods. Those are all excellent ways to see what's available.
Step 7 - Make an Offer
There's no one set of instructions that can cover all the differences in real estate laws and customs that exist throughout the United States, so the mechanics of making an offer and its specific contingencies depend greatly on your location. It is best to work with a real estate agent who is trustworthy and who knows what he or she is doing in this area.
Step 8 - Home Inspections and Other Tests
In some states, home inspections are accomplished before the final purchase contract is signed. In other states, inspections take place after an offer is finalized. No matter when you do them, it's critical to decide which inspections and tests you want to perform.
Talk with your real estate agent or other advisor to find out when inspections should be handled and if additional types of testing are important for your specific area.
Step 9 - Avoiding and Correcting Last Minute Problems
As your closing date nears, everyone involved in your real estate transaction should check its progress on a daily basis, because staying on top of things means you'll know immediately if there's a problem that must be dealt with. Even simple problems can be a burden when you have so many details to take care of, so don't over-react if you hit a few snags on the way to closing. Keep a cool head and work with the people helping you through the transaction to resolve any issues that pop up.
Step 10 - Take a Final Walk-Through
All home buyers should plan to make a final walk-through inspection of their new homes prior to closing in order to make sure the condition of the property is the same as it was on the day you signed your purchase contract. You should take an early walk through to check repairs agreed to by the seller, but this early inspection does not replace your final walk-through on closing day. Plan to verify that requested repairs have been made as soon as the seller notifies you they are complete. Don't put off this inspection, because if problems still exist you'll need time to get them corrected before closing. If possible, the home inspector who discovered that repairs were necessary should accompany you to verify that repairs have been made.
Never hesitate to ask questions. Ask as many questions as necessary to help you understand the entire home buying process. You are making a long-term commitment and spending a major amount of money -- you'll feel much better about the transaction if you stay informed and understand what's happening every step along the way.
Best of luck to you!
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