10 Steps to Buying a Home
Buying a house can be the most complicated financial process of your entire life. I find that most
clients go through a range of emotions. Here are 10 straightforward steps:
1. Are you ready to become a homeowner?
Buying a house is a financial and emotional decision that requires the experience and support of
a team of reliable professionals. You will need to have proof of financial stability, i.e. pay stubs,
tax returns and bank accounts in your name. It's also a good idea to know your credit score. I
have used https://www.freecreditreport.com/ in the past, but many banks now give this
information to their clients as well.
There are forms, financing, inspections, marketing, pricing, and negotiating, it makes sense to
work with me. I know the community and much more. I also have 5 star rating every category:
Competency, Market Knowledge, Communication and My Experience.
3. Get a mortgage pre-approval
Unless you are a cash buyer, you will need to get pre-approval so we can make sure to stay
within your budget and keep this process on track. Speak with a couple of Mortgage Bankers
and check rates and loan types that will be best for you. Ask me for a list if you need some
suggestions. Make sure you understand the cost of financing your home purchase is usually
greater than the price of the home itself (after interest, closing costs, and taxes are added). The
lender that you have chosen will work with us to answer any questions you might have.
This is where you get to list your wants and needs for your home purchase. We will first look
online to narrow our search down. Then we will look at the homes in groups of
around 4-5 at a time.
5. Choose a home
Finding the right home takes careful consideration. You should think about long term as well as
re-sell value when buying a home. A home is an investment as well as a place to live.
6. Make an offer
While much attention is paid to the asking price of a home, a proposal to buy includes both the
price and terms. In some cases, terms can represent thousands of dollars in additional value—
or additional costs—for buyers. I will explain all the cost associated with the additional terms on
each contract for you.
7. Get a home inspection
Making sure you understand what you are buying is essential in this process. An inspection is
important for two major reasons. First, to make sure there are no major issues that need to be
taken care of before closing on your home. Second, for a new home owner checklist of items
you might need to plan for in the next couple of years. Ask me for a list of inspectors if you don't
already know one.
8. Get insurance
Especially, if you are including this in your monthly mortgage payment this can make a
difference on the affordability. When comparing companies make sure you do an apples to
apples comparison, checking coverage limits and deductibles.
Before you show up to your scheduled closing, I will help you coordinate with the title company
to determine the closing costs and how to make it payable. You will also need to bring a drivers
license or other photo ID. You will not receive your keys until the transaction is funded and the
seller has received their settlement.
10. Filing Tax Exemption
You've done it! You've looked at properties, made an offer, obtained financing, and gone to
closing. The home is yours. Make sure you get the tax credits you deserve. I will send you a
packet in December to file for any exemptions you might qualify for, but it's up to your to get it
sent in. It will make a difference in the affordability of your new home!