While it can be a long process, buying a home should be relatively painless. It’s definitely not for the faint of heart and can be fraught with peril if not navigated correctly.
The first step is to select a highly qualified REALTOR to assist you in the process. Feel free to interview multiple REALTORS for the job, because that’s exactly what it is, a job. You’re going to employ that agent to work for you and look out for your best interests along the way. That agent should have years of experience in the area that you want to live. Also that agent should have more than time under their belt, not just years but number of transactions as well. An agent can be in business part time for many years but have only sold a handful of houses. Ask for references too.
The next step is to get a pre-approval. Make sure you bring along your entire financial life when you meet with a lender. The agent you hired should be able to guide you to one or more trustworthy lenders. The more information you provide that lender with upfront the less you’ll have to provide later when it really counts. Bring two months of pay stubs, two months of bank statements, retirement account statements, and anything else that might be of help.
Now the fun part, find a house! Try to avoid looking at a ton of houses all at once. You’ll start to forget what you saw and the houses will run together. Things will get confusing and you’ll end up getting frustrated. I like to have my buyers pick their top 3 homes and whenever a new one comes along they like better one of the first 3 gets eliminated for the next.
Once you’ve picked the one house that you love it’s time to write an offer. Your agent should guide you through this and explain list to sale ratios and pull some comparable sold properties as well. If you’ve looked at more than 5 houses in that price range you should have a pretty good idea if it’s priced right. The agent will transmit that offer to the listing agent and negotiations will ensue. Don’t get too wrapped up in it and have patience. Listen to your agent’s advice on pricing and strategy; they do this for a living.
Once the contracts are signed it’s time for a home inspection and formal mortgage application. Your agent should be able to help you select a reputable home inspector as well. Don’t just pick out of the phone book and DO NOT go solely based on price. The cheaper guys are usually cheap for a reason.
Once inspection issues are negotiated a way it’s pretty much just time to wait for the closing. Don’t be alarmed if the bank asks for things you’ve already given them. It’s a short term inconvenience for long term gain. Just grin and bear it.
Congratulations! You just bought a house!
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