So, you have reached the decision to tackle home ownership and tackle it you shall! Here is a step by step guide of how to go about beginning the process of owning your first home.
- Check your bank account – If you do not have the money to purchase a home in cash, you will need to get a mortgage.
- Decide what you are comfortable paying for your monthly mortgage payment.
- You will need roughly 3.5% down-payment and roughly 2% of the purchase price for closing costs. (example, $200,000 home, you would need about $11,000 cash to close). Now, you can ask the Seller’s to pay for some or all of closing costs. Although in a tough market where multiple offers are common, this does not increase your chances of winning in that situation. I will walk you through different scenarios and help you decide the best course of action.
- So you have the cash to close, how is your credit score? Typically lenders want to see 640+ and the higher your score, the better your interest rate will be.
- Time to call a lender. If you do not know a mortgage lender, ask your Realtor for a few recommendations, or check out our resources page HERE.
- Remember the number you decided you were comfortable paying monthly? Discuss that with your lender and ask them what price range you should be looking in to hit that monthly payment.
- Now lets see some houses! Contact us to discuss your budget and must have’s list. We will email you homes that meet your criteria from our Mibor database. You can also search on Zillow/Trulia/Realtor and send me any addresses you are interested in.
- I will arrange showings and prepare a market analysis on the homes that you decide to pursue further.
- Once we find your home, I will walk you through the Purchase Agreement. There are many things that go into a Purchase Agreement other than just the price – but never fear, your Realtor is here! I will answer your questions and explain all the legal text so you feel confident and fully informed.
- After tenaciously negotiating to get you your dream home, you will be under contract! Hooray!
Once your Purchase Agreement is accepted/under contract, we will walk you through the next steps.
Read about what to expect after acceptance in the next blog, Accepted Offer to Closing Table.