1. Find a realtor like me to help you through the process.
Buying a home is one of the biggest expenses someone will make in their life. You’re going to want someone with experience to be in your corner when the time comes. Sure, you can at it alone, but the process most likely won’t be as smooth. To find a realtor, you can do a simple google search for realtors near you, go to an open house this weekend, or just step outside (we’re everywhere!) lol.
2. Get pre-approved for a mortgage by A Lender.
A pre-approval is not a pre-qualification, the difference between these two is that a pre-approval is a more in-depth process where a lender verifies your income, credit, and assets to determine your actual loan eligibility. Whereas a pre-qualification is a just a quick estimate of how much you might be able to borrow based on self-reported financial information. A pre-approval from a lender carries more weight and is how sellers know that you’re a serious buyer.
- Important –You have the choice to go with any lender you’d like, it could be one suggested by your realtor, your bank, or any lending company you find.
3. Sign a Buyer Broker agreement with your realtor.
Since the NAR settlement of 2024, we as realtors are not allowed to do any Real estate services for buyers without a signed agreement to work together. This type of agreement has been around for some time, but is now required before we can do any work (such as: showing a home, looking for homes on the MLS for clients, submitting an offer, etc.) This agreement basically says that you and the realtor will work together in the process of buying your home and the realtor will be compensated for their services by the buyer if the seller or seller’s agent doesn’t compensate the buyer’s agent in the sale of that property.
4. Shop for your new home.
Once you get your approval letter, you will know your purchasing power. At this point you and your realtor will get together and narrow down the homes that fit your wants, goals, needs, and dreams. The showing process begins and eventually you find your new home. Getting a preapproval is going to make this step a breeze for all parties involved. This helps you avoid falling in love with a home that is either way above or below the approval amount from the lender.
5. Submitting an offer for your new home.
Great! You’ve found the one, after days, weeks, sometimes even months of showings and searching. Now it’s time to put in an offer on the home. Upon the offer being accepted, the buyer will have 3 business days to submit their Earnest Money Deposit (EMD) to the title company (If 3rd day falls on a holiday or weekend it defaults to the following business day). The EMD amount will differ with each transaction but is around 1% of the sale price.
6. Getting a home inspection.
After your offer is accepted, a home inspection will need to be ordered. The inspection may include all of the following depending on what fits your property and where you live: Wind mitigation and 4-point (for insurance company purposes), a termite inspection if VA LOAN but recommended here in Florida, a pool inspection, a septic inspection and a standard home inspection. All home inspections are paid at the time of service.
7. Negotiate Repairs
When the inspection is completed, the buyer and buyer’s agent will receive the inspection report. At this time, negotiating for repairs on the property can begin. Your realtor can negotiate on your behalf in creative ways and may include furniture or appliances conveying with the home, rate buy downs, and repairs or replacements in the home, etc.
8. ordering the Appraisal
Once the inspections are complete and repairs have been negotiated, the lender can order the appraisal. The appraisal is an assessment completed by a licensed appraiser that lets you know what the value of the home is. During this time the title company is completing title searches and ordering a survey of the property.
9. final walk through
At least 24 hours before closing, a final walk through of the home will be completed by you and your realtor. This is to ensure that any and all repairs that were negotiated are complete, and to make sure the home is in good condition.
10. closing day
You and your realtor, the seller and listing agent will meet at the closing table to sign paperwork and tie up any loose ends with purchasing your home. The keys will be exchanged, and you can start moving in! YAY!!!
All in all, buying your first home is a big deal and an exciting one. We as realtors care about our clients and we want to do our best to make it as seamless as possible for them. So, if you’re in the market for a new home or have a real estate need, feel free to reach out to me and I’ll be happy to help you start your journey or point you in the right direction to a realtor near you. In the meantime, if you’ve already purchased your home and want to share how the process was for you or you’re looking to buy and have some questions or concerns, feel free to share them in the comments section. I’d love to read all about it!
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