One of the greatest accomplishments in life is the purchase of your first home. The home-buying process is very exciting, but it can also be quite daunting if you are unaware of the necessary steps. In this post, I will cover, step by step, the basics from beginning to end.
1. Meet With a Lender - There are many lenders out there available to help, choose someone you’re comfortable with. Whether it is your local bank, someone a family member or friend suggested, or someone you come across by doing your research.
- Financing Options Available – your lender will be able to tell you the best option for you after reviewing your finances. In most instances for first-time home buyers, the best option is to go with a USDA loan. A USDA loan is only available for first-time home buyers, however, there are guidelines and requirements you must meet. The greatest thing about USDA loans is they provide 100% financing. Between being able to get your loan 100% covered and having the right real estate agent to negotiate to get closing costs covered, in many instances, I have helped first-time home buyers into their homes with no money down.
- USDA loans are not the only option and even though it provides 100% financing, it is not always the best choice. By meeting with a lender you can find out what choice is best for you.
2. Find a Real Estate Agent to Work With – the same goes with finding a lender, work with someone you trust and feel confident working with. Whomever you choose to work with will be with you every step of the way. Your agent does not have to be the agent that has the home listed. Any Real Estate Agent licensed in the state of Missouri can show any and all listings within this state.
3. Viewing Homes – possibly the most exciting time! Once you find an agent to work with they will begin searching for homes in your price range. Once you find the home you’ve been dreaming of, it’s time to make an offer.
4. After An Accepted Offer – once your real estate agent helps you to get an accepted offer there are a few more steps to follow.
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Inspections will be done. Your real estate agent (most likely) will be the one to schedule inspections for you. You can choose any certified inspector. Inspections are not always required, but something I always suggest.
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Appraisal will be done. Your bank or lending institution you decide to work with will schedule an appraisal of the home. This is done to be sure that the property is worth the value you are paying for it.
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Inspections and appraisal listed above are the two main contingencies that must be met in order for the property to close. There are in some cases other contingencies, however, your real estate agent will be able to cover that with you.
5. Closing – the step where the home officially becomes yours. Closing takes place at the title company of your choosing. After an accepted offer it typically takes between 30-45 days to close, closer to 45 days for first-time home buyers.
I hope this gives you a better understanding of the home-buying process. The most important thing you can do is to find a real estate agent and lender that you feel comfortable and confident working with.
