A COMPREHENSIVE GUIDE FOR FIRST-TIME HOME BUYERS

 Embarking on the journey of purchasing your first home is an exhilarating milestone in your life. To ensure you are fully prepared for this momentous occasion, it's essential to understand the process ahead. This comprehensive guide, expertly crafted by your agent, is tailored specifically for first-time buyers, aiming to alleviate the pressures associated with home buying and maximize the enjoyment of this exciting journey.

What does the NAR settlement mean to you?

STEP 1: CHOOSE A REAL ESTATE AGENT

Selecting Rich & Lisa Estrada for your real estate needs guarantees a partnership with seasoned professionals who bring a plethora of experience, always advocating for your best interests. Their unique blend of skills from healthcare and veterinary backgrounds ensures empathy, precision, and effective communication, aiming to find your ideal home. Committed to your dreams, they prioritize a seamless, stress-free process, focusing on building lasting relationships and ensuring every decision aligns with your goals.

STEP 2: GET PRE APROVED

Just because you think you can afford a certain payment every month doesn’t mean the mortgage company will agree. Just as they may approve you for too large of an amount, they may also approve you for a lesser amount or deny you a mortgage altogether. Lack of time at a job, insufficient credit, past bankruptcies, or other financial issues can cause major problems when trying to secure a mortgage. Before you get your heart set on a home, talk to a mortgage professional to find out what amount you can qualify for. This will also be an advantage when you make an offer on a home, as some sellers won’t entertain offers from those who aren’t already prequalified for a loan.

STEP 3: DECIDE ON YOUR BUDGET

Notice I said to decide on your budget—not determine how much the mortgage company will give you. In many cases, a mortgage company will pre-approve you for more than you’re comfortable spending, which is why you need to determine the monthly payment you feel comfortable with before talking to a lender. This likely includes doing a full household budget and taking into consideration what changes other than a mortgage payment will occur once you move into your new home. If you’ve lived in an apartment or with roommates, you may overlook new expenses like garbage, water, or HOA fees that could easily blow your budget.

STEP 4: RESEARCH

With a pre-approval, your search is immediately narrowed down to properties within your budget. This financial clarity allows you to concentrate on questions that truly matter: Do you prefer a condo, townhome, or single-family home? Which amenities are non-negotiable, and which can you live without? Having a budget in mind helps filter out unsuitable properties, making your search more efficient.

STEP 5: FIND THE RIGHT HOME

This step is likely to be the most enjoyable part of the whole journey (aside from the excitement of moving in!). we will coordinate visits to homes that catch your interest and fit within your budget. It's important to jot down your impressions, noting what appeals to you and what doesn't. Remember to focus on the details: flick light switches on and off, open and shut doors, and test the water flow in various rooms. Your evaluation shouldn't just cover the house itself. Allocate time to walk around the neighborhood. Observe the traffic patterns at different times, assess the parking availability, and gauge the proximity to essential services like schools and supermarkets.

STEP 6: MAKE AN OFFER

After choosing your ideal home, collaborate with your agent to create a reasonable offer, taking into account the market value of similar properties. Your proposal might be lower, match, or even exceed the listing price, depending on the home's asking price and the prevailing market conditions—whether it's more favorable to buyers or sellers. We will assist in negotiating any counteroffers to help you finalize an agreement. Once this is achieved, the home will enter escrow.

STEP 7: HAVE THE HOME INSPECTED

Typically, your offer will include a condition that allows for a home inspection to verify the absence of significant structural problems or the need for major repairs. We can facilitate organizing this inspection, which can be scheduled shortly after your offer is made. Should the inspection reveal no serious concerns, the process advances to the next stage. However, if significant issues are identified, it provides you an opportunity to renegotiate your offer considering the repairs required, or you may choose to retract your offer altogether.

STEP 8: SELECT YOUR LOAN

Now is the moment to return to the mortgage lender who gave you pre-approval or pre-qualification and select your mortgage. You'll be offered a range of choices tailored to your financial profile, including fixed-rate, adjustable-rate, 15-year, 30-year mortgages, or specific programs like VA loans or FHA loans. Collaborate with your lender to pick the mortgage option that best aligns with your comfort and financial goals.

STEP 9: GET A HOME APPRAISAL

Your lender will arrange for an appraisal of your new home to determine its independent market value. This step is crucial to ensure that the price agreed upon is fair for all parties involved in the transaction.

STEP 10: FINISH PAPERWORK

Handling the extensive paperwork required for purchasing a home may not be eagerly anticipated, but it's an essential step in the process. Thankfully, your lender and title company will take care of organizing all necessary documents. Once you've completed this step, you'll have the assurance of being the legal owner of your new home.

CONGRATULATIONS!

After signing the final paperwork to complete the purchase, you are now the owner of a new house. It may take a few days for your loan to be funded once the paperwork has been returned to the lender, but once that check is delivered to the seller, you’ll be all set to move into the home of your dreams.