Becoming a homeowner can seem overwhelming. Mortgage applications, counteroffers, loan docs, inspections, appraisals…where do you even start?
Let’s demystify the process of becoming a homeowner and break it down into five manageable steps.
And don’t worry, I’ll be there every step of the way to help you navigate the micro-steps and moving parts!
Step 1: Get Pre-Approved for a Loan
That’s right; before you start house-hunting, you need to get pre-approved for a loan. Here’s why:
- Getting pre-approved will confirm which price range you should be looking in.
- When you’re ready to make an offer, being pre-approved makes your offer much more appealing to sellers because they know you’ll be able to get a loan to close the deal.
To get pre-approved, you just need to complete an application with the lender of your choice, provide financial account statements and pay stubs for the last two months, and authorize a credit check. Your lender will review this information to determine how much they are willing to lend.
If you need a little help choosing a lender, contact me! I’m here to make this process easier for you.
Step 2: Start Your Search
Now the fun part: your home search!
Most buyers like to start the search online to get a quick overview of the market and to get some clarity on their needs vs wants.
It’s wise to choose a Realtor® to represent you early in the process for a few reasons:
- Realtors know the market, so they can give you personalized professional guidance.
- Established Realtors with extensive networks often learn about listings before they ever hit the market, which gives you a head-start.
- It doesn’t cost you anything! Sellers pay Realtor fees, so there’s no risk for you.
Step 3: Make an Offer
When you find a home you love, it’s time to make an offer!
Having a knowledgeable Realtor in your corner is invaluable from here forward. With our insider market knowledge, we can help you decide how much to offer, and we can negotiate on your behalf to get you the best possible terms.
You’ll need to put up a relatively small amount of money, called the Earnest Money Deposit, when you make an offer. The amount varies (typically from 1-3% of the offer price). This money shows you’re serious about buying the home. As long as the deal goes forward as expected, this money will go toward your down payment.
Step 4: Get Through Escrow
Escrow is the administration period between getting your offer accepted and closing the deal. Lots of tasks are completed over these 30-60 days:
- Home inspection
- Securing financing
- Home appraisal
- Confirming that the seller has the right to sell
- So. Much. Paperwork.
This period is often a little stressful for buyers who are anxious to finish the process and get their keys. But I have a complete network of escrow officers, title reps, inspectors, and appraisers to make your escrow period as smooth as possible.
Step 5: Get Your Keys and Start Moving
That’s it! On closing day, you’ll get your keys and officially be a homeowner!
If you’re interested in becoming a homeowner, please contact me. I would be honored to help you find your dream home!
