Real Estate Blog

Six steps to buying a home

So, what are the steps to purchase a home? Today I’m going to guide you through the six basic steps. 

Step number one -Get Qualified. The first thing you need to determine in your home buying process is your budget . The best way to do this is by consulting an expert. Those online calculators don’t know everything. There is more to consider in a monthly payment than just the price of the home! Also, an online calculator can’t tell you all the ins and outs of a FHA loan vs. a conventional, or USDA loan. Some mortgage companies even have special programs for medical professionals that you may qualify for. A mortgage broker can sit down with you an analyze YOUR situation and determine what is best for YOU. And you might find that now is not your time—maybe you need to clean up your credit a bit first. A mortgage broker can guide you in that as well.  A mortgage broker will help you sit down analyze your current financial situation. They’re going to look at credit, they're going to look at income, they're going to look at debt to income ratio, they're going to look at cash on hand (how much money you've saved.) Your mortgage broker is a key player in this process, and you want to establish your relationship with him or her right off the bat. 

Step two- It's time to contact an agent! We’ll look at the market and determine what's available based on your budget. Then, we’ll work with your schedule and get you in those properties so that you can analyze them and see which one's the right fit for you. Now’s a good time to talk about a Buyer’s Agent. A Buyer’s Agent is someone working specifically for you and to satisfy your home buying needs. Typically, there is no charge to you as a buyer for this. The commission the Buyer’s Agent earns is paid by the seller of the property. 

Steph three- Let’s find your home! I really enjoy showing property-I dont know of an agent that doesn’t. This is when we get to open doors and take people into the homes and and just let them get excited about what they're seeing, and about the possibilities. This leads us to…

Step four- Negotiations. So, as Realtors we have access to tons of data that we can use to help you determine how to make an offer. We can look at local comps to determine the best price fit for a particular property. Also, we are experts at negotiations. What we always hope for is our offer to be immediately accepted. However, that’s not always the case. Sometimes, we will have to come to an agreement on price, concessions, and other things. Every offer is different, and we are here for you no matter what happens. 

Step five- Inspections and Appraisal. I’m not going to sugar coat it, this is the most challenging part of the process. In real estate, we say there are two parts to buying a home. There's everything that leads up to getting a contract and then there's from the contract to the closing. The second part, at least for us, is the most challenging. We will help you locate the local inspectors and get the property looked at thoroughly. Then we'll review that report with you and we'll talk about what the findings are. You can expect there to be a few things that you’ll want to ask the seller to fix-no house is perfect. This may require more negotiations, but again your Realtor is ready for this. After we get all this ironed out, we’ll  move forward to the appraisal part. This is where the lender will order a third party appraiser to come in and take a look at the property. From a value perspective the lender needs to make sure that you're paying fair market value for the property and not exceeding fair market value. Regardless of the complications that can come up in this particular step, remember you've got a real estate professional and a lender both on your side to help you through this.  Which leads us to… 

Step Six-The absolute best part of the entire process the closing! This is when you become a homeowner! The entire process-getting pre-approved, finding an agent, finding a home, negotiations, inspections has led to-we are at the finish line! The attorney  will sit down with you and go through all of the paperwork make sure everything's clear and paid. They’ll make sure the title is clear, the lender documents are signed properly, everything's notarized and make sure the property is recorded properly at the county courthouse. This closing typically takes place about 30 days after we get the property under contract. Now all that's done the best part …KEYS IN HAND! It's time to transfer property ownership you! We all get up, shake hands, and you walk out with a key to your new home!  

I know this process seems long and there's a lot of steps. This is why you want to call us and let us help you through all of these steps. We will make sure that we're there to answer all of your questions and ensure that you're protected throughout the process. We've got you covered.

If you have any questions about this or anything else in the real estate process just give me a call. I’m Alan Castleman with Hickman Realty Group, and I’m here to help you!

731.414.5862

731.664.1006