There are a lot of steps when it comes to the home buying process, but where do you even start? I want to share with you the first steps I recommend to get you started on a successful search to finding your dream home. I believe that knowing this will allow you to anticipate what is to come, therefore realistically set your expectations, which results in a less stressful, more enjoyable, home buying process.
1. Get pre-approved
Getting a pre-approval from your bank or a mortgage lender is the absolute first step before doing anything else. Reason being, it provides you with financial guidelines to work within, so you’re not searching for homes beyond your price range. Also, it affirms that you’re able to get a loan. Know the difference between pre-approved and pre-qualified by watching this quick video here.
2. Creating your love list
I’ve pulled together a detailed video on how to do this along with a free printable (see above), as it is such an important thing to get you started. Especially if you’re purchasing the home with another individual, it ensures you’re both on the same page, and allows you to prioritize your wants vs. needs. It is unlikely that you will find a home available, within your price range that meets every single need and want you’re looking for, so mapping out the most important to the not necessary will make the decision making process that much easier as you search.
3. Offers on offers
Here is where you’ll want to rely heavily on your real estate agent for their negotiation skills. The price of a home is generally based on recent sales of similar homes located in the same area, however, the strength of the market, interest rates, inventory, and other variables can contribute to the bottom line. To ensure you get a good deal that the seller will accept, a lot of these factors must be considered. Before placing an offer, your agent will likely speak with the listing side to ensure your offer will be considered, so you’re not putting in the effort without seeing a result.
4. Offer gets accepted
After the offer gets accepted, there are a series of things that should be done within the first week. Watch here, to see the top four things that are the most immediate after the offer has been accepted.
5. Let escrow begin
The day an offer is accepted, it enters into a period called escrow. This is where all the important steps take place within a transaction, and it is managed through a third party called escrow. For more information on what escrow is, watch my video here.