How to Buy a Home in 8 Steps

In this post, How to Buy a Home in 8 Steps we will give you a simple overview of the home buying process. The home buying process can be intimidating while at the same time exciting and educational. Just getting over the fear for some is the first step. We have discovered the more knowledgeable a home buyer is, the easier buying a home is for them.

There is a specific process to buying a home and it is pretty simple actually and when following these 8 steps.
 

The Steps to Buying a Home

 

1. Decide to buy!
2. Hire your Real estate agent
3. Secure financing
4. Find your home
5. Make an offer
6. Perform inspections
7. Close the sale
8. Protect Your Investment

Pretty simple right? Let us take a look!
 

 

Step 1: Deciding to Buy!

 
If you are renting and have a stable job with some savings, and a credit score in the high 600 range, you can likely qualify for FHA or conventional financing at today’s low rates.


 

Step 2: Hire Your Real Estate Agent…

Having someone on your side when comes to buying a home is the most important part of the process. Great agents like us act as fiduciaries and put our client’s needs and interests first! And the best part…our services to you are FREE!

How a Real Estate Agent Can Help You
 

1. Educate you about your market
2. We focus on your wants and needs
3. Guide you to homes that fit your criteria and meet your needs
4. Coordinate the work of other professionals like Home Inspectors, Attorney’s, and others
5. Help you negotiate the best possible price and terms
6. Check and double check the paperwork and deadlines
7. Assist in solving any problems that may arise

 
 

Step 3: Secure Financing

It is normal for most people not to automatically know how much of a mortgage they can qualify for. It is highly recommended you find a preferred lender as soon as possible. Not only will the lender help you determine how much you qualify for, but they can also make helpful financial recommendations. You need to know your options. Your lender can suggest a variety of different mortgage programs to fit your unique situation best. You may discover a strategy you were not aware of.
Proper mortgage planning is the key to an efficient and smooth experience.  A mortgage loan specialist will tell you what you can afford, but you decide and tell us what your comfortable spending.
 

Here are 6 Steps to Financing Your New Home
 

1. Choose a Lender
2. Make a loan application and get pre-approved
3. Determine what you want to pay and select a loan option
4. Submit to the lender an accepted purchase contract
5. Get an appraisal and clear title
6. Obtain funding and close

If it sounds challenging, it is not. Your real estate agent will assist you.

Also…your real estate agent has worked with mortgage professionals in the area and will be happy to introduce for you to decide. Using a lender that has a relationship with your agent adds another layer of accountability that can be helpful to the process.


 

Step 4:  Find Your Home

Once you have completed the pre-approval process, you will then be ready to begin your search.
At this point the most beneficial thing that can be done is sit down with your real estate agent and have a brief home buyer consultation. During this meeting you will accurately pinpoint what you are looking for in a home and area. Since this is likely the biggest purchase you have made, you want to take your time and really focus on what you want and need.


Questions to discuss:
 

• Where do I want to live?
• How much space do I need?
• Which is more important: location or size?
• New home (inventory home or to be-built), fixer upper or turnkey?
• Is future appreciation important?
• Is neighborhood stability important?
• Would a condo/townhome be an option?
• What features and amenities do I want or need?
• HOA or No HOA?

Hopefully by now you have been looking at homes online however, we can never stress enough the importance of seeing homes in person.


When you visit homes for sale in person, not only will you see the homes:
 

• You will see where they are located
• How the neighbors take care of their homes
• What the neighborhood is like
• What is nearby and more

You will never get the “real feel” for an area until you visit the homes and neighborhoods. There are a few downsides to just viewing homes online. What you will discover is listing agents can be very clever at not showing you the things you should and need to see online.  And…photographers can use creative photography to make the homes and yards look bigger and better online than in person.


 

Step 5:  Make Your Offer

There are 3 basic components to any offer.
 

1. Price – What you are willing to pay based on the market and your financial qualifications.
2. Terms – Include financial, inspections, condition, and timing concerns.
3. Contingencies – Condition related and financial. Anything that might need to be resolved prior to closing.

How your real estate agent can help!

Once you find a home you want to buy…your real estate agent should analyze and share the other comparable sales in the area with you so you can determine together what the homes current fair value is.

Additionally, we will contact the builder’s agent or listing agent to discover more information about the property. Knowing what is important to both sides of the negotiations will help construct a better offer for you.

Also, if need be, other resources can be explored for more information. i.e.: tax records, the local planning office, public utilities, school data, HOA details and more. Whatever is important for you to know prior to making an offer, your real estate agent will make every attempt to find the resources needed for you.

You should be comfortable and confident in your choice of home before making an offer.


 

Step 6:  Home Inspection

Just because you love a particular property, it does not mean that it is perfect! Chances are it is not! In fact, no house is exactly perfect. This is where reason will have to prevail over emotion.

 

Our team always recommends you have a home inspection, you attend, to learn about your property. This way you will see firsthand the property’s true condition before you close. In a case of a new home read the home warranty carefully and understand what it does and does not cover.  For a resale home you need to decide if you want to purchase a home warranty.

For your protection, in South Carolina every home seller is required by law to provide you with a Sellers Property Condition Disclosure. On this document the seller is required to disclose any and all know defects in the property.

In an inspection what you are looking for are the major things.

With a new home most issues are covered in the builder’s home warranty however with any home especially resale you need to consider – are there any structural issues, does the heating and cooling work, are there roof leaks, do the plumbing and electrical systems work, is their moisture damage and more. Cosmetic issues should be handled in the offer. Like cleaning and painting etc. The home inspection is for the big-ticket items.

In South Carolina we have 2 approaches in the contract to handle inspection contingencies.
 

1. The Repair Procedure
2. Due Diligence

Both have many details, and your real estate agent will be happy to review them with you anytime.



 

Step 7: Getting Ready to Close

Now that all terms have been agreed to by all parties and all contingencies are removed, your contract is considered ratified. You are now in the “home” stretch; pun intended.

But you need to be aware that you have a few pre-closing responsibilities, and these include staying in control of your credit and finances, first and foremost.

   

• Do not buy anything on credit until you close! No new cars, no furniture…nothing!
• Do not create any new leases! Cars, furniture, appliances…nothing!
• Other than your normal paycheck all bank deposits will be questioned.
• Continue paying your bills on time and notify your lender if anything changes.
• People often accidentally disqualify themselves without even knowing it!

 

You will also need to keep in touch with your agent and lender and return all phone calls and paperwork promptly. Any communication delays could potentially delay your move-in date!

You might need to communicate with your agent at least once or twice a week and verify with your lender all mortgage funding steps are completed.

If possible, conduct a final walk-through of the home with your agent as well.

And finally, be sure to confirm with your agent, home insurance professional, and lender you have the certified funds, and evidence of insurance lined up prior to closing.

 

Step 8: Protect This House!

 

Home Sweet Home!

Once you have closed and moved in, you will need to protect your investment for years to come. You can do so by performing routine maintenance on your home’s systems, depending on their age and condition. 

A good rule of thumb is to watch for signs of leaks, damage, and wear. If you fix small problems early, you will save yourself from having to spend big money later. 

And remember that kind real estate professional who assisted you throughout the process? Well, after closing your agent can still help you with such things as providing information for your tax returns, finding contractors and repair services, and even tracking your home’s current market value.


This helpful and informative post outlining How to Buy a Home in 8 Steps has been provided to CharlestonNewHomesGuide.com by Bill Byrd of Keller Williams – Byrd Property Group located in Charleston SC.  As a real estate professional for 35+ years, Bill has refined this process.  What you will discover is that it is simple, it works, it is not stressful and can be a whole lot of fun. Images and article content though slightly edited originally posted on Byrd Property Group’s blog.  More About Bill

 

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