Home Buying can be a daunting task, especially if you’ve never gone through the process before. There are so many things associated with home buying that it can cause you to become quite anxious. But if you follow these steps, you’ll have a more enjoyable experience on your journey to home ownership!

Step 1:

Get as educated as you can early in the process. Read articles and blogs about home ownership and get yourself familiar with as much as you can. Also, if you don’t already have a realtor in mind, follow a couple of them on social media and see what they are posting about in terms of home ownership. Simply go to Facebook and type in “Realtor” followed by “in [your town.] For example, I might type in Realtor in Nashua, NH. A list of realtors in my area will appear. I wouldn’t reach out just yet. This is more to get a feel for their posts and hopefully gain some valuable insight. 

Step 2:

Once you think you are ready to start the process, get pre-approved. In today’s market especially, you need to be well prepared to buy a home and that includes getting pre-approved and having your finances in order. To have your finances in order, you’ll ideally want to have little to no debt, an emergency fund, and then a down payment typically anywhere from 3.5%-20% of the purchase price. The more you put down, the less your monthly payment will be. As for a pre-approval, Triangle Credit Union offers tailored programs to meet your needs so definitely reach out to us if you are within our area. We’d love to help you!

Step 3:

Find the right realtor for you. I am sure you know someone who has purchased a home before. Ask them who they worked with and how their experience was. They will give you a firsthand account of the process and will be happy to recommend their agent to you. If you can’t get someone to recommend a realtor, go back to Facebook and check out the ones that you followed back on step 1 and consider reaching out to two or three. Interview them and see if one of them meets your needs! Ask ALL the questions you have! Remember, they work for you!

Step 4: 

Go to open houses and make an offer on the house you are interested in buying. Over the last year, the housing market has been crazy. Houses get put up for sale on Monday and within a few hours, private showings are scheduled, and offers are being made above asking price! If you love it, make a strong offer, and cross your fingers BUT if your offer isn’t accepted, keep searching. Go into this step with the mindset that in today’s market, anything can happen and that includes not getting your offer accepted. Try not to dwell and just keep searching. Your home is out there.

Step 5: 

Once your offer is accepted, it’s time for the Home Inspection. A home inspection of the property is a thorough walk-through by a licensed professional to check for signs of structural damage or things that may need fixing. Your real estate agent will usually help you arrange to have this done within a few days of your offer being accepted by the seller. This process protects you by giving you a chance to renegotiate your offer or withdraw it without penalty if the inspection reveals significant material damage. Both you and the seller will receive a report on the home inspector’s findings. 

Step 6: 

Have the Home Appraised

Your lender will arrange for an appraiser to provide an independent estimate of the value of the house you are buying. The appraisal will let all the parties involved know that you are paying a fair price for the home. And finally…. 

Step 7:
Congratulations! It’s time to close on your home purchase. At closing, you will sign all the paperwork required to complete the purchase, including your loan documents. Once this happens, the loan is finalized and a check is delivered to the seller, and you’re done… you are ready to move into your new home!

While there are plenty of other things to know and consider, this is a macro level idea of how the process works. The most important thing is to do your research like I mentioned in Step 1 and get yourself a realtor that will walk with you in this process. While it seems like home buying ends at the closing, it really is just the beginning. Your new home is ready to be filled with lots of memories for years to come! 

If you’re new to the homebuying process, watch Triangle’s First Time Homebuying Webinar featuring guest speakers who present on what you can expect during each step of the mortgage process.