How to Buy a First-Time Home
It's all so exciting, yet amazingly nerve-wracking. The thought of buying your first home will cause you to second-guess yourself. "Can I really afford to buy this house?" "Will this save me money as compared to renting?" "What if something goes wrong with the house after paperwork is signed?" All of these questions and countless others will cross your mind during the home-buying process. If you take certain protective measures before closing the deal on your first home, you can avoid a lot of the unnecessary headaches that some home buyers experience on the first time around.
Other People Are Reading
Instructions
-
-
1
Sign up for a first-time home buyer's program in your town or city. Many municipalities offer home-buying classes and counseling to help first-time home buyers through the process. New home buyers are encouraged to save toward the home purchase and learn about the financing and closing procedures.
-
2
Get preapproved for a mortgage loan through a reputable, well-known lender, preferably a nationally recognized bank. This preapproval will tell real estate agents how much home you can afford. It is your ticket to home ownership. Ask your mortgage lender if you are eligible for seller's assist, a program where the seller contributes up to 6 percent of the sales price toward closing costs. This information must also be communicated to your real estate agent.
-
3
Find one or more homes that you are interested in. You can find homes for sale in your area by going to Realtor.com and putting your own list together or by meeting with your real estate agent to discuss the type of home you want (including the number of bedrooms, square footage and location, such as in a particular school district). The Realtor will come back with a listing of homes to see.
-
4
Place an offer on the house through your agent. Because you are new to the home-buying process, allow your Realtor to guide you regarding the initial offer. Don't be afraid to place a bid for the house lower than the asking price. If the offer is accepted, your agent will draw up a sales agreement and you will need to put earnest money down on the contract. Have your Realtor puts a contingency on the sales agreement for you to get a home inspection done.
-
5
Get a full home inspection of the property. The home inspection should include an examination of the structure of the house, fixtures, appliances, plumbing, electrical wiring, doors, windows and other important elements of the home. Also, get a termite and mold inspection and radon test to assure that you won't have any unexpected problems. Express any concerns with your real estate agent and adjust your bid as needed. After you and the seller come to an agreement of terms, set a closing date.
-
6
Buy a home warranty to go with the house sale. This is a small and inexpensive item to buy with your new home, but it goes a long way in helping to give a first-time home buyer peace of mind. The home warranty covers any appliances, including the heating system, stoves and refrigerators that break down after the home purchase is complete. Most home warranties are good for up to a year, can be renewed and are sometimes offered for free by the real estate agent as a perk.
-
7
Go to closing with your real estate agent, lender, title agent, the seller and any down payment money that is still due. Be prepared to sign a lot of paperwork. Checks and keys will be exchanged at the closing table, and the house is now yours.
-
1
