5 Steps to Buy a Home

As a first time home buyer, buying a home can seem like an overwhelming journey. You may have questions like, how do I get started? Can I afford a home? What do I need to buy a house? What is the first step?

If you are curious and would like to know more, check out the steps below. I break down the first steps to buying a home and what you need to get started such as funds, minimum credit score and more.

Step #1 -  Find an agent

It may seem cliche to have this as the first step, but I promise having an agent before you get started will simplify the process and take away the stress of trying to do it all on your own.

Not all agents are created equal. Not only is it important to get an agent, it's important to have one that can breakdown the buying process and set you up for success. At Still Water Realty we do an initial consultation where we get to know you as the buyer, your wish lists and real estate goals. Then we provide a comprehensive buyer packet covering the buying process from beginning to end and everything in between. We also guide you throughout entire process and are happy to answer any question you may have.

Step #2 - Write down your expenses

The next step is to write out your expenses. Find out how much is going out per month and what you would be comfortable paying. The most important expenses a lender will look at are your debts. Write these down separately. Your debts will include things like a car loan, student loans, and credit card balances. These come up when the lender pulls your credit report and the monthly payments are counted towards your Debt-To-Income Ratio (DTI). This ratio is used to see how much income you make compared to how much you spend on debt and gives them an idea of how much you could afford monthly for a mortgage.

Step #3 - Meet with a lender

This is definitely one of the most important steps! If you need a loan to purchase the home it's crucial to talk to a lender before looking. The lender will go over your income, check your credit score and give you an estimated amount that you can afford. You want to make sure you are looking at homes in your budget and that you can obtain the loan. We have great lender partners and can point you in the right direction!

Step #4 - Start saving $$$

During the pre-approval process, the lender will explain how much you need out of pocket to buy the home. If you don't currently have the extra cash you can start saving up and will know exactly how much you need. Out of pocket costs association with buying a home include your down payment (typically 3.5% of the purchase price for first time home buyers), closing costs (2-3% of the purchase price due at closing) and earnest money (usually 1% of the purchase price due shortly after going under contract). Don't worry, if this seems like a lot, there are programs out there that can help with your down payment and closings costs. Your lender will give you options!

Step #5 - Take your wish list and starting looking at homes!

Once you have your funds saved and are pre-approved for the loan, you are ready to shop! We will have another meeting to go over your wish list, must-haves, and deal breakers. Once we know what you're looking for we'll schedule some homes and get going!

What happens after you find the home?

After you find your home, we'll put in an offer and if it is accepted by the seller you go under contract. Yay!

Then what happens next? Don't worry! Once you get to that point we'll go over what the next steps are and what it means to be under contract. We'll guide you all the way to closing and beyond!

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