Congratulations! You’re ready to buy a house! Whether you’re looking for a cozy starter home or your dream property, the process of buying a home can be both exciting and overwhelming. But don’t worry — we've got your back. Here's a simplified step-by-step guide to help you understand how to buy a home.
1) Get Pre-Approved
Before you start browsing listings, you need to understand how much house you can afford. Meet with a few mortgage lenders — aim for at least three: one from a bank, one from a credit union, and one from a mortgage institute. Getting pre-approved will give you a clear picture of your budget and show sellers you’re serious. (Don’t forget to check out Home Loans 101 for more info!)
2) Find an Agent
While some debate whether you need an agent when selling a house, when it comes to buying, the answer is a resounding yes. A buyer's agent will help you navigate the process and ensure you don’t miss any important steps. And the best part? Their services are typically free for buyers! Plus, with TheAssetGrowth’s Cashifyd program, you get cash back on your closing costs. Win-win!
3) Find Contender Properties
Your agent will set you up with a custom property list based on your criteria: location, size, budget, etc. You may also want to keep an eye out for For Sale by Owner (FSBO) properties, as they may not appear in your agent’s listings. When you spot a property you like, let your agent know so they can arrange a showing.
4) Visit Properties & Fall in Love
Take your time looking at houses! Whether it’s the first one you see or the 10th, don’t rush your decision. Small details like paint colors or landscaping are easy fixes, but things like location, layout, and structural integrity matter a lot more. Don’t settle — you’ll know when you find the right place!
5) Make Your Offer
Once you find “the one,” it’s time to make an offer. Depending on the market, you could be the only offer or one of many. Your agent will help you craft a competitive offer and negotiate any terms that are important to you, such as inspections or contingencies. It’s time to get serious!
6) Offer is Accepted
Congrats! If the seller accepts your offer, you’re officially under contract! Of course, the seller might reject it or counter with a different price. But if all goes well, you're one step closer to owning your new home!
7) Get Your Checkbook Ready
Once the offer is accepted, you’ll need to submit earnest money — this is like a down payment that shows you're serious about the purchase. If the deal falls through because of contingencies, you’ll get it back. But if you back out without a valid reason, you could lose it. Get your finances in order and make the payment quickly.
8) Get on the Phone
Now, you’ve got some homework. You’ll need to contact your insurance agent to get homeowners insurance (which is required for your loan). Plus, schedule any necessary inspections — home, well, septic, radon, etc. The sooner these are done, the better. Don’t forget to notify your lender that you’ve found a home and have an accepted offer!
9) Have the Lender Schedule Appraisal
Once your inspections are clear, your lender will schedule an appraisal. The appraiser will assess the value of the home to make sure it aligns with the loan amount. If everything checks out, you’re nearly there!
10) Money, Money, Money
With the appraisal complete, your lender will finalize your loan commitment. They’ll give you a final breakdown of what you need to bring to closing, including additional costs like taxes, title fees, and other closing costs. Be prepared for more expenses than just the sale price of the home.
11) Final Walkthrough
Before closing, you’ll get one last chance to walk through the property. This is your time to make sure everything is in the same condition as when you first saw it. If anything major has changed or is broken, now’s the time to address it — but minor issues shouldn’t cause you to back out of the deal.
12) Closing Time
It’s the big day! On closing day, you’ll meet with your agent, lender, and a representative from the title company. You’ll sign a lot of paperwork, pay your closing costs, and get the keys to your new home. Congratulations — you’re officially a homeowner!
Ready to take the plunge? If you’re still feeling uncertain or need assistance, check out some amazing properties on TheAssetGrowth or reach out to an experienced agent to guide you through the process. Happy house hunting!