Steps to Buying a Home
1. SAVE YOUR DOWN PAYMENT
No, you do not need 20% down to purchase. There are many low down payment loans, but you will need funds for closing costs and prepaids such as appraisals and inspections.
2. CHECK YOUR CREDIT
Your credit score dictates your loan terms. If you need help repairing or improving your credit, talk to a nonprofit consumer credit agency or your lender.
3. TAKE A HOMEBUYER EDUCATION COURSE
This is the key to becoming an informed buyer, and possibly accessing down payment and closing cost assistance.
4. USE A REALTOR®
Ask friends, family, or coworkers for a referral to a REALTOR®. Plan on interviewing several. You’ll want to feel comfortable with the person guiding you through one of the most important purchases you’ll ever make. Know that each real estate brokerage individually sets their own commission rates that they choose to charge their clients. The rate of real estate commissions is not fixed by law or established by any membership organization with which a broker is affiliated. Commission rates are negotiable between the buyer and the agent’s broker and should be considered when choosing a REALTOR®.
5. GET PRE-APPROVED FOR A MORTGAGE
This step ensures that you are in the best possible position to make an offer on a home once you find one. Your REALTOR® will have several mortgage lenders in their network of real estate professionals.
6. GO SHOPPING
Think about your list of needs and wants and narrow down the areas you’re interested in. Your REALTOR® can help you find opportunities not listed on home search sites, while avoiding out-of date listings that might show up as “available” online but are no longer on the market. Is the offer of compensation to your agent at the top of your search priority list? If so, your search may narrow depending on what sellers are willing to negotiate for the sale of their home.
7. MAKE AN OFFER
Your REALTOR® will help you determine the best offer price for the home, walk you through the purchase contract, and provide expert guidance about the negotiation process. Once the offer is accepted, your lender will require a home appraisal to ensure the property is worth the price you’ve agreed to pay for it.
8. GET AN INSPECTION
Don’t be tempted to skip this step. You want to make sure there are no hidden problems with the home. A general home inspection is most common, but you may want or need supplemental inspections such as radon, fireplace, well and septic, chimney, termite, mold, or structural.
9. CLOSE THE SALE
Once your inspections are satisfactorily completed and your loan is approved, you will schedule closing with a title company. This is the day when you sign the paperwork to complete the purchase and get your keys.
10. MOVE IN!
Congratulations on your new home!
Download our Home Buyer Checklist and view our full guide before embarking on your homeownership journey:
Download the Home Buyer Checklist
Contents:
- Financial Readiness
- Use a REALTOR
- Homebuyer Education
- 10 Steps to Home Buying