Our Seven Step Home Buying Process

1.  Getting Your Finances in Order 

2.  Deciding What Neighborhood is Best for You 

3.  Get  Pre-approved 

4.   House Hunting 

5.  Make a strong offer 

6.  Prepare for inspections and appraisals 

7.  Do a final walkthrough and close

Step 1: Evaluate your financial situation

Credit Score: Your credit score is one factor that lenders use to make a decision on how much you will get approved for. They understand that past credit history doesn’t necessarily indicate how you will use your credit in the future. After all everyone makes mistakes, and it is no different when it comes to credit. While there are all types of loans you usually need a credit score of at least 620 for most conventional loans. If you think your credit score may be lower than that give us a call and our lenders will create a plan to improve your credit score and may even approve you with a lower score*.

Debt-to-income ratio: In most cases, you’ll need to spend less than 46% of your income on debt. This includes your future mortgage payment each month.

Down Payment: Down Payments vary depending on what type of loan you decide to go with. The following are *estimates and can vary. If you do an FHA loan usually 3.5% down is required. For a conventional loan usually 5-10% is required. There are also many down payment assistance options available. Other available loans as well.

Closing Costs: Closing costs usually range from 1-3% Closing costs are negotiated.  Our team is full of experts that will do all the negotiating for you. Closing costs are not part of your down payment. 

Step 2: Choose the right neighborhood

After step one we make sure you have a really good idea of how much you can afford. We help you choose the right neighborhood by evaluating many metrics. We look at sales prices in different neighborhoods and start narrowing down your options. 

We look at past home value trends. We estimate how much your home will appreciate based on historic sales data.

A few examples of what you want to consider when looking for a home are;

School Districts 

Restaurants

Amenities

Crime Rates 

Walkability

Transportation options 

Step 3: Getting pre-approved 

Getting preapproved is important because many sellers may not consider your offer unless you have a preapproval. This step also lets you know how much you can afford.

Step 4: Start house hunting

Looking at homes is one of the most fun parts of the whole process.

We will discuss your “Must Haves” and “Nice to Haves”

Remember that your first home may not necessarily be your forever home!

With your first home you may even start to build equity. 

You can always sell your home and upgrade if you choose to.

Step 5: Making offers 

Once you find a house you like, you can make an offer. 

Remember that making an offer doesn’t necessarily mean that it will get accepted.

Move fast – homes are selling quickly. 

Some homes are on the market for just one day. It’s important to move quick on the home you want. 

Our team will offer advice on how to increase your odds on getting your offer accepted. 

Step 6: Inspections and Appraisals

Once a seller accepts your offer there are a few important things that will help you ensure you’re purchasing what you want. 

Inspections: A licensed inspector that you choose checks the house for any unseen or potential issues.

Appraisals: An appraiser that is hired by your lender will look at the house and determine how much it’s worth.

Step 7: Final Walkthrough 

The final walk through ensures everything is still how you saw it.

All trash and belongings have been removed by the previous owners

Items that were supposed to be fixed during negotiation were in fact fixed. 

Ensure all appliances included in sale are still in the property

All keys required are available

Confirm imperfections and cosmetic work was fixed as agreed 

On closing day, be prepared to sign a lot of paperwork. The closer will explain what you are signing but make sure to read everything carefully and ask any questions you may have. 

In summary The Seven Steps to buying a Home are:

1.  Getting your finances in order 

2.  Deciding what neighborhood is best for you 

3.  Get pre-approved 

4.  Go house hunting 

5.  Make a strong offer 

6.  Prepare for inspections and appraisals 

7.  Do a final walkthrough and close

Book a video chat today or an office appointment!