A first home buyer is someone who does not own a principal residence for three years before the date of purchasing a new home. Buying a new home as a first home buyer might seem like a daunting process. Well, there's no need to fret. This article explains the home buying process in detail. Kindly follow through.

First Time Home Buying Process

When purchasing a first home, there are several steps involved, including;

1. Figuring out your budget and sticking to it

It is essential that you are honest with yourself, your mortgage lender, and your real estate agent to avoid ending up with a home you can't afford.

It is best to figure out the amount you can afford every month while factoring in maintenance costs and unexpected emergencies if you are buying your home with a partner, factor in what would happen if one of your income sources were to stop.

2. Getting quotes from multiple lenders

It is advisable to get quotes from at least three lenders. Also, compare the lenders' offerings, including their interest rates, APR, fees, and closing costs.

3. Getting loan pre-approval

After deciding on a lender, get a mortgage pre-approval before shopping for a home. Pre-approval shows a seller how serious you are about buying the house.

4. Finding an efficient real estate agent

A real estate agent knowledgeable about the area you wish to purchase a home is a plus. An efficient real estate agent can help you find the right home and negotiate the best offer.

5. Shopping for your home

Ensure your real estate agent knows what you're looking for. Always do your research on the homes you want to see, as well as the neighborhood.

It is best practice to visit the neighborhood you want to move to at different times of the day, weekends and holidays. Also, try to talk to the neighbor to know more about the neighborhood.

6. Making an offer

After discussing a reasonable offer with your real estate agent, be prepared for some back and forth with the home seller, especially when there are other buyers. Regardless of how you love a home, always walk away if it doesn't fit your budget.

7. Negotiating closing costs

Real estate sales of closing costs, and there are several ways of paying them. You can roll them into your loan, or the seller may be willing to pay part of the fees. It is important to note that rolling them into your loan can become expensive over time.

8. Hiring a home inspector

After deciding on a home, you like and making an offer, the house needs a thorough inspection. Although the costs of a home inspection may be between a few hundred to a few thousand dollars depending on the size of the home, the price is worth it. Home inspections can detect structural problems or any issues that may affect the livability of the house.

9. Getting insurance and finalizing move in

Usually, mortgage lenders require homeowners’ insurance to protect your investments. You can work with an insurance broker to get you the best rates. Also, you should contact your utility providers, including cable and internet, to arrange a new service for your move-in date.

10. Sealing the deal at closing

Before closing the deal, you'll have to prove your employment status and that you will make your mortgage payments. It would be best to do a final walkthrough of the property to ensure it is vacant and that the necessary repairs were made.

During closing, you will sign paperwork that finalizes the loan and transfer the property's ownership from the seller to you. After closing, you will get the keys to your home and officially become a first-time homebuyer.

Conclusion

Purchasing a house is not an easy task that happens overnight; it requires a lot of planning, research, and budgeting.

When getting a home, ensure you stick to your budget and find an efficient real estate agent that understands your need.