Buying Your First Home? Here's How the Process Works

If you've never bought a home before, thinking of buying one can be a scary thing. They are huge investments for the average household, and to think you'll be paying on a home for 30 years can seem overwhelming.

There are millions of homeowners across the United States that felt like you did at one time. Overall, owning a home can be a very satisfying experience, as you can say you own your own piece of the American pie.

Here is a run down of what you can expect when you set out to buy your first home. Although it may seem overwhelming, it doesn't have to be!

Check your credit rating, and talk to a lender. It's always a good idea to pull your credit before you set out to get pre-approved. If there is anything on there that might be negative, it will give you a good heads-up about what will come up when you talk to your mortgage broker. If there is anything that might be wrong, it will also give you the chance to correct it. Even if you don't have stellar credit, it's okay! There are very few people that do, and they can still purchase real estate.

This will also not be the time to make any major life changes, such as buying a new, expensive car or quitting your job. Get your house in good financial order before you take the first step.

After you speak to your lender, and get your official pre-approval letter, you can set out to find a good real estate agent. Make sure they are knowledgable, and know the real estate market well for your area. Constant communication is key as you look for your home, new properties come on the market on a daily basis, and you don't want to miss out on what could be your perfect house.

Once you've found that perfect place, and want to make an offer, you're agent will walk you through that and explain the contract. You'll need a deposit check to hold your house for you, and a pre-approval letter to send in to show the sellers that you're ready, willing and able to buy their home. Make sure your offer has any contingencies that you need, for example if you need to roll your closing costs in. Everything needs to be in writing, there are no more gentlemen agreements in real estate!

After you're offer has been accepted, there are a few things you'll need to take care of. You might want to consider a home inspection. Hire a professional home inspector to come and check out the property for you. You can find more information on what happens at home inspections here:
http://www.associatedcontent.com/article/174792/what_to_expect_at_a_home_inspection.html

If you're satisfied that the house is going to meet your needs, both physically and emotionally at this point, you can proceed to signing the Purchase and Sale agreement. This is a longer contract, and specifically states what the obligations are on both sides of the agreement (buyer and seller)

Your lender will order an appraisal as soon as he or she gets a copy of the Purchase and Sale agreement, and the appraiser will come in and inspect the property to determine value. Your lender will want to know that the house you're buying is worth the money they are lending you. Should you ever default on your loan, they want to be able to sell it and recoup their money back. You do not have to be there for the appraisal.

After everything has been determined to be of value, you'll have to purchase an "insurance binder." This will show the lender that you have insurance on your property should there ever be a disaster. They want to protect their interests, and it's always a wise idea to carry insurance on your property.

Now that this has all been done, it's time to get ready for the closing. The closing will take place either at your local Registry of Deeds, or at the closing attorney's office. Normally, you, the sellers and all the real estate agents involved will be there along with the closing attorney. You can expect to sign a lot of paperwork, and spend approximately an hour at the closing table.

See! It doesn't have to be so bad! The process might sound intimidating, but all in all it can be very easy.