What First Time Home Buyers Should Know Before Buying

Buying a home for the first time can be a confusing process. There are so many details to deal with. These tips can help you reduce stress and make home buying a more enjoyable process.

First, if you are going to finance your home, you'll need to get a mortgage pre-approval from a mortgage lender of your choice. This will help you determine what homes to look at. Nothing is more disappointing than looking at homes and finding the perfect home, only to find out that you cannot get financed for the home.

Next, avail yourself of the services of a realtor. Yes, it is possible to purchase a home without a realtor, but a realtor handles all of the not-so-exciting details for you. Your realtor will line up homes in your price range to look at, make the appointments for viewing, handle paperwork, and deal with the small details. This will leave your mind free for processing all the information about the homes you look at. When we purchase our first home and second home, our realtors provided us with binders full of information about the homes we saw, with room for notes, and a comparison chart that we could use to list the pros and cons of each house we saw.

The most important step is to figure out what type of home you want before you set out to find it. What size house are you looking for? Do you want a lot of land? How many bedrooms and bathrooms are you looking for? Do you need a garage, and if so, how many cars do you need to park in it? Do you want a fireplace, pool, or hot tub? Make a list of all the things that are must-haves, and those things that you would like to have, but aren't set on. This will help you narrow down your choices so you aren't so overwhelmed.

You'll also want to determine your price range. Make sure to factor in the home's purchase price, taxes and insurance, and any repairs, maintenance or upgrade costs. If you move into a neighborhood that has a Home Owner's Association, you'll also want to factor HOA fees into your budget.

When you find the right home, you'll need to make an offer. Your realtor will help you determine a fair offer, and submit the offer paperwork to the seller's agent. The seller can accept your offer, make a counter-offer, or reject your offer. If the seller accepts your offer, you just bought yourself a home. If they counter, you can either accept their counter-offer, or counter back. If they reject your offer, you can make a new offer as long as the property is available.

Once you and the seller have agreed upon a purchase price, you'll need to have the home inspected. Your realtor can set up the inspection. If the home passes inspection, you'll move on in the process. If the home does not pass inspection, you have a couple of options. You can cancel the sale, or you can negotiate with the seller to have them fix the items that are wrong with the house.

Finally, you'll close the deal. Your realtor will set this up with the seller's agent. At closing, you'll sign lots of paperwork, transfer funds, and get the keys to your new home. In some states, you'll take possession of your new home immediately, other states allow up to 30 days after the closing for the old owner to vacate the home and the new owner to take possession.

Above all, enjoy the home-buying process, and good luck in your new home!