First Steps in Buying A Home : A Guide for First-Time Buyers

Buying a home is a memorable milestone, but it can also feel overwhelming and intimidating, especially for first-time buyers. Knowing the first steps of the home-buying process will provide you with the assurance and confidence you need to make the right choices on your future home. Here’s everything you need to know as a first-time buyer. 

1. Find the Right Agent

One of the most important steps in buying a home is finding the right agent. A skilled agent will be your mentor, advocate, and negotiator throughout the process, they are more than just someone who shows houses.  Throughout the entire process, an experienced agent will act as a guide, assisting you in understanding the market, assessing properties, and navigating negotiations. For buyers who are unfamiliar with contracts, timelines, and local market conditions, the right agent will avoid costly mistakes and guarantee they always have the best interest of the buyer in mind. 

2. Homebuyer Consultation
 

A homebuyer consultation is the next step in the process. This meeting with the agent will allow you to discuss your wants, needs, budget, and a realistic timeline with the agent. The agent here at Keller Williams will then find the right lender for you. This consultation will give you a better idea of what you can afford, what kind of house best suits your lifestyle, and what actions you will need to take before starting your search. 

3. Understanding Your Credit and Financial Health

Understanding credit and general financial health is a crucial step in the beginning process of buying a home. A buyer’s credit score has a direct impact on loan eligibility and interest rates, which in turn affects monthly payments and total costs. Financing options can be improved by reviewing credit records, fixing mistakes, and managing debt responsibly. Despite having a less than perfect credit history, many buyers are surprised to learn that they can still qualify for a mortgage, especially if they are working with an experienced lender. Although there are many lending choices available to buyers, financing is not the same for everyone. The standards for conventional loans and programs like VA and FHA vary. The right agent and lender will find one that meets your needs as a buyer. 

4. The Search

When you are financially prepared, the search for a new home begins. This step involves viewing properties, comparing neighborhoods, and evaluating each home’s suitability for both short term and long term goals. By finding suitable properties, scheduling showings, and providing guidance on pricing and market conditions, the right agent plays a crucial part in this process. When the right home is found, the agent will help you create a competitive offer that represents market value and maintains your interests as the buyer. This includes figuring out the offer price, negotiating terms, and identifying contingencies including financing, appraisals, and inspections. 

5. Closing Costs and Other Expenses

Buyers should budget for closing costs and other home-related expenses in addition to the down payment. Costs related to the loan, appraisal, title services, and taxes are part of the closing costs. Recognizing these costs at the start of the process will assist you in avoiding unforeseen surprises and curating a more precise budget. Many buyers do not realize that there are loan and payment programs available to reduce the upfront costs of buying a home. Your agent and lender can help you find the right fit for your needs. 

6. Know Your Options

Additionally, buyers should be aware that there are multiple paths to homeownership. Some opt for a starter home, a smaller home that accommodates 2-3 people, around 1,000-1,400 square feet. The current price point for a starter home is around $100,000. Others opt for a fixer upper, the price point is lower than the standard starter home, since the home will need repairs beyond updating. The price point for a fixer home is around $50,000. This allows buyers to put their own creative touch on a home and make it more custom to their needs. Another early option for buying is a duplex, you live on one side and rent the other. The right approach depends on your specific situation, and getting professional guidance from your agent and lender will help you choose the best fit for you. 

Making Homeownership Happen

Buying a home is one of the most significant personal and financial decisions you will have to make, but you don't have to handle it alone. Having the right agent will make the entire process feel less overwhelming and more fulfilling. The right agent will help guide you through every step with your best interests in mind. When you’re ready, start your homebuying with confidence by partnering with an agent here at The Selling Team with Keller Williams Realty. 


Written by Jada Mohon
The Selling Team with Keller Williams Realty