There’s a ton of decisions, preparation, and work that goes into buying your first home. Not only do you have to have a large amount of cash available, but you also need to have a qualifying credit score and be able to get the right loan for the home you need. It’s a big undertaking and it can seem a little daunting when you start to add up everything that needs to be taken care of.

Don’t get scared from the process, however; purchasing your first home can be one of the most rewarding experiences you and your family can have! To help, we’ve put together a first time homebuyers guide for your reference below; it should help to organize and prioritize things for you a bit so you can get the job done.

Make a List

Before you begin your home shopping, you should have a really good idea of what you need and what you want in a home. How many bedrooms do you require? What location would you like the home to be in? What amenities would you prefer? During this step, it’s important to note what you can compromise on and what are must-haves for you and your family.

Shop Around

Once you have a good idea of what you’re looking for in a home, it’s time to shop around and get a feel for what’s available that might fit your needs. During your initial search, you’ll be able to see what’s available on the market and at what cost.

Figure Out How Much You Can Afford

Once you have an idea of what you want/need in a home and what’s out there in the market, it’s time to figure out how much home you can afford with your budget. You may not be able to afford the 5 bedroom you’ve got your eye on, or you may find that homes in the neighborhood you’re interested in simply won’t work with your budget. When you’re configuring this part, make sure you are working off a realistic budget that includes all of your current monthly bill obligations and any savings you have. You should also use a mortgage calculator online to calculate how much mortgage payments will be with different home prices. If you discover that your needs and wants can’t be met with your budget, you’ll want to revisit the drawing board on your list and see what you can revise in order to find a home that’s more budget-friendly.

Shop Mortgage Lenders

Before you begin to actually shop around and put offers down, you’ll need to figure out your lender situation. Take the time to compare mortgage lenders and get an idea of who you’d like to potentially work with. Read reviews on the lenders, look at who has competitive rate offerings, and determine who has the loan programs that will work best for your financial situation.

Get Pre Approved

Once you’ve decided on a lender, it’s important to get pre approved before you continue your home shopping process. When you find a home you want to put an offer down on, it will make the process more enjoyable and smoother if you already have a lender ready to work with you and give you the loan terms that you need for your budget.

Find an Agent

Now that you have a good idea of what you are looking for in a home and have the confidence of a pre approval, it’s time to snag a realtor to help you find the right home. Be sure to choose a realtor that is comfortable with the market in your area and that has the experience and certifications required. It’s also a good idea to read reviews on any realtors you consider to get an idea of previous customer experiences.

Make an Offer and Negotiate

Once you and your realtor have found a home that you want to purchase, you should be ready at this point to make an offer. Discuss with your realtor what they think is a good offer to make in order to stay competitive, but also to pay for the home’s actual value - you’ll find often times that homes are overpriced over their actual worth. Once you’ve made your offer, the seller may accept, reject, or may come back with another offer; don’t hesitate to negotiate with the seller in order to get the best price for the home.

Inspect and Appraise

Before you close on the home, you’ll need to get all inspections done to make sure it’s in tip-top shape. Your home inspection checklist should include:

• Roof
• Foundation
• Electrical panels and all related electrical
• Gutters and downspouts
• Attic
• Exterior panels, paint, stucco, brick, siding, etc.
• HVAC systems
• All plumbing
• Ceilings
• Walls
• Floors
• Doors
• Windows
• All stairs and steps
• Railings
• Basement
• Walkways
• Garage
• Driveways
• Appliances
• Porches and balconies

It’s important not to skip this process because you may find that the home has problems not previously seen that can be expensive to repair and may greatly devalue the home. Your mortgage company is also going to want to perform an appraisal at this time to ensure they are not approving a loan for more than the home is worth.

Close

Now that your offer has been accepted and all appraisals and inspections have been completed, it’s time to close on the home. During this process, you’ll go through final paperwork and financial checks with your lender. Once completed, you should then be able to finalize the mortgage on the home and take over as owner.

Enjoy

The hard work is done and you are now the proud owner of a new home! Time to kick back, relax, and enjoy!