Timeline for First -Time Home Buyers
You have your pre-approval, you have your finances in order, you know how much you can afford and now you want to get to the exciting part. Being a first time home buyer there are so many things to consider, we have created this handy little timeline to ensure your priorities are in order and help you understand what to do first.
- Looking for that perfect home.
Finding a beautiful home that is perfect for you can take time, anywhere from one week to a year depending on just how big or small your list of ‘wants’ are and how you are willing to compromise . By providing your realtor a list of the things that you must have and a list of things that you do not want, is the place to start. While a wish list a great place to start, it is wise to keep in mind that you may have to make concessions or compromises depending on what properties are available. When you do find that perfect property, you will want to put in an offer. Your realtor will then help you to decide on an offer price, negotiate on your behalf and look out for your best interests.
- Congratulations. Offer accepted. Now it’s time for the home inspection.
It is in your best interest to get a professional to inspect your potential new home in order to uncover any ‘red flags’ that may not be visible to the naked eye, (i.e. lack of insulation, moisture… etc.). In some situations when the market is very hot and properties are selling in multiple offers, a home inspection is not done. In a situation such as this, prospective buyers will enlist an inspector to do a pre-offer inspection, or the seller will provide a pre-list inspection so that everyone can see what is right and wrong with the property from the start. This provides potential buyers the peace of mind to put in an offer without a home inspection condition.
- Finalizing your mortgage.
So you have been to the bank to get your pre-approval (please see previous blog), Now that your offer has been accepted, you must go back to your lender so that they can finalize your mortgage. During the pre-approval process, they examined your financial history and now they are going to be looking at the purchase price of your new home to ensure it is in line with their policies. There is a possibility that your lender will require an appraisal to verify that the house is worth the purchase price. If not they will then ask you to come up with the difference. At this time, you will also finalize your monthly mortgage payments, your amortization rate, your loan type and term. Once you have been given the okay and signed the mortgage commitment, you are free to remove that financing condition and you’re one step closer to getting your keys.
Your lawyer will now see you through to closing and picking up your keys. Your lawyer will review the accepted offer, making sure that all the t’s are crossed and i’s dotted. Your realtor can refer you to a lawyer that can handle your home purchase.
You have completed your inspection, your mortgage is finalized, you have spent the last couple of weeks thinking where your furniture will go and now your closing date is approaching. At closing you will pay your lawyer, provide any necessary documents and your lender will release your loan. Your lawyer will handle this transfer and take you through all the documents that you need.
Congratulations. You have just purchased your very first home! Now, every transaction is different. Some can be smooth and some can be a little turbulent. Some can take two weeks, whereas others can take a lot longer. Regardless of how long it takes, choosing the right realtor for you is the key. They are able to guide you through every step and help steer clear of the obstacles.
Are you looking to buy your first home? If you are, please contact us at firstname.lastname@example.org and see why we go the extra mile for our first-time home buyers. Let our family help your family.