First time Home Buyer
Buying a home for the very first time can be intimidating, but it doesn’t have to be! Talking to the right people will help you feel better about your decisions when purchasing a home. There are a couple of steps you need to do before you get started. Below you can read the steps and requirements you need to start your home buying process.
Get your finances in order
The two main important things to have ready is having a good credit score and funds for closing costs. This will ensure that you will get approved for a loan and have enough funds to cover on closing day. It’s also good to create or plan a budget to let you know your ideal monthly payment.
Finding a lender
Without a lender you won’t know how much you can afford. Look for a lender who is going to work with you and provide options for you based on your needs. Mortgages aren’t “one size fits all,” so you want to find one who will take your individual situation and find what works best for you. Once you are pre-approved for a home loan, your lender will give you a pre-approval letter showing what price range you can afford, including the estimates on your monthly payment and closing costs. Now you can go onto the next step, which is looking for a realtor! Having your pre-approval letter will also show you are a serious buyer ready to find your dream home!
Click here and go to the documents tab to see which required documents you will need to apply.
Finding a Realtor
Now that you have your pre-approval letter, you can start searching for a realtor. Find someone that is willing to put the time and effort in finding a home that is the perfect fit for you. Now you can go to the fun part and that’s house hunting! You might not find a home that has everything on your wish list, but it’s good to have an opened mindset, you can always change things to your style like paint, hardware, flooring etc. Don’t get discouraged if you don’t find something right away.
Closing the deal
Now that you found your dream home and the seller approved your offer, you are officially under contract! So, what now? Well, here are a couple things you will need to do before your official closing date comes.
- Turn in Earnest Money check to title company
- Get an appraisal (this will be the actual worth of the property, which may be less or more than what you are paying it for)
- Schedule a house inspection (this is good to have in case something within the house needs to be fixed, you can negotiate to bring the price down or have seller cover some or all closing costs!)
- Purchase Homeowners Insurance
- Schedule a final walk-though
- Closing Day!
That’s it! Congratulations, you are officially a homeowner! We hope this helps and gives you an overview of what to expect when purchasing your first home. We know it can seem overwhelming at first, but with a good team behind you, it can be a smooth and easy process.
For more information please contact:
Call/Text: 281-487-9333
Toll Free: 800-683-3863
Email: realestate@gcefcu.org
Post author: Angeles Lopez