The other day I met with new home buyers and once again was remindedÂ that I sometimes forget how stressful the home buying process can be when you havenâ€™t a clue what the steps are for making the biggest purchase of your life.
So hereâ€™s a short course in what to expect when buying your first home. Hereâ€™s the easy part:
1. Get aÂ pre-approval from a local mortgage representative. Your realtor can help you if you donâ€™t have anyone in mind.Â Itâ€™s important to have someone to sit down with that can answer your questions. Your realtor can and should go with you to the appointment.
2. Look for your new home. This is the fun part! Itâ€™s exciting to go out looking at homes.Â Donâ€™t succumb to the urge to look at homes that are more than you can afford.
Next is the part that causes the most stress:
3. Put in a contract on the home you want.Â Your realtor will walk you through this process, so donâ€™t stress about this area. She or he will explain the contract line by line and help you determineÂ what to offer on the home and set dates, for example, the settlement and inspection dates.
4. Negotiate the terms if the contract is not accepted as is. Remember that the seller is just a person like you. Their home is their castle and even though the itâ€™s a â€œbuyers marketâ€ that doesnâ€™t mean that you can take them for all they are worth. If you really want this house, be fair and reasonable.
4. Contract a case of Buyerâ€™s Remorse. Wake up in the middle of the night the veryÂ first night after putting in the contract scared to death you did something that you (and your mother, father, brother, children, your childrenâ€™s children and everyone you ever came into contact with throughout your whole life) will live to regret. Isnâ€™t there some way to get out of this?
WHAT HAVE I DONE?
Donâ€™t think it will happen to you? Thatâ€™s what everyone thinks, but you just agreed to spend more money than you ever have in you whole life. Buyerâ€™s remorse is very common, and there are a few things you can do now to help you through. Youâ€™ve done the first thing in recognizing that it might happen. The other thing you can do is write down on a piece of paper all the reasons you want to own a home of your own. Write down all the things you love about the home you have chosen and how these things make you feel. Put the paper in a drawer next to your bed. When you wake up in a panic in the middle of the night, get out the paper and read it. It should bring everything back into perspective and you can sleep soundly the rest of the night.
5. Apply for your mortgage. As soon as you and the seller have reached an agreement, apply for your mortgage immediately toÂ ensure your lender has enough time to comfortably complete the mortgage by the settlement date.
6. Start packing your stuff if you havenâ€™t already. Remember to reserve the moving truck!
6. Have a home inspection. Donâ€™t cut expenses here. If you do you could be paying the price for some time to come! Your realtor can help by recommending a home inspection company if you donâ€™t already have a company you would like to use. Go to the inspection yourself. Ask questions. You can learn a lot of useful information about your new home, like where to turn the water off for the house.
7. Get homeownerâ€™s insurance. By combining your home and auto insurance you can save money! Shop around because premiums can vary drastically.
8. Do a final walk-thru before going to settlement. If the house is not in the same condition when you saw it last, this can be addressed at the settlement table.
Congratulations! There has never been a better time to buy a home
~Susan Sells Fast~
Oh, by the way, I am never busy for your referrals!