Congratulations! You’re taking the first step towards achieving one of the most significant milestones in your life – buying your first home. While it can be overwhelming to think about the process, it doesn’t have to be. With a bit of preparation and guidance, you can make your home buying experience enjoyable and stress-free.
Thinking about buying your first home?
Know your budget
The first and most crucial step is to determine your budget. You must understand what you can afford based on your income, expenses, and existing debt. It’s important to connect with a reputable lender to get pre-approved or receive a loan commitment. This will signal to a seller that you will be able to obtain financing when you submit an offer on a home. Before you start house hunting, make sure you have a clear understanding of what you can afford so that you don’t waste your time looking at homes that are outside of your budget.
Research neighborhoods
Once you have your budget in place, it’s time to research neighborhoods. Consider factors such as location, schools, commuting time, and local amenities when deciding where to purchase a home. You can spend time driving around neighborhoods that you’re considering during different times of the day to get a true sense of the community and what it would be like to live there. Don’t be afraid to park your car, get out, and walk around. Talk to neighbors and ask for their thoughts on the neighborhood and if they would recommend their friends and family to live there.
Hire a skilled realtor
A skilled realtor can help you navigate the home buying process from A to Z, provide valuable advice, and help make sure that you don’t miss out on anything and/or pay too much for the home you ultimately end up purchasing. Keep in mind, a Realtor® has a legal obligation to act with integrity and do what is in your best interest. Selecting a skilled realtor that you feel comfortable with can make the difference between an insufferable and frustrating experience and an enjoyable experience that you tell all of your friends and family about.
Home inspection
Once you have your offer accepted, but prior to closing on the home, you’ll want to have a home inspection completed. A home inspection can help identify any issues with the home that may not be visible during a walkthrough, such as structural problems, plumbing or electrical issues, or even mold.
After the home inspection is complete, you will receive a report of the home inspector’s findings and recommendations. It’s important that you know your options after your home inspection. Your three choices are 1) you can move forward with your purchase without any requests to the seller, 2) move forward with specific requests based on the findings of the home inspection (ie. request the seller to replace gutters), or 3) use your inspection contingency to back out of the deal.
Review the home’s title report and history
A title company will run a title report on the history of the property, including past liens, encumbrances, etc. Don’t get overwhelmed by this as the majority of homes will pass this title inspection without any liens or something that would delay or even cancel the transaction. In the event that a home has a lien against it, the title company would work with you and your realtor to find a solution. That is their job, not yours!
Understand closing costs
You’ll want to be aware of the various costs associated with closing a real estate transaction, such as title insurance, appraisal fees, property taxes, HOA transfer fees, etc. Closing costs in the greater Nashville area will typically range between 2-4% of the purchase price. If you work with a skilled realtor, depending on the market, they will work on your behalf to negotiate the seller to cover some of your closing costs.
Take advantage of first-time homebuyer programs
Be sure to work with a reputable lender who can help you discover the various first-time homebuyer programs available to you. These programs can offer benefits such as lower down payment requirements, tax credits, or even down payment assistance, so take advantage of them to make your buying your first home more affordable and accessible.
I understand that buying a home for the first time can be a daunting task, but with the right guidance and knowledge, it can be an enjoyable experience.
Remember to understand your budget, research neighborhoods, work with a skilled realtor, conduct a home inspection, review the home’s title report, and understand all of the costs that go into closing on a home. Don’t forget to talk to a reputable lender about how you can take advantage of first-time homebuyer programs. Knowing all of this, you’ll be confident throughout the entire process.
Need to connect with a lender?
If you need recommendations for an amazing local lender, please click here to view my preferred lenders and feel free to contact them (please let them know Brett Hickey referred you and they will take care of you!)