Buying a home for the first time is one of the most exciting, daunting steps of your life.   Many first time home buyers are optimistic, but few have any idea how many steps are involved in purchasing a home, nor how easy it could be to make a major mistake.  You might be surprised, though, at how smooth the process can be with professionals at your side.

Our team at Washburn Real Estate will walk you through each step of the process, making the buying experience as easy, profitable, and simple as possible.  Here are a few steps to buying a home.

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Step #1.  What is your budget?

The best place to start is to assess how much you can afford.  Many clients have friends or family in the mortgage industry, and for others, we have a network of affiliates we trust and can recommend.  Find out how much you can qualify for, how much you can afford, and how much you want to commit to a mortgage payment.

There is no sense in getting your hopes up for a home you cannot afford.  That’s what home shows are for!

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Step #2.  Finding

Finding your home, or shopping for homes, is the next step, and with a little guidance and an effective finding strategy, this can be a lot of fun!  You are the buyer and you have leverage.   Use your Agent, and have fun eliminating, and finally selecting your home.  Keep your eyes wide open, and let your Agent know exactly what you are thinking.  Don’t worry, it won’t hurt our feelings if you don’t like a home!

Your finding process will likely include internet searches, driving neighborhoods, and even word of mouth.  If you are interested in ANY home (for sale by owner, or by brokerage), jot down its address and send it to us.  We have access to valuable information not available to the general public.

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Step #3.  Making the Offer

Once you have found your home, now is the time to make a competitive offer.  This is where you will really appreciate your agent.  We use State Approved Forms which will protect you and give you several contingencies to protect your position as a buyer.  When you make the offer, you will submit an Earnest Money Deposit (typically $500 to $3,000) to show that you really are interested.  Once your offer is accepted, you will have multiple opportunities to “change your mind” and to withdraw your offer and all of your Earnest Money Deposit will be returned to you.

1. Sellers Disclosures. The seller will provide a detailed list of any problems the property may have.  If you object to any, you can withdraw.
2. Due Diligence Evaluations and Inspections. We will refer you to a professional inspection company which specializes in inspecting homes.  If anything surfaces in the inspection, you can ask the seller to fix those items, you can renegotiate the offer, or you can withdraw.
3. Appraisal. Your lender will require that their appraiser inspects the property to assess its value.  If you have offered more than the property is worth, you can withdraw, or renegotiate.
4. Financing. By this point you have already received a pre-approval.  However, sometimes after a more thorough look at your finances or at the home, your lender may not be able to offer you a loan.  If this happens, you will be able to withdraw your offer before the financing deadline.

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Step #4.  Due Diligence

Now that you have submitted an offer and the sellers have accepted it, you need to make sure that this is the house for you.  We will be there each step of the way for you, helping you arrange for inspectors, assisting your mortgage lender, coordinating with appraisers, working through problems with the seller’s agent and the seller, making repairs, coordinating with your title insurance and escrow officers, and making sure that you meet all of your deadlines.  On the side, you might want to start thinking about packing for your new home!  (But don’t go buy a car or new furniture until you have the keys in your hands!!!)

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Step #5.  Settlement

Settlement Day is a great day, and make sure to be ready to sign your signature and initials several dozen times!  We will help you select a TitleAgency which will issue a title insurance policy which protects your ownership in the home.  On Settlement Day, all contracts will be finalized and submitted to appropriate parties to close the deal.  Don’t worry, we’ll be there with you to make sure you understand the process and to ensure no surprises.

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Step #6.  Your Keys, Your Home!!!

Congratulations!  You are a homeowner!  In the history of the world, a very small percentage of people have actually ever owned their own home.  What more important possession will you ever have than your own home?  Enjoy!