Scrolling through homes on Zillow, after filtering by zip code of course, its easy to start picturing yourself in your future home. However, before you starting picking out which floors match best with your furniture, its important to your due diligence to make sure that buying a home is the right move for you.
1) Pre approval
The first thing a new home buyer should do is apply for a pre approval. First, use a mortgage affordability calculator to determine how much house you can actually afford. Then start reaching out to lenders to check mortgage rates and determine which lenders work well with you. You will need a pre approval letter in order to make any offers on a house you like, and especially in the current hot housing market time is if of the essence.
2) Find a trusted realtor
Online tools like Zillow make it simple to find realtors at the click of a button, however the first realtor you connect with may not be the best fit for you. Realtors are not always required in the homebuying process, however they know the area and the locals markets better than most and can help you find the best house for you and negotiate the best price.
3) Search for your new home
Other than location there are several things to look out for when looking for a new home. Be sure to check out big ticket items like electrical, plumbing, roofing and HVAC for their condition and the last time they were replaced. Your realtor can look into if the home has had radon, lead paint or carbon monoxide inspections and ask to see the results.
4) Make an offer
When making an offer your realtor will be able to guide you based on home sale statics in your area. They will then submit your offer for review to the sellers realtor. Additionally you can also customize your offer to add contingencies, deadlines, and handwritten letters to create a more competitive offer, but I'll touch more on that later in another blog post. To confirm your interest you will usually have to put down an earnest money deposit (1%-3% of home price) as a cash advance. But be sure you are truly interested in the home, as if your offer is accepted you can lose this money if you walk away from the deal.
If your offer is accepted, congrats your have bought your first home! If not, check out my next blog post on create a custom offer letter!