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Your Blueprint to Buying a Home: The Process Unpacked

Kyle Camerlinck

10 Jul 2023 — 3 min read

1.     Get Finances in Order: The first step in buying a house is determining what you can afford. Homes are one of the most significant financial decisions most people will make throughout their lifetime. To better understand what priced home makes the most sense for you and your family, I recommend using a home affordability calculator or speaking to a mortgage lender. I have attached a link to a home affordability calculator below, or you can contact me to connect you with a lender.

https://www.nerdwallet.com/mortgages/how-much-house-can-i-afford/calculate-affordability

2.     Figure out a down payment and get pre-approved for a mortgage: Lenders can help you determine your down payment by explaining how much you should/ can put down on your home. While 20% down payments used to be expected, many home buyers are putting down much less. As first-time home buyers, one can put down as little as 3.5%. While a small down payment sounds enticing, it can lead to higher interest payments and larger monthly payments due to mortgage insurance. Discussing these options with a professional to understand the benefits and downsides of each option is essential.

3.     Find a real estate agent: Real estate agents are very beneficial during home-buying. They can use the skillset they have acquired through their experience to provide valuable information about home ownership and the area you might not have known well before. Agents might also find homes for sale that you might need access to see. In addition, buyers rarely pay a commission to their agent because it is all taken care of by the seller, which makes it almost a no-brainer.

4.     Start your search: The search is essential to the process, and you must remain patient. Buying a home is a significant financial decision, and you want to ensure you are happy with your purchase. It is not worth it to rush into a purchase simply because you feel there are no other options. The perfect home is right around the corner. Just continue to feel the options, take pictures and notes and ask many questions.

5.     Make an offer: Once you have found a home you love, it is time to make an offer. Your agent can benefit in this step by providing comparable or similar homes to ensure you pay the appropriate amount but still get your offer considered. In addition, agents can sometimes get information on the seller, like if they are motivated sellers or just listing their home to see what kind of offers they can get.

6.     Get a mortgage: Once you know exactly how much you will pay, it is time to get a mortgage. You can go to the same lender that pre-approved you or find a new one. They will need your financial information, like W-2 forms, income tax returns, SSNs, etc., to validate all your information.

7.     Get homeowners insurance: Some lenders might require homeowners’ insurance to approve you for the loan.

8.     Have the home appraised: The appraisal is mainly for the lender, so they ensure they are lending you only as much money as the home is worth. The assessment will provide an estimate to the lender of the home's worth. While the lender usually chooses the appraiser, the buyer should pay for it.

9.     Get an inspection: Once your offer is accepted, it is crucial to get a home inspection. The inspection will ensure the home is up to your standard and there are no repairs you were unaware of or want to receive credit for upon closing.

10. Negotiate credits and repairs: If there are any unexpected issues with the home or things that need repairs, the buyer can request a credit from the seller. However, the seller does not have to approve of the credit and could deny the buyer’s request, especially in a strong seller’s market. In other situations, the buyer and seller could negotiate repairs instead of requesting credit. Sometimes the seller would prefer doing the repairs themselves than giving a credit.

11. Close the sale: The last step of buying a home is closing the sale. Once everything is agreed upon, it is time to sign all the closing documents and pay the closing costs. Do not worry; the lender and your agent will assist you.