A Homeowner At Last

First of all, congratulations on finally deciding to buy your first home! Becoming a first-time homeowner is a big step in life. Owning a home can bring great joy and new memories that will last a lifetime. Any decision made in life is an investment but owning a home is a big one. For a first-time homebuyer, the process and steps can be daunting when finding and selecting a home. You may be anxious about making a mistake in your decision, but there are a lot of resources to prevent this feeling. The sooner you prepare for this big moment, the better off you will be. Even if you are considering buying a home in the future, these tips will help create a savings plan for your down payment and other expenses in the home buying process. 

Before you begin to look at homes, there are a few questions you should ask yourself:

1. How is my financial situation?

You should evaluate your savings before buying a home. If you do not have three to six months of living expenses saved in an emergency fund or savings account, you should wait to buy a home. You will have to pay for several up-front costs, including earnest money, home inspection, down payment, and closing costs. You will also want to check your credit. To qualify for a loan, you will need to have a good credit history. 

2. What type of home will best suit my needs?

There are plenty of homes to choose from, you just need to find the best one for you. Will a single-family, duplex, or townhome be enough? Perhaps a condominium will work, but either way, you need to look at the pros and cons of each. When choosing a home, you want to consider your current and future needs (i.e. will you be having kids soon, do you have family or friends that visit a lot, how long do you plan on being in the home before buying a new home).

3. How much can you afford?

Before putting in an offer anything, you will need to consider how much home you can afford. You can get an idea of how much lenders will give you for the home through mortgage pre-approval with a home lender. Before making a decision, you should shop around for a lender to compare interest rates and fees using tools such as a mortgage calculator. After you find out how large of a loan you’re approved for, you can start looking for a house that fits that budget - remember to look at the cost of the home, property taxes, and insurance.

Now that you’ve been pre-approved for a loan, the fun can begin! It’s time to start looking for your new home - there are plenty of resources such as Realtor.com or Zillow.com to search for homes online. You could also drive around the neighborhoods you want to live in and see if there are any for-sale signs in yards. Once you’ve found a home that you’re interested in, it’s time to meet with a real estate agent! Remember to ask the agent every question you may have, chances are they’ll have an answer or will be able to get an answer from the owners.

After finding a home that fits your needs, you can make an offer. You should discuss the amount you’re thinking about offering with your real estate agent, they’ll be able to help you decide on a reasonable amount for the initial offer. Your agent will present the offer to the seller’s agent then the seller will either accept the offer or issue a counteroffer. You can either accept the counteroffer or continue to go back and forth until you reach a deal. If it comes down to it, you could also call it quits and look for a new home. Once an agreement is reached, you will make an earnest money deposit. You will then transition into escrow where the seller will take the house off the market, expecting that you will be able to buy it. 

Once the home has been inspected and appraised, you should be ready to purchase an insurance policy and close on the home. This process involves a final walk-through of the home, signing paperwork, and paying closing costs. Once everything is signed and paid for, you will become a new homeowner. You should continue to keep saving and performing regular care and maintenance on the house. Depending on your loan term and cash flow, paying off your home can take as little as a few days (when paid in large amounts of cash) or up to thirty years. While we hope you choose to purchase a Sullivan Brothers Builders home, we wish you nothing but happiness wherever your home is!