First-time home buyer? No problem. Here is everything you need to know. With the expertise of our Realtor, Mallory Morgan, we’ve laid out the home buying process in a handful of steps.
1. As a buyer, have your first conversation with a lender to figure out not only what you are pre-approved for, but also what you are comfortable paying as a monthly mortgage note. (Hint: A lot of people wait to call the lender, but the lender will tell you how to prepare. Even if you are looking to buy a year from now, finding a reputable local lender is the biggest most important step of whole process. All lenders are not created equal. Our Craft Realtors can help recommend a lender for your situation. (Hint: Your property taxes and homeowner’s insurance (HOI) will be a part of your monthly payment.)
2. Once you figure out what your shopping budget is, grab a Craft Realtor and start shopping! Shopping online is fun too. Realtor.com syncs to the Multiple Listing Service every 15 minutes. (Hint: buyers do not pay Realtor fees, sellers do.)
3. Once you fall in love with a house, rely on the expertise of your Realtor to negotiate your offer! Most offers are accompanied by a deposit. The deposit money goes towards the purchase of the home. It could be a little as $500 and up to $10,000. The deposit is usually proportional to the purchase price.
4. Once your offer is accepted, you are under contract and your inspection period begins. (Hint: The inspection period is usually between 10-14 days. You can use this time to hire an inspector. The cost of an inspection is usually between $350.00 and $650.00 depending on square footage. This also considered your walkaway period if you decide to do so.)
5. After the inspection is complete, you can look over the report with your Realtor and ask for any repairs to be done. Your Realtor will help you negotiate those repairs with the seller.
6. The buyer has the final say on the inspection and on the satisfaction of the repairs and negotiations. Once those negotiations are done, your inspection period is over.
7. If you are financing your home, your lender will order an appraisal which will be around $500.00. An appraiser is a neutral party licensee by the state to determine the true value of the home. So, you can be confident the home is worth the amount you are paying for.
8. Next step, your lender will order title work to be done. The title work will give you confidence that whenever you close on the house you will own it free and clear without any liens. The Title work fees will be grouped into your closing costs.
9. Now that you have crossed all of those hurdles, your lender is working diligently to get you to the closing table! Make sure you get your lender any documents or financial records that they request.
10. Now you are at the finish line and your lender has given you clear to close! You schedule your closing with your Realtor, sign your act of sale, get your keys, and start packing!
Every real estate transaction looks different and this is a guide to help you understand the most basic steps. You can rely on the Craft team to point you in the right direction. Forward this newsletter to someone who will be a first-time home buyer soon!
Mallory Morgan, Realtor
9114 Jefferson Hwy Baton Rouge, LA 70809