Starting on the journey to purchase your very first home is an exhilarating and life-changing experience.
But the road to homeownership can sometimes seem daunting, with many questions, uncertainties, and a maze of paperwork standing between you and your dream home.
That’s where we come in at Edgewater Realty, to guide you through the process and help you unlock the door to your very own home!
We wrote this short blog in order to outline the 8 steps to buying a home in order to equip you with the knowledge needed to navigate the real estate market with confidence.
From understanding your financial readiness to signing on the dotted line, each step will bring you closer to the realization of your homeownership dreams!
- Consultation
- Preapproval and Down Payment Assistance
- Home Search
- Home Showings
- Making the Offer
- Option Period
- Pending
- Closing
- Consultation
The very first step in buying a home begins with talking to a Realtor who can help guide you through the home buying process. We’ll discuss your purchase goals and help come up with a plan and timeline for the rest of these 8 steps.
We will also make important recommendations, such as lenders, inspectors, and home insurance companies who are necessary resources in the buying process.
- Preapproval and Down Payment Assistance
Speaking of lenders, the next step in this process is to get preapproved for financing. You will contact a mortgage lender and fill out their application for financing.
As part of this process, you will also discuss possible down payment assistance (DPA) options with your lender. There are plenty of grants available for first-time home buyers that can help reduce the amount of money you need to bring to closing.
Click here to view our recommended lenders!
- Home Search
Once the lender has reviewed your application and issued a preapproval letter, we will set up your online home search matching your wants and needs (location, size, age, amenities, etc).
We use the data available from HAR (the Houston Association of Realtors) to send the most accurate and up-to-date information on available homes that meet your criteria.
Click here (on a mobile device) to download our exclusive HAR app in order to view available homes for sale as well as premium content not publicly available.
- Home Showings
Once you start to see homes online that you want to see in person, we will schedule private showings to go and tour them in person. This is your opportunity to explore the property, assess its condition, layout, and features, and envision yourself living in the space.
You’ll also get a better feel for the neighborhood and any parks, playgrounds, pools, and other amenities in the area.
- Making the Offer
After you’ve selected a home that you want to make an offer on, we will review all of the terms such as price, option period length, closing date, seller concessions, etc and we’ll write up the best possible offer given what is known about the property and the property situation.
- Option Period
Your offer has been accepted and you are under contract! The first period of time once you go under contract is the option period. This is generally 5-10 days (it’s negotiable).
Some people also refer to this as the “inspection period” because this is when you will hire an inspector to inspect the home. But the reason it is called the option period is because you have the “option” to back out of the contract or attempt to renegotiate the contract for any reason.
You can renegotiate the price, repairs, or any other terms during this period. You can also back out if you find something you don’t like or even if you just change your mind.
- Pending
After all remaining negotiation has taken place during the option period, it’s time for final loan approval. This usually lasts anywhere from 3-5 weeks.
Your lender will continue to request documents from you as needed in order to satisfy all loan requirements. They will also order an appraisal which is used to determine the value of the home.
You also need to shop and order insurance during this time and start making preparations to turn on utilities for the closing date.
One word of advice: Don’t open up any new lines of credit during this time or it could affect your final loan approval.
- Closing
The day is finally here! You’ll do a final walk through of the property, sign the closing paperwork at the title company, and get your keys!
Congrats, you now own a home!
Hopefully, if you were intimidated by this process before reading this blog, you feel much more confident now. Just remember, our job at Edgewater Realty is to be there for you every step of the way!
If you have any questions about the buying process or are ready to begin the buying process, click here to schedule a time for us to chat.
It’s never too early to start discussing your home purchase goals. Let’s embark on this exciting journey together and make your dreams a reality!