Starting the Homebuying Journey
My name is Hayley, and I recently became a first time homebuyer with my partner! During the spring lockdown for COVID-19, we began discussing our lease ending in September and what we should do next. That’s when we thought, “what if we bought a house?” We hated our current rental situation, and the most common advice we heard was that buying is an investment, while renting is essentially paying for your landlord’s property.
Leveraging Real Estate Expertise
I’m privileged to work at Keller Williams with a team of skilled and knowledgeable individuals who know real estate inside out. When I mentioned our idea of purchasing our first home, they were thrilled and supportive. However, I realized not everyone has access to such expertise. Here’s a summarized guide of what to expect as a first time homebuyer.
Finding the Right Lender
One of the first steps we took was contacting a lender to see what we could afford. We learned that we weren’t limited to our personal bank’s financial services; we could choose any lender. When shopping for a lender, consider:
- The responsiveness of the lender
- The possible interest rate they could offer
- Associated fees with their servicesFinancial Readiness
Choosing a lender involves them reviewing your financials, job history, and credit history. Once you’re deemed financially ready, your lender will explain different ways to purchase a home: Cash, Conventional, FHA, VA Loan Financing, or USDA Loans.
Selecting the Best Realtor
Finding a realtor is crucial. This person will represent your best interests throughout the process. When looking for a realtor, decide on the area you’d like to live in. Most areas have a realtor who dominates that market. Check reviews and interview a few realtors to find someone you trust.
Finding a House
The Search Process
This part can be emotionally draining. After finalizing our financial situation, we began searching for homes. Over two months, we realized our price range was competitive in Central Florida. We adjusted our loan amount to give us an edge but still faced tough competition.
Making an Offer
As our deadline approached, we considered renting again. But then, we found a home we loved, scheduled a showing, and made an offer. We won the bid and went under contract.
Under Contract: Steps to Closing
Being under contract involves several steps before closing:
- Escrow
- Inspections
- Appraisal
- Financing
- Closing
Escrow
Escrow is a “good faith” deposit showing the seller you’re serious about purchasing. This deposit is part of your total payment for the house.
Inspections
Choose a house inspector to ensure the home is in good condition. If the inspection reveals significant issues, you may be able to back out of the contract without losing your escrow.
Appraisal
An appraiser evaluates the home’s value based on comparable prices in the area. If the appraisal is lower than the listing price, negotiations may be necessary.
Financing
Ensure all your documents are submitted to the lender. Missing documents can delay the process. Get final numbers from your loan officer and title company, and wire the remaining funds on time.
Closing Day
Congratulations! You’ve closed on your first home. Transfer utilities, change your address with the DMV and USPS, and clean your new home.
If you have any questions about buying or selling your home, please feel free to reach out at (407) 564-2758. We’re more than happy to help you in your real estate ventures.
