First Time Home Buyers Guide!
This is a course you don't take in school! So how do you learn the ins and outs of a first time home purchase? You find a teacher aka an awesome Realtor...(like me) to help you, educate you, guide you and get you EXCITED about what will most likely be the largest and most emotional purchase of your life! If you have an experienced real estate agent by your side, this process becomes fun and exciting, and not overwhelming and stressful like you might think it would be.
So you are ready to buy a home! Well first things first. Find an experienced Realtor. From the very beginning you will have so many questions, they can get you started off and answer all those questions for you. Before you start searching for your dream home your real estate agent will refer you a few Lender options because you need to get pre-qualified, that will determine what you can afford.
A common misconception people have is they think they need a huge down payment of 20% in order to buy a home, that's not true! It can be as little as 3-3.5% of the sale price, which is attainable! Also a few things to keep in mind when thinking about buying a home, is debt to income ratio, credit score, and how long you've been in your current field of work, all these things will affect the loan process. So hop on a phone call with a lender, talk in person or apply online. I have my buyers call because you may have questions and they can answer them all on the spot and pre-qualify you right then and there as well. And just like that... You are pre-qualified and should have a good idea of what you can afford! Thats the first step, later you will need to supply your lender with the necessary documentation so they can do a more extensive check on your finances and credit rating, this will get you pre-approved.
Time to get a realistic "must have list" and a "wish list" together. Those are two very different lists and your agent should set realistic expectations for you. You know that saying under promise and over deliver? Well it works well in my field of work! Unless your budget is unlimited you will probably have to make some compromises. Keep in mind the most important items and the things that can't be changed, like location! Don't sweat the small stuff, a little Sweat Equity will go a long way! You know I love a good fixer upper!
Now you get to become a real life House Hunter! It's a lot different than what you see on HGTV you might be on the hunt for as little as one day to many months depends on the market you live in. Once you've found that perfect home here is a basic idea of what to expect.
Submit an offer: You and your agent will come up with a sale price and you will submit that. There may be a counter offer or two (or more) depending on the situation. Once you have an accepted offer, you are officially Under Contract! There are many contingencies that could come with a Purchase and Sale Agreement, the most common contingencies are inspection, financing and appraisal.
Home inspection. In some areas this may be a simple home inspection, but you might want to add on additional inspections, like radon, termite, mold or maybe there is a pool on the property. Just make sure all the necessary areas and items are inspected within your allowed inspection period. Keep in mind all deadlines through out the process. After the inspection you are usually able to request items to be repaired or replaced but not always.
Appraisal. Most likely an appraisal will be preformed, meaning you won't pay more for the home than it's worth, (Lenders won't loan more anyway) once you've made it through all of your contingencies you will be on your way to the closing table!
If you have any questions leave me a comment and if you are thinking about buying in Nashville or the surrounding areas lets connect! Alana LeBlanc Black Lion Realty email: LexAndAlana@gmail.com Good Luck and Happy House Hunting!