Home Buying Made Easy: 8 Step Guide

Home Buying Made Easy: 8 Step Guide

Home Buying Made Easy: 8 Step Guide

Every fist-time home buyer needs an easy home buying guide to make the ordeal just a little bit simpler from the start. A quick and easy home buying guide for any first-home shopper should contain expert advice and a big-picture overview of the whole process, from start to finish. The following are eight tried-and-true steps we put together to help you buy your first home smoothly and easily.
1. Prepare Your Credit

Once you have decided that buying a home is the best move for you and your family, it's time to get busy. Months before shopping for homes and talking to agents, begin the process of improving your credit, according to CNN Money. Make sure there are no errors on your report, and pay down your credit card balances. A few more points on your score can mean a slightly lower interest rate on your mortgage. Over the life of a 30-year loan, that can add up to tens of thousands of dollars in savings.

2. Shop for Financing

Many first-time buyers try to shop for houses before shopping for loans, but this can often lead to heartache when you find that the house you love is beyond your price range. It's much better to shop for a mortgage you can afford first. HUD advises, "Different lenders may quote you different prices, so you should contact several lenders to make sure you’re getting the best price." You can also find a reputable mortgage broker to help you find the best deals available to you. Make sure you have a pre-approval letter, not a pre-qualification. A pre-approval means the bank is ready to lend you a certain amount of money, while a pre-qualification merely means the bank is willing to consider it.

3. Find a Professional Agent

For a decision as big and expensive as buying your first home, you need the help of a professional navigator. You may have friends or relatives who can recommend a great real estate agent or broker. Gerri Willis, author of Home Rich, says to look for someone who works full time, is active in the neighborhood where you want to buy and has made at least a few sales each year for the past eight years or more.

4. Know Your Ideal House

Once you know your price range and have a rough idea of the neighborhoods where you would like to shop, lay out exactly what you need in your home, both now and five to ten years from now. Consider any additional children you may have, your cooking preferences, your need for a private yard, your desire to be close to work, etc. Then decide which preferences you are willing to let go in favor of the ones that matter most. "For instance, would you trade fewer bedrooms for a larger kitchen? A longer commute for a bigger lot and lower cost?" says Realtor.com.

5. Shop for Houses

These days, most home buyers, especially women, do their primary shopping on the Internet, according to Willis. This can be a great way to find out how much house you can get for your price range. You can also look up ratings on local schools for each home that fits your parameters. The quality of local schools has a lot of bearing on your ability to sell the home in the future, so consider this criterion carefully. Once you find something you like, either through the Internet or through your agent, check it out more than once. Drive by, morning, noon and night, to see how the neighborhood changes throughout the day. A house that seems quiet in the morning could become a traffic nightmare by night.

6. Hire an Inspector

This is probably the most important step in the process, according to Willis. Yet it's the one many home buyers tend to rush or ignore. Willis recommends that you hire your own inspector, independent of your agent. Make sure you show up to hear all the inspector has to say about necessary repairs, utility shut-offs, pest problems and roofing issues. That way, either you can walk away from a money pit or you can purchase the house with a complete picture of what it needs.

7. Make an Offer

This is when a good agent or broker comes in very, very handy, as the bidding will take research and finesse. CNN Money advises, "Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months." It might be tempting to bid super low and work up, but this can offend sellers. The best bet is usually to offer a fair price, considering local trends. Start on the low end of the fair range and work up if you must.

8. Close the Deal

Some experts recommend a lawyer for the closing paperwork. A few states require legal help at this point, but in simple cases that do not involve probate or foreclosure, a real estate agent and mortgage broker are probably all the help you need. Be prepared to sign and pass around mountains of papers. You will also need to line up homeowners insurance. Your lender may offer you homeowners insurance, but you can often get better rates and coverage from an independent insurance agent who can comparison-shop for you at no charge.

There may be a few days of uncertainty and doubt when you wonder if escrow will ever close and if you were crazy to get into this mess in the first place. But with any luck, you will get a phone call and a set of keys before you know it. Happy home buying

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