First-time home buyer? Reviewing the purchasing process!

Buying your first home is an exciting milestone, but it’s also a major experience filled with questions and complexities. If you’re not sure where to start, you’re not alone! To help you navigate this journey, here’s a basic walkthrough of the home purchasing process, from start to finish.

Get pre-approved for a mortgage

Getting pre-approved for a mortgage shows sellers that you’re a serious buyer and gives you a clear idea of how much you can borrow. During the pre-approval process, your potential lender evaluates your current financial situation to determine your possible mortgage eligibility. It is not a guarantee or a final approval! However, it does help you learn where you stand, and if you need to make any improvements. You will need to submit a variety of documents and information related to your finances, such as proof of income, bank statements, and details about any debts. Take some time to gather this information now, so you have it handy when needed. This will also help you stay organized when it’s time to secure your final approval in the future.

Find a real estate agent

A knowledgeable real estate agent can be an invaluable resource during the purchasing process. They can help you find properties that match your criteria, negotiate offers, and navigate the closing process. What should you look for in a real estate agent? Naturally, one of your biggest focuses should be on experience. This isn’t just about the number of years they have worked in the market, either! Pay attention to their experience working with first-time home buyers in your area. You can also ask for references from past clients to make sure they are a good fit! It’s important to choose someone you feel comfortable with and who understands your needs and preferences.

Whatever you do, don’t try to go through the purchasing process without using a real estate agent. Some buyers feel like they can handle the process alone, but more often than not, this costs them valuable time, money, and effort. Sellers want to work with a buyer who has a professional on their side. Plus, your agent can help you navigate the market and provide insight you may not have on your own. Finding a solid agent is always worth it!

Start house hunting

Now comes the fun part—house hunting! There are a few things to make the process smoother and more efficient. First, you should define your priorities, which means separating your must-haves from your nice-to-haves. Make a list of your non-negotiable features, such as the number of bedrooms, bathrooms, or a specific neighbourhood you want to live in. These will be the things you don’t want to budge on during your housing search. Then, identify features that are desirable but not essential, such as a backyard, updated kitchen, or proximity to work. As a first-time buyer, it’s important to focus on the essentials first! 

Once you find some homes you are interested in, it’s time to visit them. This means attending open houses or viewing the property with your agent. Organization is key here! Take notes and photos during each visit to help you remember the details of each property. Don’t hesitate to ask the seller or agent about the home’s history, condition, and any potential issues. You should also look into the neighbourhood you are exploring. Research crime rates and safety statistics, consider nearby amenities, and check for any upcoming developments or zoning changes that might affect the area. Your agent should be able to help you with this too!

Make an offer

When you find a home you love, it’s time to make an offer. Your real estate agent will help you craft a competitive offer based on market conditions and the property’s value. They will evaluate the home’s market value, your budget, and costs of homes in the surrounding area. These items will help you determine where the property, and your buying power, fit into the market. It’s important to make a competitive offer without spending more than you need to. Your offer will also likely include a couple of conditions. These include a home inspection, appraisal, and financing contingencies. All of these are meant to ensure the home is in good condition, and that you won’t be on the hook for the purchase if any conditions aren’t met. Most sellers will understand these conditions and will be happy to work with you if they feel you are a good fit.

Finalize your mortgage

Once a seller accepts your offer, you are officially on your way to becoming a home owner! Now, it’s time to finalize your mortgage. This means working with your mortgage broker to find the right lender, mortgage product, and interest rate. Your broker will help you shop around to find your perfect match! This is when you will provide your financial information once again for final approval. Since the market can move fast, it’s important to have these ready to go ahead of time. 

The final step in the home buying process is the closing. This is when you’ll sign the necessary documents, pay closing costs, and receive the keys to your new home. You will pay your down payment and closing costs, sign off on the final documents, and you’ll receive the keys to your new home.

Congratulations! You’re now a home owner. While the purchasing process can seem overwhelming, taking it step by step and working with experienced professionals can make it manageable and rewarding. If you have any questions or need further assistance, don’t hesitate to reach out to your mortgage broker. We can give you the guidance you need to navigate the market with ease.

If you have any questions about your mortgage, give us a call at Centum Home Lenders! You can reach us at 506-854-6847, or get in touch with us here.