Before, During, And After Buying Your First Home: A Complete Guide

Buying a home can be deeply overwhelming, especially when it’s your first time. Perhaps you’re unsure how or where to start, and you may be tempted to go ahead and pick the first house you find or continue renting. One study finds that 38% of first-time homebuyers see the entire home-buying process to be more tedious and lengthier than they initially expected. The same study also shows that 44% of first-time homebuyers feel anxious and nervous throughout the buying process, while 33% would even shed some tears.

However, don’t let those numbers scare you. With intensive research and proper planning, you can buy your first home successfully and as smoothly as possible, without any regrets. Let this guide show you the necessary steps to take before, during, and after the home-buying process.

Before Buying Your First Home  

1. Find Out If You’re Finally Ready To Invest In Your Own Home

Before you jump into house hunting or visiting open houses, analyze yourself and see if you’re finally ready to go through the house-buying process. Remember that this process isn’t only about being financially prepared, but you also need to be emotionally and psychologically ready to commit to full-time homeownership. Unlike renting, wherein you can move anytime and leave the house maintenance to the landlords, being a homeowner means you need to be responsible for everything.

Here are some factors to check to help you determine whether you’re ready to buy a house or not just yet:

• You have a solid credit score.
• You have no debt, or your existing debt is manageable.
• You have enough money for the down payment.
• You have enough budget to keep up with house maintenance.
• You’re going through a significant life change that requires you to buy a house (e.g., marriage, divorce, growing family, new job).
• Your lifestyle and job are stable.

So, assess yourself and see if you can fit into these factors.

2. Get An Expert To Help You Go Through The Home-Buying Process

Once you’ve finally decided to buy a house, the next step is to get an expert to help you throughout the buying process. As stated by the National Association of Realtors, 87% of homebuyers prefer to purchase their homes with a real estate agent because employing one can help make the buying process easier. Because they already have several years of experience, they can help negotiate the buying process, including completing paperwork and getting a loan.

They can also protect you from making possible mistakes that you might encounter when purchasing a house. So, before searching for homes for sale, you can first search for ‘realtors near me,’ and find a real estate agent to help you purchase a house in a particular state or location.

3. Decide On The Type Of Home That Fits Your Needs

For an easier home search, it’s ideal to know the type of home you’d like by asking yourself the following:

• Are you moving alone?
• Are you searching for a home fit for you and your spouse?
• Will you be moving with a big family?

Preferably, choose a home that fits your homeownership goals.

Furthermore, you must also determine the specific features you’d like to find in your new home. Perhaps you’re looking for a home with two to three bedrooms and a huge kitchen layout suitable for your big family. Or, maybe you only need a small house with a spacious backyard for your gardening hobby. Remember to retain flexibility with your desires and specifics to avoid disappointment. But don’t worry, as your real estate agent can also help you search for a home that will satisfy your specific requirements and desires.

4. Get Preapproved For A Loan Or The Size of Mortgage You Qualify For

It’s recommended to have your personal finances in order before you apply for a mortgage loan. So, before you hunt for houses for sale and place an offer, ensure you get preapproved for a mortgage loan first. Most home sellers won’t entertain homebuyers and their bids when they can’t present their mortgage preapproval.

Generally, a good credit score, an impressive history of paying your bills and debts on time, and a debt-to-income ratio of 43% will help you qualify for a home loan. Once you’ve met these, you can apply to your chosen lender and wait for them to verify the financial information and data you’ve provided.

It’s also recommended that you choose a mortgage lender to help decide the best loan type or mortgage size that fits your need. Usually, they’ll check your current debt, monthly income, credit score, and savings to determine the best loan type for you. So, look for some lenders in your area and compare their interest rates and fees. Then, you can submit your mortgage application, along with the required supporting documents, to verify your declared income and debt.

5. Make Sure You Have Enough Financial Savings

After you’ve qualified and got preapproved for a loan, it’s still crucial that you have enough financial savings on hand or in your bank. You’ll need to use this for the down payment for the house. The amount you’ll need to prepare for the down payment will depend on your mortgage lending company.

6. Determine Your Budget

Like how you shop for other things, you must also set a fixed budget for your home purchase. Your budget will depend on the size of your mortgage and the amount of your down payment. However, remember that just because you got preapproved for a USD$500,000 loan doesn’t mean you should create a budget to buy a house that costs exactly USD$500,000. Ideally, you must leave enough ratio for other expenses attached to buying a house, such as property taxes and maintenance expenses.

During The Buying Process 

At this point, you’ve already finalized your budget, your chosen real estate agent, and the kind of home you’re looking to purchase. It’s time to dive into the actual home-buying process and see how you can get through it as stress-free and smooth as possible.

7. Find A Home

This is probably among the most exciting parts of the home-buying process that many buyers look forward to in their journey. Yet ensure you’ve completed the first steps above to have a smooth-sailing home search.

Thanks to the internet, you can start searching for your ‘perfect house’ online and browse for houses on sale on the online market. However, while the internet has made home searching easier and faster, don’t rely heavily on house listings online as it can also show some information that may not be true or is unreliable. Remember to use popular and reliable real estate websites when browsing for houses.

Moreover, don’t forget to include your real estate agent when looking for your perfect home. They’re skillful at searching for houses and have connections and networks to help them find houses that fit your budget, specific needs, and requirements.

As you browse for houses online and from your agent’s suggestions, you can list the homes you plan to check personally during the open house. Once you’re heading for various open houses, don’t forget to take your real estate agent with you. Real estate agents have seen thousands of houses for sale in the past, so they can quickly point out potential house issues the moment they walk into the open house with you.

When you’ve found a house that has met all or most of your criteria, your real estate agent will help you deal with and negotiate offers with the seller’s agent.

8. Make An Offer

One of the biggest advantages of hiring a real estate agent when purchasing a house is that they can help you make an offer and handle negotiations without any emotional attachment.

Suppose you’ve found the perfect house with all the rooms and layout you prefer. However, you got sidetracked by a small issue on the roof (i.e., it has one or two missing shingles). Hence, you insisted that the seller lowers the price offer and do some minor repairs on the roof, but they aren’t open to your suggestions.

When you have a real estate agent, they can deal and negotiate on your behalf in the most professional way and without getting overly emotionally invested. If the seller doesn’t want to do the roof repairs, the agent will handle that part and make sure you and the seller can adjust and settle at an offer agreeable to both parties. Real estate agents are skilled in taking the heat during difficult negotiations and ensure you get the best out of the offer that fits your budget.

9. Perform A Thorough Home Inspection

Before finalizing the offer, ensure you and your real estate agent perform a thorough home inspection of the prospective house. Even if its exterior appearance seems flawless or its pictures on the website are too good to be true, you need your agent’s expert eye to check your potential home’s quality and overall condition.

You must also check if the house has any serious defects, problems, or pest infestation that could jeopardize your safety, which the seller didn’t disclose. In that case, you can revoke your offer and get the payment back. If you still want to keep the house, you or the agent can negotiate with the seller to have the repairs done and have a discounted price for the house.

Besides the home’s condition, you must also take time to check the house’s location or the neighborhood/community surrounding it. Perhaps you’ve noticed something the seller failed to mention (e.g., long drives to school or public establishments, constant heavy traffic). Although these factors aren’t directly related to the house you’re planning to purchase, they can still influence your buying decision.

10. Close The Deal Or Move On

If you and your agent are able to settle a deal with the seller and you don’t see any significant problems with the house, you may now close the deal. At this stage, you’ll be signing and completing tons of paperwork, typically lasting for 30-45 days. Don’t worry, as your real estate agent will guide you throughout this process, so you don’t miss anything and fully understand the agreed terms and conditions.

On the other hand, if you and the seller fail to agree on a specific price or you detect some major issues with the house, it may be best to let go of that house and find another one elsewhere. Although this means a longer home-buying process, it may be better than settling for less and dealing with costly house repairs and replacements in the future.

After Buying Your New Home And Becoming A New Homeowner

Congratulations! You’re now officially a homeowner. You’ve signed the homeownership papers and hired professional movers to help you settle into your new home. However, the journey doesn’t stop there. Here are additional tips to help you fully settle into your new life as a homeowner and make this homeownership safe, secure, and fun:

11. Continue Saving For The House Maintenance

As mentioned earlier, owning a home means you must be ready for your house’s upkeep and maintenance expenses. Some homeownership responsibilities you must continue saving up for may include:

• Your mortgage payment
• Home repairs/replacements (e.g., rain gutters, entire home lock replacement, roof repairs)
• Other housing-related costs (e.g., private mortgage insurance, property taxes, homeowners insurance, etc.)

Having enough savings will ensure you don’t get caught off-guard in case these expenses arise.

12. Review Or Buy A Home Warranty

If your newly bought house includes some major systems or appliances, you may receive a home warranty from the seller to ensure you don’t get to deal with a broken or damaged home appliance. So, if you received one, take your time to review the specifics so you’ll be aware of which appliances are covered by it and how you can file a claim. Meanwhile, if the seller didn’t provide a home warranty, consider buying one after the home purchase. Home warranties are created to protect your appliances and systems from damage and breakdowns likely to happen over time.

13. Connect The Utilities

It’s typically recommended that you connect or transfer your utilities before you move into your new home. This way, you and your family can have a smoother move-in process, and the house can function right away when the necessities or utilities are already ready for use.

14. Create A Maintenance To-Do List From The Inspection Report

If you detected any minor or major issues that you flagged on the home inspection report but weren’t resolved by the seller, you can retrieve this report and use this as a reference for your new home’s maintenance.

For example, if there’s one missing shingle on the roof, include it in your maintenance to-do list and ensure to have it repaired immediately before ultimately settling into your new home. Leaving such a minor issue for later can only worsen the problem and lead to even costlier repairs or replacements. Lastly, remember to conduct the same maintenance and repairs now and then. Regular maintenance is the key to preserving your home in its best shape; it also ensures you get a higher sale price if you plan to resell it sometime in the future.

The Bottom Line

Buying a house involves intensive planning, research, preparation, and work. When done alone, you might need to double up your time and effort to find your dream home. However, if you work with a real estate agent, they’ll help you every step until you finally settle and move into your new home.