Mortgage Basics

8 Steps to Take as a First-Time Homebuyer When Buying a Home

8 Steps to Take as a First-Time Homebuyer When Buying a Home
Written by
  • Alivia Massimillo
| 2 February 2023
Reviewed, 24 February 2023

Table of contents

    Are you a first-time homebuyer trying to navigate the complex world of purchasing a home? It can be intimidating with so much information coming at you from different sources, but the process doesn’t have to be overwhelming. Here are 8 simple steps to take that will help you make an informed decision when purchasing your first home; these tips and guidance can make for a smooth journey ahead!

    1.  Get Pre-Approved for a Mortgage

    When buying a home, getting pre-approved for a mortgage is nothing less than essential. It offers invaluable information, such as the amount of money you can borrow to purchase your home, and it also helps to focus your search on homes within your budget. 

    This is of huge benefit both when it comes to making informed decisions and in saving time by only searching for dwellings that align with equally informed expectations and resources. Mortgage pre-approval is worth considering at the very start of any buying process.

    2.  Determine Your Must-Haves

    When it comes to the home search, it helps to be organized and have a plan of action. Start by creating a list of must-haves which should include qualities like the number of bedrooms and bathrooms desired, preferred flooring, or a priority list of locations that meet your needs. This will help narrow down your options as you go through the process, letting you more easily target homes you’ll want to view in person. Being mindful and selective upfront will save time down the line and increase your chances of finding the perfect dwelling.

    3.  Start Searching for Homes

    Once you’ve determined how much you can realistically afford and what features you want in a home, it’s time to start looking for the perfect fit. You can look up listings online and even use virtual tours to get an idea of the look and feel of a place. You might also contact a reliable real estate agent to help narrow down the options based on your needs and budget. 

    At last, consider stopping by neighborhoods that have caught your eye before you begin your search – it will give you more insights into what type of home would be best suited for your lifestyle.

    4.  Consider Your Financing Options

    Getting pre-approved for a mortgage is an important first step when considering a house, but don’t forget to explore your mortgage interest rates as they impact your monthly payment overall. 

    Reaching out to lenders can give you the details on what’s available, and you can look into factors such as interest rates and repayment terms. Your real estate agent might also know about local programs or groups which offer special incentives for new homeowners. It pays to research before you commit to any loan so that you’re fully informed and comfortable with your decision.

    Pro Top:  First-time homebuyers may take advantage of special funding sources that help with down payments and closing costs. 

    Need help finding a great rate? Start an application with today!

    5.  Make an Offer on a Home

    Making an offer on a home is the next step after you’ve identified the right property. Your real estate agent will be important in advising you on the ideal offer price. Considerations include assessing the current market value and any upgrades that might need to be made to acquire the desired result. It’s wise to follow their guidance as they’re more familiar with local laws and regulations, so you can effectively make your best offer without overpaying or settling for less than your first choice home.

    6.  Get a Home Inspection

    Once your offer to purchase a house has been accepted, it is important to arrange a home inspection as soon as possible. A qualified professional will thoroughly examine the property to identify any structural, plumbing, or electrical problems that may exist. In many cases, these issues are hidden and can be expensive to repair or pose safety risks if left unnoticed. Before signing on the dotted line, ensure you understand the condition of the property you’re about to purchase. A comprehensive home inspection is an essential step in securing a property free from surprises!

    7.  Negotiate Any Repairs That Are Needed

    When buying a home, you will always want to ensure you get a good inspection to avoid any major problems when signing the purchase agreement. It is in both party’s best interests; the seller will be able to move on with the sale, and you, as the buyer, can rest assured that all necessary repairs have been made. Fortunately, if any major problems show up during the inspection process, you may be able to work out a deal with the seller. 

    This could involve them making some repairs before you officially buy the house. This is why inspections are helpful and important steps of the buying process – they allow both sides to come together and iron out details that create mutually beneficial outcomes.

    8.  Close on the Home and Move In!

    Before you can move into your new home, there are a few more steps. All necessary repairs must be made first, and all paperwork for personalizing the property and financing should be finalized. Thankfully all that hard work is now done, and it’s time to close on your new house. Once the process is complete, you can finally begin moving in and enjoy being a homeowner. Congratulations!

    Wrapping it up

    Buying your first home is an exciting milestone, but it’s also a big decision that can be daunting and overwhelming. Use these tips as a guide to help you navigate through the process and make an informed decision. With compare mortgages, you can find the best rate for your first home today and get started on your journey of homeownership!