The Home Buying Process

12 Steps to Buying a Home

Step 1: RESEARCH

Do you already know where you want to buy? Have you decided whether you prefer a condo, townhome, or single-family home? What features do you like or dislike? What's currently available on the market?

If you've answered "no" to any of these questions, now is the perfect time to begin your research. As you explore homes that catch your interest, pay attention to changes in asking prices. This can provide valuable insights into housing trends in specific neighborhoods, which will be beneficial when it comes time to make an offer.

Step 2: DECIDE ON YOUR BUDGET

Notice we said to decide on your budget—not to determine how much the mortgage company will lend you. Often, a mortgage company will pre-approve you for more than you’re comfortable spending. That’s why it’s essential to determine the monthly payment you’re comfortable with before talking to a lender.

You can start calculating how much you can afford online using various mortgage calculators to help determine an affordable monthly payment. Remember to factor in money for a down payment, closing costs, fees (such as appraisal and inspection), and the costs of remodelling or furniture. Remember, you don’t always have to put down 20 percent as your parents once did—there are loans available with little to no down payment.

Creating a comprehensive household budget and considering any new expenses that will arise once you move into your new home is crucial. If you’ve been living in an apartment or with roommates, you might overlook costs like garbage, water, or HOA fees, which can easily exceed your budget. An experienced home loan expert can help you understand all your loan options, closing costs, and other fees.

Step 3: GET PREQUALIFIED

Just because you believe you can afford a certain monthly payment doesn’t mean the mortgage company will agree. They might approve you for a higher amount than you’re comfortable with, or conversely, they might approve you for a lower amount or deny your mortgage application altogether. Factors such as insufficient time at a job, poor credit, past bankruptcies, or other financial issues can complicate securing a mortgage.

Before you get your heart set on a home, consult with a mortgage professional to determine what amount you can qualify for. An experienced home loan expert can help you understand all your loan options, closing costs, and other fees. Additionally, being prequalified for a loan can give you an advantage when making an offer, as some sellers won’t consider offers from buyers who aren’t prequalified.

Step 4: CHOOSE A REAL ESTATE AGENT

When selecting a real estate agent, it's essential to partner with a team that not only meets your needs but exceeds your expectations. The Bryce Hansen Team offers unparalleled expertise, dedication, and personalized service to guide you through every step of your home-buying journey. Backed by years of experience and a deep understanding of the local market, we pride ourselves on delivering exceptional results for our clients. With a focus on clear communication, integrity, and professionalism, we strive to make the process as smooth and stress-free as possible. By choosing the Bryce Hansen Team, you gain access to a network of trusted professionals, innovative marketing strategies, and expert negotiation skills that set us apart in the industry. Let us help you find your dream home and make your real estate goals a reality.

Step 5: FIND THE RIGHT HOME

This step should be the most enjoyable part of the entire process (other than moving in!). We will arrange showings of homes you’re interested in that fit within your price range. During these showings, take notes about what you like and don’t like, and pay attention to details. Test light switches, open and close doors, and run the faucets in various rooms to ensure everything works. But don’t limit your inspection to just the home itself. Take the time to explore the neighborhood as well. Keep an eye on traffic patterns at different times of the day, assess the parking situation, and note the proximity to necessities like schools and grocery stores. Additionally, envision yourself living in the space. Imagine your daily routines and whether the layout and features of the home align with your lifestyle. Don’t hesitate to ask questions about the property or the neighborhood, and trust your instincts. If something doesn’t feel right, it’s worth investigating further. 

Step 6: MAKE AN OFFER

Now that you've found the home you desire, it's time to make an offer. Sellers often list their homes slightly higher, anticipating negotiation. Starting around five percent below the asking price is a reasonable approach. Your real estate agent can provide a list of comparable homes to help you assess the market value. Keep in mind that your offer isn't set in stone—the seller may propose a counteroffer, to which you can respond. However, aim to avoid excessive back-and-forth negotiations. Ultimately, finding a middle ground is essential. Once a price is agreed upon, you'll make a deposit, which is securely held in a trust account by your agent's brokerage or lawyer until the sale is finalized.

Step 7: HAVE THE HOME INSPECTED

Typically, your offer will depend on a home inspection to identify any significant structural damage or necessary repairs. We'll assist you in arranging this inspection, which can be scheduled shortly after making your offer. If no major issues arise, the process proceeds to step eight. However, if significant problems are found, you have options. You can renegotiate your offer based on the repairs needed or withdraw it altogether.

Step 8: SELECT YOUR LOAN

Let's turn your dream of homeownership into a reality! At The Bryce Hansen Team, we specialize in guiding you through the mortgage approval process with ease and efficiency. Our experienced team is dedicated to finding the perfect mortgage specialists who will align with you and your needs. From pre-approval to closing, we'll be with you every step of the way, ensuring a smooth and stress-free experience. Let's work together to get your mortgage approved and unlock the door to your new home!

Step 9: GET A HOME APPRAISAL

Your lender will have your new home appraised so they have their independent value of it. The appraisal ensures that all parties involved pay a fair price for the house.

Step 10: SUBJECT REMOVALS

Subject removal is a critical stage in the home buying process where the buyer's offer becomes firm and binding. During this period, typically outlined in the purchase agreement, the buyer has the opportunity to fulfill certain conditions or "subjects" specified in the contract. Common subjects may include home inspections, financing approval, or selling the buyer's existing property. Once these conditions are met to the buyer's satisfaction, they remove the subjects, solidifying their commitment to purchasing the property. Subject removal signifies a significant milestone in the transaction, bringing both parties closer to finalizing the sale. It's essential for buyers to carefully review and address any subjects within the specified timeframe to ensure a smooth and successful closing.

Step 11: CLOSE ON YOUR NEW HOME

Closing on your new home is the exciting final step in buying your dream property. It's when all the paperwork is signed, money changes hands, and you officially become the homeowner. It's a time to celebrate and start making memories in your new place. Our team is here to make sure everything goes smoothly. We'll help you through every part of the process, ensuring all the details are covered. Congratulations on reaching this milestone—welcome home

Step 12: MOVE IN DAY!

Now that you've secured your mortgage, closed the deal, and it's time to move in! Whether you opt for professional movers or enlist the help of friends, the choice is yours, based on your budget and the amount of belongings you have. Either way, with the support of the Bryce Hansen Team, the home-buying process is complete! It's time to unpack and start enjoying your new home. Buying your first home doesn't have to be overwhelming if you're well-prepared and know what steps to take and when to take them.