Home-Buying 101: A Step-by-Step Guide to Buying Your First Home
Welcome, friends, to Home-Buying 101. If you’ve been thinking about buying a home, but you’re feeling overwhelmed and not sure where to start, you are in the right place. It’s super normal to feel a little confused, a little nervous, and a little unsure if this is actually doable for you.
Buying a home is a whole lotta new – a new process, with new people, on a new timeline, with new rules. The good news is, you don’t have to do it alone. I’m here to help break down the process in a way that actually makes sense, answer common questions, and clarify not just where to start, but where you’re headed.
Because honestly, this experience can (and should) be super exciting, and maybe even a little fun. So grab your favorite beverage, curl up on the couch, and let’s get to learning.
Step 1: Get Clear on Your Goals
An often overlooked, but incredibly important first step, is to understand your why. Do you want to put down roots in a city you love? Do you want to build community and contribute to your neighborhood? Do you want to renovate your first home? Do you want to stop paying rent and start investing? Do you want to create a multi-generational living space?
There are an infinite number of whys, and no wrong answers. The choice to buy a home is deeply individual, and really shapes the overall process. Your goals influence everything from your finances to the house hunting process, as well as every decision along the way. Being clear on your why gives you a foundation to always come back to. It’s buying with clarity and intention, and feeling confident no matter what comes your way.
Pro Tip: set aside some time to journal, mood board, or explore your goals in any way that works for you. If you’re buying with a partner, friend, family member, or anyone else, include them too. This is the time where you really get to dream, so have fun with it.
Step 2: Find the Right Agent (and Build Your Team)
The next step is to assemble a real estate team that is going to be in your corner – starting with finding a real estate agent that truly has your back (hi, that’s me!).
While Home-Buying 101 will provide a solid understanding of the overall process, your agent will be your hands-on guide for your unique home-buying journey. They will get to know you and your goals, lead the house-hunting process, educate you on the market and ins and outs of different homes, write a competitive offer and drive negotiations, and celebrate your wins every step of the way.
Whether it’s me, or someone else, it’s important to make sure that your agent:
Cares about your goals, understands you, and makes you feel comfortable
Has a deep knowledge of the local market, neighborhoods, and communities
Is ready to go to bat for you when it’s time to make an offer and negotiate
Is communicative, always available, and takes the time to educate you
Is well-connected with vendors and local resources
A good agent will actually connect you with the rest of your real estate team, should you need any support in that area. They will have a good lender, inspector, and vendors on speed dial, and be ready to provide those resources as you need them throughout the process.
Pro Tip: it’s never too early to connect with an agent, and the right agent will never rush you to make moves before you want to. Some clients reach out when they know they're ready, and others reach out when they first start exploring to figure out if they are ready. These conversations are meant to be informative, pressure-free, and empower you to take next steps on the timeline that feels right for you.
Step 3: Get Pre-Approved and Start the Search
I know it can be tempting to hop on Zillow or start going to open houses, but you can’t make any real moves until you have a clear idea of your budget. During the pre-approval process you’ll get connected with a lender who will deep-dive into your finances, credit, and employment history, and let you know how much of a loan you’re approved for. Working with a lender can be a little daunting for some, but think of this step as a way to ensure you’re making a solid decision not just for your goals, but also for your finances.
Pro Tip: sometimes, you’ll get approved for more than you actually feel comfortable spending. It’s important to bring it back to your goals, and understand what monthly payment actually works for you.
That pre-approval is essentially your golden ticket to start the house-hunting process, which is most people’s favorite part – I know it’s mine! Your real estate agent will lead this search with your goals at the fore-front, making sure to educate you every step of the way.
Pro Tip: when looking at houses, try to spend time thinking about both emotional and rational pieces. For instance, understanding how you want home to feel, but also how you need the home to function. It’s easy to get caught up in one or the other, so bringing it back to your why always helps.
Step 4: Offer, Inspection, and Appraisal
Once you find a house that feels like home, it’s time to create a stand-out offer. Your agent will have a really good understanding of the market and desirability of the house. They’ll be able to help you pick a number that doesn’t just work for you, but stands out to the sellers. There may be a bit of back and forth at the stage, but your agent will lead the way.
From there, you’ll move into inspection and appraisal.
Inspections help educate you on the exact state of the house – the good and the bad. You’ll work directly with a trusted inspector, likely recommended by your agent, who will write up a long and detailed report. If there is anything that comes up on inspection that is cause for concern, your agent will help figure out what’s next – such as a repair credit, or even having the sellers take responsibility for repairs.
Appraisals are the best way to show you and your lender that the purchase is a sound investment, and prevent over-paying. An appraiser will assess the home’s condition, size, and features, as well as the current market, and provide a fair value for the home. In theory, this should be pretty darn close to the offer you’ve made.
Pro Tip: a perfect home is hard to come by, but the right house will check the boxes that matter the most. When crafting an offer and going through the inspection process, it’s important to have a strategy that connects back to your why, your must-haves and your nice-to-haves.
Step 5: It’s Closing Time
You can breathe a sigh of relief. It’s not done yet, but the end is in sight. Good job, friends! Most of what happens now is in the background with the lender and title company. A whole lot goes on behind the scenes, but it’s essentially getting everything finalized and ready to transfer over ownership.
Once the paperwork is in order, you’ll set up a date to sign and the house is officially yours! You made it. You’ll meet your agent at the house to get the keys to your new home.
Pro Tip: this is a huge milestone, so find time to slow down and take it in. Set aside time to cheers on the front porch, let your pup play in the yard for the first time, or even have friends and family over to dream about layout ideas.
Final Thoughts
It’s no secret that buying a home is a big deal. For so many first-time buyers, it’s equal parts excitement and overwhelm. But with a solid understanding of your goals, and the right team around you, it’s possible to go through this process with confidence, and maybe even have a little fun.
Whether you’re just starting to think about buying, or you’ve already started looking, I am here for you as a pressure-free resource. If you have questions, need guidance, or just want to pick my brain, let’s chat, I’d love to support your home-buying journey.
Ready to get started? Send me a message or schedule a complimentary consultation to get the ball rolling.