Eight steps to buying your home
Selected tips for first-time buyers from Your First Home
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“Let a team of real-life experts share their real estate wisdom along with heartwarming stories to show you how to achieve the dream of home ownership. I wish I had this information when I bought my first home. The good news for you? You can!"
-Bob Burg, Author of Endless Referrals and co-author of The Go-Giver
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Chapter 1: Decide to Buy
- Purchasing your own home is a great investment that provides specific financial advantages, including equity buildup, value appreciation potential, and tax benefits. (It’s also a forced savings plan that you cannot get from renting!)
- Done right, home ownership lays the foundation for a life of financial security and personal choice.
- There is never a wrong time to buy the right home. All you need to do in the short run is find a good buy and make sure you have the financial ability to hold it for the long run.
- Here’s the most important rule for keeping your stress to a minimum: you don’t have to know everything.
Chapter 2: Hire Your Agent
- When looking for an agent, know that above all else good agents put their clients first.
- Your real estate agent will perform seven main roles:
1. Educate you about your market.
2. Analyze your wants and needs.
3. Guide you to homes that fit your criteria.
4. Coordinate the work of other needed professionals.
5. Negotiate on your behalf.
6. Check and double-check paperwork and deadlines.
7. Solve any problems that may arise.
Chapter 3: Secure Financing
- Follow these six steps to financing your home:
1. Choose a loan officer.
2. Make a loan application and get preapproved.
3. Determine what you want to pay and select a loan option.
4. Submit to the lender an accepted purchase offer contract.
5. Get an appraisal and title commitment.
6. Obtain funding at closing.
- You don’t need to save up a lot of money for the down payment. A conventional mortgage can require as little as a 5 percent down payment, and there are even some first-time buyer programs that require even less.
- Remember, lenders determine what you can borrow, but only you can decide what you can afford.
Chapter 4: Find Your Home
- Careful consultation with your agent is the way to more accurately pinpoint the home you are looking for. The right home will meet all your important needs, and as many of your additional wants as possible.
- The questions you should ask yourself include:
- What do I want my home to be close to?
- How much space do I need and why?
- Which is more critical: location or size?
- Would I be interested in a fixer-upper?
- How important is home value appreciation?
- Is neighborhood stability a priority?
- Would I be interested in a condo?
- Would I be interested in new home construction?
- What features and amenities do I want? Which do I really need?
· You’ll learn as you look at homes, it’s wise to refine your priorities along the way.
Chapter 5: Make an Offer
- The three basic components of a purchase offer are price, terms, and contingencies.
- The right price to offer must fairly reflect the true market value of the home you want to buy. Your agent’s market research will guide this decision.
- Terms cover the other financial and timing factors that will be included in the offer.
- Contingencies are clauses that let you out of the deal if the house has a problem that didn’t exist or which you weren’t aware of when you went under contract. They specify any event that will need to take place in order for you to fulfill the contract.
Chapter 6: Perform Due Diligence
- A home owner’s insurance policy protects you against loss or damage to the property itself and against liability in case someone sustains an injury while on your property.
- The property inspection (which we highly recommend you attend) should expose all the secret issues a home might hide so you know exactly what you are getting into before you sign closing papers.
- Your main concern is the possibility of structural damage. This can come from water damage, shifting ground, or poor construction when the house was built.
- Don’t sweat the small stuff. It’s the inspector’s job to mark everything discovered no matter how large or small. Things that are easily fixed can be overlooked.
- If you have a big problem show up in your inspection report, you should bring in a specialist and if the worst-case scenario turns out to be true, you might want to walk away from the purchase.
Chapter 7: Close
- Your preclosing responsibilities include staying in control of your finances, returning all phone calls and paperwork promptly, communicating with your agent at least once a week, and verifying with your lender that all mortgage funding steps are completed.
- Conduct a final walk-through of the home with your agent.
- Confirm with your agent that you have the settlement statement, certified funds, and evidence of insurance lined up prior to closing.
Chapter 8: Protect Your Investment
- After closing your agent can still help you with such things as providing information for your tax returns, finding contractors and repair services,and even tracking your home’s current market value.
- Perform routine maintenance on your home’s systems, depending on their age and condition.
- Watch for signs of leaks, damage, and wear. Fixing small problems early will save you big money later.
About the Book
There is a special category of life's firsts. First kiss. Driving for the first time. Going away to college. Starting your first job. Saying, "I do." Having a child ... All these unique moments bring significance to the story of your life.
Whether you're from Calgary, Cocoa Beach or any place in between, walking into your own home for the first time is just as magical.
Your First Home is the first book in theKeller Williams Realty Guide Series. It’s packed with inspiring stories and the wisdom of thousands of successful first-time home buyers.
The book walks you through the process of home ownership in eight simple steps and provides proven, practical guidance on how to:
- Decide whether buying is right for you
- Hire a great real estate agent
- Determine what you can afford to buy
- Secure the best financing
- Recognize the right home for you
- Craft a winning offer and negotiate with sellers
- Spot serious issues at inspection
- Close on your new home and maintain it
You'll also learn about successful creative financing strategies and ways to overcome less-than-perfect credit.
If you aspire to own a home of your own, ask your agent for a free copy of the book or buy it
here.
