Homebuyer Checklist - Insights and Tips for Each Step of the Home Buying Process
/Homebuyer Checklist, Insights, and Tips for Each Step of the Home Buying Process, Aiming to Guide Individuals Through a Successful Home Purchase
Are you ready to embark on the exciting adventure of buying a home? At Buyer’s Edge - BuyersAgent.com in the DMV, we understand that this journey can be thrilling and daunting, especially if you need help figuring out where to begin. Maybe it’s your first home, or it’s been a while since you last bought a new home. That's why we've crafted a comprehensive Homebuyers Checklist to guide you through the process and ensure a smooth transition into homeownership.
Step 1: Find, Hire and Partner with a Real Estate Agent | Exclusive Buyer's Agent:
Interview at least three buyer's agents, seek recommendations and choose a Buyer's Agent who can guide and advocate for the homebuyer's interests. Understand the different scenarios under which Realtors work. Do you understand Buyer Agency and who your Buyer Agent works for? To avoid conflicts of interest with traditional real estate companies, consider hiring agents and real estate brokers who exclusively represent homebuyers. Here are a few informative real estate articles that review real estate buyer agency in the Washington, DC, Metro Area.
Do You Understand Real Estate Buyer Agency? Don't Buy a Home with any Tom, Dick, or Harriet.
Buying a Home? What is a Designated Buyer's Agent vs. Exclusive Buyer's Agent?
Learn the Difference Between a True Exclusive Buyer's Agent (EBA) and a Designated Buyer's Agent
What are the Benefits of Working with a Buyer's Real Estate Agent When Purchasing a Home?
Step 2: Ensure Readiness:
Assess financial and emotional readiness for homeownership, considering long-term goals and commitments. Before diving into house tours, conducting a thorough assessment of your finances is crucial. Evaluate your job security, gather sufficient financial resources for the down payment, and ensure you have a few extra months of reserve funds.
Step 3: Get Finances in Order - Find the Right Mortgage with a Trusted, Experienced Mortgage Broker and Get Pre-approved for a Mortgage:
Select a trusted, highly recommended lender.
Compare rates.
Get pre-approved for a mortgage.
This step helps determine a realistic budget, check credit scores, and calculate purchasing power. Talking to a lender will also help determine the down payment amount, explore state first-time home buyer programs, and consider gift money for down payment assistance.
Ultimately, all this will help define your comfortable price range, and when the time comes to make an offer, it demonstrates seriousness to sellers. Work with an experienced and local loan officer. Be cautious of online pre-approvals. Keep in mind that you will be able to shop the rate again after you secure a ratified contract.
Step 4: Learn Real Estate Lingo
Navigating the world of home buying involves familiarizing yourself with industry terms. Lenders and your Realtor will break down essential terms such as mortgage term, annual percentage rate (APR), fixed-rate mortgage, adjustable-rate mortgage (ARM), conventional loan, and government-backed loan. This knowledge enables you to make educated decisions when choosing financing options.
Also, discover the language of various federal, state, and local homebuyer programs to ease your homeownership transition. From FHA loans to Homeownership Vouchers and the Good Neighbor Next Door program.
Step 5: Get Educated About Environmental Hazards in and Around Homes and Condos in the DMV:
Be aware of potential hazards and conduct due diligence.
Step 6: Create a Homebuyer Wishlist:
List must-haves and nice-to-haves for the desired home, considering location, property type, and condition.
This might be a good time to download the LandGlide app (free and paid access). It is one of our homebuyer favorites. From the app, buyers can learn the following:
Property Owner
Acreage
Square Footage
Property Address with a little blue Dodge that shows you where you are standing as homebuyers walk around the property.
Sales Price
Building Description
The LandGlide App can be handy but doesn’t replace a property survey.
Step 7: Drive-By Tour of Neighborhoods:
Drive through neighborhoods to explore options. Consider commute times, access to amenities, walkability, niche grade, and school districts. Evaluate not only commute times and school districts but also potential risks such as natural disasters and their impact on insurance costs and resale value.
Step 8: Select Search Areas:
Work with your buyer's agent to receive lists of available properties, "for sale by owner" homes, and coming soon properties. Avoid contacting listing agents directly.
Step 9: Go House/Condo Shopping in the DMV:
Set up tours with your agent to gather detailed information on homes. Get your boots on the ground.
Attend open houses and let the listing agents know you are working with an Exclusive Buyer's Agent.
Go on numerous house tours with your agent and narrow down choices based on preferences and requirements.
Take your time.
Step 10: View Comparable Home Sales:
Have your real estate agent obtain information on sales of similar properties. Evaluate neighborhood sales and property factors.
Step 11: Get Educated on the Home Buying Process:
Keep informed daily on new properties in the market.
Step 12: Identify a Home to Purchase:
Choose a home or condo you want to buy.
Step 13: Research Sellers, Neighborhood, and Schools:
Google information on sellers, neighborhoods, schools, and relevant statistics.
Step 14: Writing an Offer:
Work with your DMV Buyer's Agent to make an offer on the chosen property. Understand market analysis, timing, negotiation, and contract details. Negotiate with the home seller and be prepared to walk away if contract terms and/or prices are out of this world.
Step 15: Contract Acceptance:
When the sales contract is accepted and ratified, be ready to write an earnest money check. Then, stay focused and organized with the help of your Exclusive Buyer's Agent.
Step 16: Schedule Home Inspection:
Consider completing a home inspection in advance in a competitive real estate market.
Choose a well-vetted inspector. A home inspection may identify potential issues and necessary repairs. Consider additional specialized inspections if needed. (Well and Septic, Swimming Pool)
Step 17: Negotiate Home Repairs or Credits:
Based on inspection findings, negotiate with the seller regarding any repairs or credits needed.
Step 18: Mortgage Application:
Understand the mortgage application process and time frames. Choose a lender, complete the mortgage application, and undergo the underwriting process. Be prepared for document submissions and a thorough financial review.
Step 19: Have the Property Appraised:
An appraisal determines the property's market value, and the buyer pays for this service.
Step 20: Obtain Homeowners Hazard Insurance:
Shop around for homeowners insurance. Secure homeowners insurance as a condition for the mortgage, ensuring coverage is sufficient to replace the home.
Step 21: Termite-Pest Inspection:
Discuss the need for termite-pest inspection with your agent.
Step 22: Notify Utilities:
Call utilities in advance and transfer accounts for settlement day.
Step 23: Final Walkthrough Inspection:
Confirm the property's condition on the day of settlement.
Step 24: Settlement Schedule - Close on Your New Home
Keep track of deadlines for inspections, approvals, and settlement.
Review closing documents, compare the closing disclosure with the loan estimate, and complete the final walkthrough. On closing day, receive the keys to the new home.
Closing with Confidence
The final step in your homeownership journey involves the closing process. Our checklist prepares you for this moment and the importance of reviewing everything carefully to avoid surprises.
Embark on your homebuying journey with confidence and knowledge. Buyer's Edge -BuyersAgent.com Homebuyers Indispensable Checklist is your trusted companion, ensuring you navigate the process efficiently and make informed decisions at every step. Start your search for the perfect home today!
