The homebuying process can seem complicated, but a qualified Realtor can help you take things step-by-step, and soon you will be holding the keys to your new home!
Nine steps to buying a home
- Figure out how much you can afford
- Know your rights
- Shop for a loan
- Learn about homebuying programs
- Shop for a home
- Make an offer
- Get a home inspection
- Shop for homeowners insurance
- Sign papers
Step 1: Figure out how much you can afford
It's important to know what you can afford. It depends on your income, credit rating, current monthly expenses, down payment and the interest rate. The calculators below can help, but it is best to visit a lender to find out for sure. Many people don't know that all lenders are not alike. For instance, some don't offer low interest Rural Development loans. An experienced Realtor knows the local lenders and which ones will be the best help to you.
Need help with your down payment and/or closing costs? Idaho has several programs that can help qualified buyers.
Step 2: Know your rights
Step 3: Shop for a loan
Not all loans are equal. How can a first-time home buyer know which financing is best? Your Realtor can help explain loan types and what all those financial terms mean. Then he can help you find several lenders to talk to, so you can compare costs and interest rates, and negotiate to get a better deal. Finding the right loan can save you thousands of dollars. Let your realtor help you with this important step.
It's also important to get pre-approved for a loan. Some home sellers won't accept offers from buyers who are not pre-approved. And it is easier than it sounds! With a pre-approval letter from your lender, you can spend your time looking at homes in your price range with the knowledge that when you find the right one, you are prepared to make an offer and get the process started without delays.
Step 4: Learn about homebuying programs
FHA loan programs offer lower down payments and are a good option for first-time homebuyers. Rural Development Loans are also a good option in Eastern Idaho. They provide 100% financing programs and subsidized loans for lower to moderate income borrowers.
| HUD's special homebuying programs
|
Step 5: Shop for a home
Start your search by clicking on Search the MLS or My Listings in the menu to the left. Look through all the possibilities so you can begin to get an idea of what you want. It is not unusual for buyers to start with one set of criteria and then end up with an entirely different list of what they want in a home! You will learn what you really like by experience after viewing several homes with your Realtor. An experienced Realtor has shown hundreds of homes and participated in a good many home inspections. Let your Realtor put all of that experience to work for you.
Step 6: Make an offer
Discuss the process with your real estate agent. If the seller counters your offer, you may need to negotiate until you both agree to the terms of the sale. Your Realtor has lots of experience in negotiating and can represent your interests in a professional manner and to your benefit.
Step 7: Get a home inspection
Your Realtor will advise you to make your offer contingent on a home inspection. An inspection will tell you about the condition of the home, and can help you avoid buying a home that needs major repairs.
Step 8: Shop for homeowners insurance
Lenders require that you have homeowners insurance. Be sure to shop around.
Step 9: Sign papers
You're finally ready to go to "settlement" or "closing." Be sure to read everything before you sign! Congratulations on buying your first home!
