Guide to Home Buying 101: Buying a home for the first time can be very exciting. Often though the excitement is met with much trepidation by new home buyers. What is the process for buying a home? Where do I start? Can I even afford it? How much can I buy? Is this a good time to buy? It can all seem overwhelming to say-the-least.
Knowing who to turn to is the first place to start. You need a team of experts to guide, train, and partner with you to understand your goals, provide advice and create options you might not have thought of or even know about. These experts will help you breakdown the process and before you know it, you will be ready to determine whether now is the right time for you to begin your home ownership journey.
To get you started, there are two primary professionals you will want to find and reach out to:
- Lender/mortgage company:
- How to find:
- Ask for references from family and friends.
- Contact a real estate agent and they can provide you with names and numbers of lenders their clients have been pleased with.
- Reach out to a mortgage loan officer or mortgage loan department where you bank or already have a loan or relationship.
- How will they help?
- They will help you determine how much you qualify for in terms of purchase price for a home and how much your monthly payments will be. They will provide you with the types of loans (i.e., Conventional, FHA, VA, etc.) and terms (i.e., interest rate, down payment) to best meet you needs. Once a loan type is determined, they will provide you with a pre-qualification (sometimes called a pre-approval letter) which is helpful in the home buying process.
- How to find:
Buying a new home
Now that you know how big a home you can or want to buy, it is time to contact a real estate professional.
- Real Estate Professional:
- How to find:
- Like finding a lender, ask for references from family and friends.
- Call a local real estate company that you are familiar with and ask them to connect you to a realtor that can help you find a home that meets your goals.
- Begin looking at properties online (websites such as Realtor.com) and request a realtor contact you.
- How to find:
- How will they help?
- Based on the price range of the homes you are looking for and other factors such as area, type of house etc. you prefer, they will guide you to the best options for you. They will then begin discussing specific properties with you and if you like them, they will arrange times for you to see the homes. When you find a home, they will help you make an offer to purchase, will explain the various terms and components of the contract and will negotiate on your behalf. Once you have an agreement with a seller, they will help to manage the overall process with your lender, other agents, and companies until you “close” and own your home.
- What to look for in these professionals:
- Friendliness – Find someone you are comfortable with and feel you can trust
- Listening Skills – Does it sound like they are listening to you and trying to find what you want? Or does it sound like they are pushing their own agenda?
- Responsiveness – Do they answer their phone, emails, texts in a timely manner? Are they available to show you homes or to begin work on your loan or request same day? Or are they always pushing you two days out?
- Patience and helpfulness – Are they willing to answer your questions and provide you with additional information? Or are they short and condescending? After all, this is your first time buying so they should recognize that and tailor their services and communication to you accordingly.
There are many steps in the real estate process, but these two professionals are generally the best place to start, even if you are not new to buying a property. Good luck!!
Written by: Julie Eden, Associate Broker, MRP, Licensed in Iowa and Nebraska, Menke Auction & Realty, 124 E. Main St, Treynor, IA, 51575, 402-630-8410, Julie@MenkeAuction.com
