Steps to buying a home

Buying a home is a BIG investment…not only that – but it’s a big milestone as well! It’s so important to have the right team of people behind you as you make one of the biggest purchases in your life. Let’s face it, this is a six-figure+ purchase! What other time are you going to purchase something this big? None? Then why would you trust just anyone to helping you purchase your home?

Taking the right steps prior to purchasing is going to help ease a lot of the stresses and heart break throughout this process. Many people think they need to find a good real estate agent. Though it’s partially true, let’s go through the steps on how to do this the RIGHT way.

STEP ONE:

Find a lender. But not just any lender – a good LOCAL one. Please, don’t go through an online, instant approval site. This is the number one mistake that people make is getting “approved” through a site that instantly approves you. This is the BIGGEST purchase you’re going to make, why would you simply fill out a form to have it all float into the universe without meeting these people first…or maybe even talking to them? Most of the time, these online instant approval mortgages is a 1-800 number that you dial. You’re going to get a different person each time.

I also don’t suggest going through the bank that you bank with to get your mortgage done. When stuff hits the fan…who are you going to call on a Saturday night at 7pm when you realize something isn’t going right. Unfortunately, your banker will most likely be enjoying their weekend and not being available to diffuse the fire or situation that has come up. You’ll be working on “office” hour times – which is most likely 9am-5pm.

So who do you choose? Every mortgage is different – and your situation won’t be the same as your friend or family member. There are so many variables in making a loan come together. One of my favorite local lenders here in the Twin Cities/MN/WI area is Ali Massa. I’ve used her both personally and professionally in my purchases. If she says you’re getting a good deal through someone else – she’ll tell you. Ali’s not going to beat around the bush to fluff your situation up, and that’s what I love about her. Here’s her site.

STEP TWO:

After meeting with the lender, you’ll be able to get a better idea on your financial situation. Maybe you have some credit score repair to do, maybe you need to save up some more funds before you can purchase…whatever the case may be – a good lender will walk you through the steps to making it work out financially. The biggest piece is not to get too caught up in the frenzy of the market. Keep in mind, homes will constantly come in and out of the market. YOUR home will be out there at exactly the right time. I’m a huge believer that what’s meant to be will be.

Once you’ve gotten your financial situation figured out and squared away, this is where the fun begins! Your pre-approval letter will be issued and you’re on your way to start shopping!

STEP THREE:

Find a real estate agent! There are so many misconceptions out there that you need to find a real estate agent BEFORE your find your lender and it’s actually backwards. In this current state of market right now, it couldn’t be further from the truth! In a seller’s market (one that we’re currently in as of 2020-2022…maybe longer), it is vital to make sure you have a pre-approval letter before you begin shopping. Many seller’s may request that letter before you even step foot inside their home to tour. When inventory is low, and buyer demand is high, partnering with a solid local agent and lender will put you in the best foot forward.

What should people look for in a real estate agent? Communication is a number one factor in all of this. Without good communication by all parties, there will be many mis-understandings and a mis-trust between you and the agent. Making sure him/her is answering your questions in a timely manner is key to ensuring success.

Another big thing is personality. Not every agent you meet are created equal, same as not every person you meet is created equal. Personality has to jive with you. You’re going to be touring lots of homes with this agent. Make sure to find someone who you will enjoy working with – and that you trust.

STEP FOUR:

Find a home. Put together a list of wants and needs for a home. This list may change as you begin touring more and more homes. When we purchased our home, my biggest need was making sure all the bedrooms were on the same level AND the laundry being on that same floor. I did NOT want to be moving and hauling laundry from the main level to the upper level, or the basement level to the upper level. Nope. Didn’t even consider a home that met everything I was looking for if it had a laundry room separate from the bedroom levels.

Having this list will help your agent narrow your search. Do you need to be close to a job? How about a school district? Bedroom and bathroom requirements? Garage stalls? Detached or attached garage? How about square feet? Finished square feet? Yard space? Keep in mind as you make this list that no home will ever meet 100% of what you’re looking for. A good rule of thumb is about 70%-80% of that list gets checked off, and that home should be considered.

STEP FIVE:

Submit your offer! I made a video regarding this here: Tips on writing a strong offer. This video applies to this current market (Spring 2022). When dealing with multiple offer situations, I get a lot of questions like: What’s the point? Why should I submit an offer? There’s so many, I won’t win. Well, I’d like to counter that with, if you give it your best shot and the answer is no or the sellers declined…at least you can say that you tried. You gave it your best shot – and the home just wasn’t meant to be. You don’t want to waive inspection? Perfect, neither would I (personally). Ask for it to be contingent on inspection. Ask for what you want and maybe…just maybe you might get a YES! ?

STEP SIX:

Your offer is accepted and you’ve gone through almost all the hurdles! You’ve completed inspection, you’ve gotten an appraisal done, and now we’re all just waiting for the final docs to be submitted for a clear to close! This is an exciting time. Last minute docs are needed from the lender to ensure that your situation didn’t suddenly change. It’s an important time to work closely with your lender to ensure everything is going as planned. Your agent is also working closely with the title company to ensure a clean and clear title when ownership transfers. I can’t stress enough how important it is to have that amazing agent on your side. He/She is the one that is facilitating all the back end work to ensure that everything gets done in a timely manner.

STEP SEVEN:

CLOSING TIME! This is a big day! Congratulations if you’ve made it this far! It’s a fun and exciting time to be able to sign docs and paper work and to get the keys to your home! Moving isn’t fun, but having a new home is! It’s one of the best and biggest purchases you will make and it will help build overall financial freedom that you will never get in renting. Welcome to your home!

Every situation is different when you’re purchasing your home. Not everyone goes through the same path of ownership, but for the most part, this is a good outline for what needs to happen. Having that strong, trustworthy, honest agent will help make this process easier. If you’re curious on how I can help in either selling or buying, please don’t hesitate to reach out! My goal is not only to sell or find you your home, but to make dreams become reality.

Happy house shopping!