Buying a home is one of the most exciting milestones of your life. To prepare yourself for this moment, you need to know what to expect during the process. This step-by-step first time buyer’s guide created by our team will help reduce the stress of buying a home and help you enjoy the journey as much as possible.
Do you already know where you want to buy? If you want a condo, townhome, or single-family home? Which features do you like and dislike? What’s available on the market now? If you answered no to any of these questions, now is the time to start researching. In addition to looking for homes that interest you, also take note of any changes in asking prices. This could give you valuable insight into housing trends in specific neighborhoods and help you when the time comes to make an offer.
Notice we said to review your budget—not determine how much the mortgage company will give you or what you think you might want to pay for a new home.. In many cases, a mortgage company will pre-approve you for more than you’re comfortable spending, which is why you need to determine the monthly payment you feel comfortable with before talking to a lender. This likely includes doing a full household budget and taking into consideration what changes other than a mortgage payment will occur once you move into your new home. If you’ve lived in an apartment or with roommates, you may overlook new expenses like garbage, water, or HOA fees that could easily blow your budget. Additionally, the costs of home insurance and property taxes often change each year - which impacts your overall PITI payment (Principal + Interest + Taxes + Insurance).
Just because you have an ideal monthly payment in mind, doesn’t mean the mortgage company and underwriters will agree. Just as they may approve you for too large of an amount, they may also approve you for a lesser amount or deny you a mortgage altogether. Lack of time at a job, changes to income type, insufficient credit, past bankruptcies, or other financial variables can cause obstacles when trying to secure a mortgage. Before you get your heart set on a home, talk to a mortgage professional to find out what amount you can qualify for. This will also be an advantage when you make an offer on a home, as most sellers won’t entertain offers from those who aren’t already pre-approved for a loan. Additionally, being pre-approved by a reputable lender vs. a quick online form lender will be a factor sellers consider. If you would like recommendations for great local lenders - call us and we'll happily provide you proven lender options.
Can you shop for, look at, and ultimately make an offer on a home without a real estate agent? Technically yes, but why would you when you can have an established real estate agent represent and protect your best interests? Not only will we help identify properties you might be interested in, arrange showings, and ultimately handle the offer process, but we also have a knowledge of the market that is only earned through years of experience working in the industry. Finding and negotiating for the perfect home can be a daunting task, this is where our expertise and wealth of knowledge come into play. Let us show you around some homes that meet your dream home criteria so you can find the one that's right for you. Even if the home is For Sale By Owner (FSBO), you can still use a buyers agent.
This should be the most enjoyable step of the entire process (other than once all your boxes are unpacked!). We will arrange showings of homes that meet your criteria. Take notes about what you like and don’t like, and make sure to pay attention to details. Turn light switches on and off, open and close doors, and run the faucets in various rooms. Don’t limit your inspection to the home itself. Make sure to take time to explore the neighborhood and keep an eye on traffic at certain times of the day, the parking situation, and how close it is to amenities you care about like grocery stores or your daily commute.
Once you have selected the perfect home, it's time to make swift, strategic decisions so your real estate agent can draft a competitive offer for the seller to review with the listing agent. When you draft an offer with the agent who is working with the seller, they have to push for and advocate for the best interests of the seller - not you. Your buyer agent represents your best interests and is your advocate throughout the process. The listing price, number of interested buyers competing for the home, market conditions, and analysis of sold comparable homes will all impact how you decide to draft the offer with your agent. We are skilled and experienced negotiators on your behalf.
Now is the time to go back to the mortgage lender who pre-approved you and move the process forward. Your lender will work with you to determine the best loan options, collect your required paperwork, get your signature and authorization on disclosures, and work with their processing and underwriting teams to schedule your home appraisal and other necessary steps. If you would like recommendations for great local lenders - call us and we'll happily provide you proven lender options.
Almost every offer will have contingencies. Contingencies are activities that must be completed by a specified deadlines in order for the successful sale ("Closing") of the home. Common contingencies are Earnest Money, Home Inspection, Radon Testing, Financing, and more depending on the home and area. Your agent will work with you and the other service providers like your Lender, Home Inspector, etc. to ensure you remain ahead of the deadlines and to work with you through any obstacles along the way.
Your lender will have your new home appraised by an independent, licensed, unbiased appraiser in accordance with loan requirements. The lender uses the appraisal to ensure that the house value is equal to, or greater than, the purchase price you offered. If an appraisal comes in lower than expected, there are still options and strategies that can be used to keep the deal together.
Ahead of your Closing Appointment, you will receive the Closing Disclosure (CD) from your lender with the final breakdown of your purchase. Prior to your closing appointment, we will walk through the home one last time together to make sure nothing significant has changed, and if applicable, that any inclusions are present. On closing day, you will sit down with the Title Company to review and sign all your closing paperwork. We work closely with your lender and the title company ahead of time to ensure they have everything they need. When you’re finished, you’ll know you are the legal owner of your new home.
After signing the final paperwork to complete the purchase, you are now the owner of your new home. The title company takes care of filing the paperwork for your deed. Beware of mail scams claiming you need to pay $X amount for a copy of the deed. If you have concerns, contact the title company. Now it's time to make sure you update your address, activate your utilities accounts, and unpack!
We are dedicated to helping you find your dream home and assisting with any selling needs you may have. Contact us today for a free consultation for buying, selling, renting, or investing in Wisconsin.
HOPE GRAFF
ADDRESS 517 N WESTHILL BLVD APPLETON WI 54914
