New Year, New Me: How To Buy A House In 2023
With the new year comes new energy, new goals, and the chance for a fresh start. It’s the time of the year where many of us are setting our resolutions and figuring out just what it is we want to accomplish in 2023. If you’ve decided purchasing your first home is one of your resolutions or goals this year, there’s a chance you you may not know where to start. Fear not, that is totally normal! Here is a guide to walk you through the process of purchasing your first home, start to finish, in 2023:
Obtain Mortgage Pre-Approval
Before you venture out into the market to purchase a home, it’s imperative that you know just how much home you can actually buy. The pre-approval process involves filling out an application with your lender of choice, and they will factor in your income, credit score, debt, and assets to determine your buying power. This will not only make your future offers on homes stronger, but it also gives you the peace of mind that you’re shopping within your price range. Not sure which lender to choose? Reach out, and I can send you a list of folks who offer great loan options and take great care of their clients.
Make A List Of Your Wants, Needs, + Dealbreakers
What is important for you in your next home? Do you need 3 bedrooms? A basement? What could you possibly live without? You’ll want to make a list of your wants, needs, and dealbreakers, so your agent can find you exactly what you’re looking for.
Go Home Shopping
Once you know what you want and how much home you can afford, the fun begins! You get to go out and shop for homes. Your agent will send you properties that meet your criteria. You can go see as many or as few homes needed to find something you love.
Write An Offer To Purchase
After discussing the terms of your offer, your agent will write an offer for you and submit it to the agent representing the seller. Your agent will let you know if your offer is accepted. If it is accepted, you move to step 5. If not, you continue the search.
Submit Earnest Money
Once a seller has accepted your offer, or you’re what we call “under contract,” you will submit earnest money typically within 3 business days of your offer being accepted. This is your good faith money to show the seller you’re serious about the transaction. This is typically 1% of the purchase price of the home and gets applied to your closing costs when the deal is finalized.
Start The Loan Process
Once you’re under contract, you’ll work closely with your lender of choice to start the official process of securing your loan and obtaining the best mortgage terms for you.
Order The Inspection
You will have an inspection period in your contract that allows you to have the home professionally evaluated to make sure all the major systems are in good, working order. During this period, you’re entitled to have as many inspections as you’d like, although one will usually suffice. Should there be items in the home in need of repair, you can ask the seller to remedy these items using a form your agent will submit called the “Inspection Objection.”
Obtain Homeowner’s Insurance
You are welcome and encouraged to shop around for homeowner’s insurance until you find the best plan for you. You have up until a certain date within the contract to terminate the contract if you are unable to find suitable homeowner’s insurance for the property.
Appraisal + Closing
Your lender will order an appraisal to ensure the property is worth what you’ll be paying for it. Once the appraisal is cleared, you will wrap up any last minute loan items and close on your new home!
Ready to take the first steps to buying a home? Book a totally complimentary consultation with me! I’d love to help you get started on your homeownership journey.
