Congratulations on deciding to buy a house! This can be a very fun and exciting process. It’s generally advised that you work with an agent, but even if you don’t here’s what you can expect the process to look like.
SECURE FINANCING
- Pre-approval. Contacting a lender to get a pre-approval lender can make the buying process more smooth. Your lender will let you know your borrowing limit and run down the closing costs, which are on top of the cost of the house.
- Budget. Decide how much you want to spend on your new home. Just because your bank will approve a loan up to $750,000, it may not be in your best interest to spend that much. The monthly mortgage may leave you stretched too thin to cover other expenses or projects you have.
Bridge Loan Service
A simple solution to bridge the gap between the home you have and the home you want. Compass Bridge Loan Services gets you access to competitive rates and dedicated support from industry-leading lenders, with the exclusive option to get up to six months of your loan payments fronted when you sell your home with a Compass agent.
MAKE A LIST
- Neighborhood. Which neighborhoods do you want to live in? Take into account your commute, schools, safety, etc. You can change some aspects of your house, but you can’t change the neighborhood.
- Features. What features do you need in the house? Make a list of “must have’s” – can’t live without it, “should have’s” – ideal but not a deal breaker, and “nice to have’s” – the icing on the cake.
HOUSE HUNTING
- Search. Any top agent will find listings that match your criteria. You can also check on your own on 3rd party websites.
- Open Houses. You can go to open houses without an agent. It may be nice to leave your agent’s card to avoid getting follow-up calls/emails from the seller’s agent. Visit as many open houses as you can to get a feel for the homes in your budget.
- Visits By Appointment. Not every seller has an open house when you’re available. Your agent can work with the seller to arrange a time for you to see the home.
OFFER, INSPECTION & CLOSE
- Offer. Work with a top agent to make a competitive offer. It’s your money, so don’t pay more than you feel you should. An agent will give you advice and can negotiate on your behalf.
- Inspection. Hire a professional to inspect the home. You want to make sure you know what you’re buying and there aren’t hidden surprises. You can use what you find in the inspection report to negotiate.
- Close. If everything goes well, all that’s left is for your financing to be approved (this can take a month or so). Once your lender finalizes your loan, you’ll have to pay the rest of closing costs and your down-payment to finalize the paperwork. The escrow agent will make sure the public records are updated and the title is transferred. Then you can move into your new home!