If you’re looking at homes for sale for the first time, you’ll quickly realize that the real estate buying process is more complex than it looks. Thankfully, real estate agents can help simplify each step, providing you with valuable resources, including neighborhood statistics and search tools. Below are a few answers to common questions about the buying process to help you get started.
A Guide to Purchasing Your First Home
Do I need a real estate agent?
A real estate agent is a valuable asset during the home buying process, especially for first-time buyers. They know the local market and can help you find the best deals that fit your budget. They’ll also fill out complicated paperwork, help you understand contracts and documentation, and put you in touch with inspectors and contractors.
How do I finance a home?
First, you’ll want to get in touch with a financial institution to get pre-qualified or pre-approved for a loan. They’ll tell you what loan you qualify for, which will allow you to establish a budget when shopping for real estate.
The size of your home loan depends on your verified income and your credit score, among other factors. You’ll be expected to have between 5% and 20% of the price of your home already on hand for a down payment, so make sure to save as much as possible.
Do I need appraisals and inspections?
An appraisal determines the value of the home and is an essential step in getting your mortgage approved by the bank. They won’t approve a loan for much more than the actual value of the home.
Meanwhile, inspections document and investigate the condition of the home, identifying issues with the plumbing, structure, and electrical systems. Inspections let you know about issues that might be costly to fix, and you can use that information to negotiate a lower price or to require the seller to make repairs before the sale.
How long does the real estate buying process take?
Finding the right home for you can take several months, depending on your criteria, your luck, and your real estate agent. Once you find a home, you’ll need to negotiate with the seller about the price. After the seller accepts your offer, closing usually takes four to six weeks.
Generally, the home search and buying process usually takes at least three months, and often more, depending on the market. Keep this in mind when making plans about your current housing.
For help making smart real estate decisions and finding your dream home, choose EXIT Realty Nexus in Coon Rapids, MN. With over 60 licensed real estate agents, this firm has the experience and the information to streamline your process. The agents will help you stay within your budget and show you many listings that fit your needs. To get started, call (763) 548-1400 or browse their current listings online.