I recently began the journey of finding my first home, and I have learned quite a lot along the way. I am by no means a professional, and I know people's experiences will greatly vary depending on a whole bunch of variables, but here are a few things first-time home buyers might like to know going into the whole process:
1. Get Pre-Approved
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Before you even start your home search, go to your bank and get pre-approved for a loan. This will give you a price range so you actually know what you can afford (It will suck if you discover your dream house only to find out you can't get a loan for it). Many realtors will need the pre-approval before you start touring anyway, so use this as your jumping off point.
2. Find a Realtor
This is actually very easy. Chances are, someone you know has already worked with a good realtor and can hook you up. Someone in your life has bought a house, so talk to them about their experience. Many realty sites will require you to sign up before you view homes, and in this case, you can wait for a realtor to come to you (And they will, like scary fast. It's their job).
3. Manage Your Expectations
This is a though, metaphysical step, but know that you will probably not find the perfect house on the first try. It might only take a couple tours, or it may take several months to find the right fit. Deals may fall trough. You might find a great place, but due to any number of factors (Renters, inspection results, a whole mess of other reasons) it may not work out in the end. It will be frustrating, but keep on trucking. Don't settle for something that's just OK - it's your money and a huge investment (And a decision you'll be stuck with for the foreseeable future) - so make sure you love your new home.
4. Check Out The Neighborhood
Once you have found a property you really like, check out the surrounding area before putting down an offer. Where are the nearest grocery/convenience stores? What will be the easiest route to work? What is the crime statistics for the neighborhood? (The City of Minneapolis website has some great, in-depth stats for crime by neighborhood). You don't want to make a commitment to a property just to find the commute is going to suck, or that the area is way shadier than it looked during the brief time you toured. Do a little research and make sure you know what you're in for before settling down.
5. Schedule an Inspection
In most cases, this will be required anyway, but make sure to make your Purchase Agreement contingent on a good inspection of the property. Be prepared to spend a few hundred dollars, but this is another case of knowing what you're in for prior to settling on a property. A house might look really great on the tour, but a professional inspector will do a thorough job finding out what condition the property is really in. You don't want to sink all of your money into a house just to find out all the plumbing needs to be replaced, there's unseen mold damage, or find any number of other expensive fixes you didn't originally plan on. After the inspection, you may ask the seller to either make fixes before closing or lower the asking price to a point where you can cover repairs yourself.
6. Hurry Up And Wait
You've gotten through the most difficult part - finding a property you love - now it's time for all of the fun paperwork. It will take a while for your formal loan to get approved through your lender, and there will be a lot of forms to sign and papers to submit (Be sure to have your pay stubs and tax forms ready). This will take some time, and after your initial Purchase Agreement is accepted, it will be a bit overwhelming while everything falls into place, but things will eventually settle down.
7. Final Inspection/Closing
You'll want to schedule a final inspection with your realtor prior to closing - usually the day of, right before you close on your new home. Check one last time that everything is the way you saw it when you toured and that any fixes you requested were made. This is your last chance to back out of the deal if something doesn't feel/look right. Assuming your final inspection goes well, it's time to close. It sounds a little stressful, but all you'll need to do is sign some papers, get your keys and finish out the whole process.
8. Enjoy Your New Home!
Congrats, you're officially a homeowner! Time to sit back and enjoy your new purchase (After getting moved/settled in, of course). If you're in a cold climate and moving in the winter time, be sure to grab some floor mats/cleaning supplies prior to your big move. Garbage cans, kleenex, and other basic necessities are a good idea to grab, too. I'm sure you're excited to get all set up in your new digs, but there's no sense tracking mud/snow all over your new investment and having no way to clean it up. Moving is a hard, sweaty, messy process. You'll be glad you have the resources to clean yourself and your new home as you're getting settled in.
These are just a few tips I found useful, but other people are sure to have more helpful information to assist in this next big step in your life. Talk to your friends and family before looking to buy a house. Do a little research, put in some extra time. You'll be glad you did.
