Your 10 Steps to Buying a Home

January 22, 2016 | by Katie Claflin

Categories: First Time Buyer, Home Buyer Education, Homeownership
Tags: realtor, texas financial toolbox, home inspection, homeowners insurance, home buyer education

If your 2016 New Year’s resolution is to buy a home, Realtor.com®’s #1 recommendation is to start the process early in the year.

Their reasoning is this: after comparing the number of listings to the number of home buyers, they found that buyers who start their search in January or February face less competition with nearly the same number of homes.

Buying a home can be a very complicated process, so TSAHC has created a checklist to help you determine if you are ready to buy a home. By following this checklist, you can be prepared to act when the perfect home comes along.

Below is an outline of each of the steps:

  • Step 1: Get Educated. Take a home buyer education course to make sure you are ready to buy a home. Visit the Texas Financial Toolbox to find a quality home buyer education course in your area.
  • Step 2: How Much Can You Afford? Create a budget with a mortgage payment that is comfortable for you.  To see if you qualify for a down payment grant or other assistance through TSAHC, visit www.readytobuyatexashome.com.
  • Step 3: Get Pre-Approved. Contact a lender for a loan pre-approval to confirm how much you can afford.
  • Step 4: What Kind of Home to Buy? Make a list of features you need and want in a home.
  • Step 5: Shop for a Home. Take your time, look at many homes, take notes and ask questions.
  • Step 6: Make an Offer. Work with your REALTOR® to submit a signed proposal specifying the purchase price, terms and conditions to the seller.
  • Step 7: Get a Home Inspection. A home inspector will examine the home’s condition and alert you to any issues that may be present.
  • Step 8: Apply for a Mortgage Loan. Shop around for a reputable lender and a loan product that works for you.
  • Step 9: Get Homeowners Insurance. Homeowners insurance is required by your lender to protect your home from hazards like fire, storms and floods.
  • Step 10: Close on Your Home. Closing day is when the seller receives the funds and you receive the deed and keys to your new home!

Click here to read about each of these steps in detail.  We also encourage you to check out our Texas Mortgage Calculator to estimate your mortgage interest rate based on your FICO score.


On the House blog posts are meant to provide general information on various housing-related issues, research and programs. We are not liable for any errors or inaccuracies in the information provided by blog sources. Furthermore, this blog is not legal advice and should not be used as a substitute for legal advice from a licensed professional attorney.

Comments

Duncan Lance

I do like that you recommend creating a budget with your mortgage payment as early as possible. After all, the amount of money you have to spend on a home will, obviously, have a huge impact on the home you buy. For example, if you know you can only afford homes within a certain price range then you can immediately cut out any homes that fall outside of it.

Jocelyn McDonald

My husband and I want to buy our first home together where we can start a family, but we’ve never done this before and could use some tips. Your article is just what we were looking for, and I liked how you said to make sure we take our time, look at many homes, and take notes of each one, and ask as many questions as we need too. Thanks; we’ll keep this in mind when shopping for our future home.

Derek Dewitt

My wife and I want to buy a home next year, so thanks for sharing this. I like your point about knowing how much you can afford first by creating a budget. I’ll be sure to check if we qualify for a down payment grant like you said.

Steph Sadatmand

My wife and I are looking to sell our home but never had a clue on how to get it ready to sell. I like what you said about knowing the market so that you can set an appropriate price, that’s something I need to look into. Thank you for sharing!

Penelope Smith

This is some really good information about getting a mortgage. It is good to know that it would be smart for me to get pre-approved for a loan. It is good to know I will need to contact a lender to help me with that. Personally, I would want to get someone who has been in the business for a while to help me out with handling a mortgage.

Richard Davis

I agree you have to know how much you can afford and set your budget because there will be unexpected fees along the way especially when buying a house so it is good to be prepared.  Great steps by the way!

Timmy Simmons

This is great information and very useful. I love that you are getting real stories and advice from real agents. Success leaves clues!

James Anderson

Thanks for enumerating the steps that one should observe in buying a new home. What caught my attention is when you said that before you buy a property, one should first list the features that one needs and wants for their home. I believe that doing so makes it easier for one to balance the importance of considering one’s budget while making sure that the things they prefer and need are met when the home is bought. We will surely follow this step, since we also want to buy a property that is bigger than where we used to live in because of an additional family member.

Moira Blythe

My husband and I were thinking of buying a new home. I appreciate your advice that we should make a list of things that we both want in our home. This will make the process easier if we have things that we really need written down.

Nisha Patel

Great article !!! I appreciate the help in choosing a home! Me and my husband are finally going to buy our first home this year, and we want to make sure we choose the right place. I like that you mentioned what are the crucial points that need to consider while buying a new home.

Megan Alder

My husband and I are wanting to move to Cypress TX, but we are having trouble finding experienced real estate agents to help. I think it’s very true that we need to educate ourselves and really budget out how much we can afford before even looking at homes. It also never thought about making sure there is a home inspection before buying, I’m sure with older houses this is a must! Thanks for the tips!

Bob Willis

Informative article, exactly what I was looking for. Thanks for sharing!

Andrea Myers

I like how you mentioned that contacting a lender for a loan pre-approval to confirm how much you can afford before you buy a home. My sister is planning to buy her first home, and she’s thinking of getting a mortgage loan to assist in paying the down payment. I’ll advise to shop around for a mortgage company and determine which one is the best for her.

Bobby Saint

I appreciate you sharing some tips for buying a home such as getting yourself pre-approved. It is important that you maintain a good credit rating or standing for you to have a great chance of getting your loan application approved. You may want to ask for assistance from a money lender regarding this. It should also give you an idea how much your buying power is or which type of house you can afford. If I were to buy a property, I would make sure to keep this in mind. Thanks.

Becca Holton

I didn’t know there was such a thing as homebuyer education courses. That’s something I could benefit from since I’ve never bought a home before. I also imagine that working with a reliable agent can make a difference in your buying experience.

Taylor Bishop

Thanks for going over what to do when buying a home. I’m glad you explained you should have a list of features you would like in a place. I wonder if it could also be good to understand the general costs of these features, especially if it could affect your budget.

Tiffany Locke

It’s interesting that research has shown that people who start searching in January or February face less competition while still looking at the same number of homes. Since this is the case, starting early in the year would probably be a good idea. In order to do this, you’d probably want to hire a real estate professional so that they can help the search go faster in order for you to find and visit homes that match your requirements in order to determine which one will be best.

Amanda Drew

I’m going to be moving closer to my grandma soon so that I will be there to be able to help her if she needs it. Your idea to make a list of what you want in the home is a really good one. I’ll have to do that then I’ll just need to find homes for sale.

Ridley Fitzgerald

These are some things I need to do before buying a home. I’ve never bought one before, so these steps are really helpful, especially the one about getting preapproved. I’ll have to get that done soon.

Leviticus

I like your idea to figure out your finances before finding a house you like.  I’m getting married this year and am planning on buying a house.  It’ll be the first house I buy, so I’m trying to get as much help as I can.

Leave a Comment