The Ultimate Guide for First-Time Home Buyers: 10 Essential Steps to Buying a House

If you're ready to buy a house, it's important to know the steps involved in the process to make the experience as stress-free as possible. In this article, we'll go over 10 steps to buying a house, starting with prioritizing your needs and ending with closing on your new home.

First, consider where you want to live and what's important to you as a homebuyer. Some questions to ask yourself are: How much house can I afford? What type of loan do I qualify for? How much do I have saved for a down payment? Can I afford to purchase in my desired neighborhood? How long will my commute take? Is the school district a fit for my family? Do I qualify for any downpayment assistance programs?

Step 1:

Check your credit score. Before you apply for a mortgage loan, it's a good idea to check your credit score and review your credit report for any errors. The higher your credit score, the lower the interest rate you'll receive. A credit score of 720 or higher will get you a good interest rate on a conventional loan, but qualification criteria depends on the specific lender.

Step 2:

Prioritize your wish list. Make a list of must-have home features, but remember your price point will likely dictate the size, location, and amenities of your future home. Some examples of wish list items are the number of bedrooms and bathrooms, square footage, outdoor space, preferred location, type of home, layout, features, and finishes, and school district.

Step 3:

Find a real estate agent. Most buyers find it helpful to have a knowledgeable real estate agent on their side to guide them through the process. A buyer's agent can help with market insights, offer price, negotiating, professional recommendations, and experience.

Step 4:

Get pre-approved. Getting pre-approved by a lender will tell you if you are financially qualified to purchase a home and how much home you can afford. In order to get pre-approved, a lender will calculate your debt-to-income ratio and assess your overall financial health.

Step 5:

Start your home search. Once you know your budget and what you're looking for in a home, it's time to start your search. Work with your real estate agent to find homes that meet your criteria and schedule viewings.

Step 6:

Make an offer. When you find a home you like, it's time to make an offer. Your real estate agent can help you determine a fair price based on comparable homes in the area.

Step 7:

Get a home inspection. Once your offer is accepted, you'll want to have a home inspection to identify any potential issues with the property.

Step 8:

Secure your financing. You'll need to secure your financing by providing your lender with any additional documentation they need and completing the loan application process.

Step 9:

Prepare to move. Once your loan is approved, it's time to start preparing to move. This includes scheduling movers, transferring utilities, and packing up your belongings.

Step 10:

Close on your new home. Finally, it's time to close on your new home. At the closing, you'll sign all the necessary paperwork and receive the keys to your new home.

Buying a home can be a complex process, but understanding the 10 steps involved can help you make a plan and achieve your goal of homeownership. If you're ready to start the process, consider working with a knowledgeable real estate agent who can guide you through each step.

Top 9 Questions Home Buyers Ask - Everything You Need to Know

Buying a home can be a daunting experience, especially for first-time buyers. In this blog post, we'll cover the top 9 questions that many home buyers ask. From getting started to receiving the keys, we'll provide detailed answers to each question to help you navigate the home-buying process with confidence.

1. How do I get started?

   The first step in buying a home is getting pre-approved by a lender. This will give you an idea of how much home you can afford and whether you qualify for a mortgage.

2. How long does it take to close on a home?

   On average, it takes about 30-45 days to close on a home. This timeframe can vary depending on the complexity of the transaction and other factors.

3. What does my agent do?

   A buyer's agent will negotiate on your behalf and manage the closing process from start to finish. They will help you find homes that meet your criteria and guide you through the offer and negotiation process.

4. How much do I pay for a buyer's agent?

   You don't have to pay anything for a buyer's agent. The seller's agent shares their commission with the buyer's agent. In Greensboro, the commission rate is typically 6% of the purchase price, which is split between the two agents.

5. What credit score do I need to qualify for a mortgage?

   Most home loan programs require a minimum FICO score of 620. It's best to speak with a lender to determine your specific requirements and options.

6. How much money do I need for a down payment?

   The down payment required varies depending on the type of loan you choose. Some loans, like VA and USDA loans, don't require a down payment. Others start as low as 3.5% down. Your lender can provide you with more information on all available options.

7. What other fees will I need to pay?

   In addition to the down payment, you'll need to pay closing costs, which typically range from 2-4% of the purchase price. Other fees may include inspection fees and loan origination fees.

8. When will I receive the keys?

   You'll receive the keys to your new home once the closing has been recorded with the register of deeds, which typically happens on the same day as closing.

9. What's the best advice for home buyers?

   Hire a knowledgeable real estate agent that you trust and ask lots of questions! A good agent will guide you through the entire process and ensure that you make the best decision for your needs.

Buying a home can be overwhelming, but by understanding the top 9 questions that many home buyers ask, you'll be better prepared to navigate the process. Remember to work with a trusted agent and lender, ask lots of questions, and take your time to find the perfect home for you.

To Inspect or Not to Inspect: Weighing the Risks of Waiving a Home Inspection

Are you considering waiving a home inspection to make your offer more attractive to a seller? While this may seem like a good strategy in a hot seller's market, it comes with huge risks. In this blog, we'll discuss the importance of a home inspection and why you should never waive it.

A home inspection is an essential part of the home buying process that protects your financial interest in one of the largest purchases you will make. It provides you with valuable information about the condition of the home, any potential hazards, and any repairs or maintenance that may be needed.

Without a home inspection, you may not be aware of expensive issues that can cost you thousands of dollars in repairs down the road. A home inspection can uncover potentially hazardous items in a home such as bad wiring, unsafe heating or cooling equipment, possible Radon contamination, or even structural issues.

While it may be tempting to waive a home inspection to make your offer more attractive to a seller, it's important to remember that offers that waive a home inspection contingency are more attractive to home sellers because it's unlikely that the buyers will find a major problem with the home and walk away from the sale.

If you want to make a strong offer but still have a home inspection, consider adding an addendum stating that you will not ask for any repairs, or only ask for repairs over a certain dollar amount. This way, you can have an inspection and know if there are serious issues with the home, but your offer will still look very attractive to the seller because they will know that you will not ask for any or many repairs.

If a major issue arises from the home inspection, you can still back out of buying the home if the seller is not willing to make the repairs or renegotiate the offer price. However, keep in mind that you will lose your due diligence deposit if you are in the state of NC.

In conclusion, waiving a home inspection may seem like a tempting way to make your offer stand out in a competitive real estate market. However, it is a risky decision that could potentially cost you thousands of dollars in unforeseen repairs and maintenance. As a responsible home buyer, it is important to prioritize your financial interests and obtain as much information as possible about the condition of the property you are purchasing.

Therefore, I strongly advise against waiving a home inspection. Instead, consider adding an addendum to your offer that limits the repairs you will request or the amount you are willing to ask the seller to cover. This way, you can still have the peace of mind that comes with a thorough home inspection, while also making your offer more attractive to the seller.

Remember, a home inspection typically costs a few hundred dollars, which is a small price to pay for the knowledge and protection it provides. So, don't take shortcuts when it comes to such a significant investment, and always prioritize your long-term financial interests.

The Ultimate Guide to Working with a Buyer's Agent in Greensboro, NC: Saving Time and Money on Your Home buying Journey

Are you getting ready to purchase a home and have been told that you need a buyer's agent? If you're not sure what a buyer's agent is, don't worry, we've got you covered. In this blog post, we'll discuss the role of a buyer's agent and why you might need one.

A buyer's agent is a licensed real estate professional who works on behalf of homebuyers to help them find and purchase their dream home. Here are some of the responsibilities of a buyer's agent:

1. Scheduling Home Tours:

   After determining what their clients are looking for and what they can afford, the buyer's agent will schedule appointments to tour homes that fit what the clients are looking for. The agent will also explain the different features of the properties and even features the neighborhood.

2. Negotiating Offers:

   The buyer's agent will advise clients on what price to offer for the property and will present that offer to the seller's agent. The agent will also negotiate on the behalf of the buyer.

3. Referring Reliable Professionals:

   A buyer's agent should also be able to refer you to reliable professionals such as mortgage brokers, real estate attorneys, home inspectors, movers, and more. This can help expedite each step of the process and move you closer to a successful closing.

4. Overcoming Setbacks:

   If the home inspector's report shows issues with the home or the appraisal comes in low, the buyer's agent can advise you on how to proceed with the transaction and act as a buffer between you and the sellers.

When choosing a buyer's agent to work with, it's important to not just take the first agent you meet. Make sure you do a little research and interview the agent to make sure they are a good fit for you. Here are a few questions that you should ask when interviewing a buyer's agent:

• What neighborhoods do you specialize in?

• What's your schedule and availability?

• How long have you been a real estate agent?

Once you agree to work with a buyer's agent, you will have to sign a contract called an "exclusive buyer agency agreement," outlining the agent's services and compensation. This contract also means that this person will be your representative and that you will not work with another agent. This agreement is basically an employment contract between you and the agent.

In summary, a buyer's agent can be an invaluable resource when purchasing a home. They can help you find the right property, negotiate offers, and overcome setbacks. If you're in the market for a new home, consider working with a buyer's agent to help make the process easier and more successful.

What to Do After Your Offer Is Accepted: A Guide for First-Time Homebuyers in Greensboro, NC

Congratulations, you have just had your offer accepted on a new home! It's an exciting time, but you may be wondering what to do next. As a licensed realtor, I am here to guide you through the steps you need to take after your offer has been accepted.

1. Home Appraisal and Inspection

   The first step is to get your home appraised and inspected. Your lender will require a professional appraisal to ensure that the home's value is in line with the purchase price. If the home's appraised value is less than the purchase price, you will need to negotiate with the seller to lower the price or increase your down payment. A home inspection is also important to identify any issues with the home. Even if it's not required, I highly recommend that all buyers have one done. Review the inspection report in detail with the inspector to ensure that you're familiar with any potential problems.

2. Get Your Funds Ready

   Make sure you have the funds you need for closing day. If you need to borrow money from a retirement account to cover the down payment, do that right away. You want to ensure that you have all of your funds ready for the big day.

3. Obtain Homeowners Insurance

   Homeowners insurance is usually required before closing. Shop around at several different insurance companies for the best rate, and make sure you have proof of insurance before your mortgage is approved. Depending on where you live, you may also need additional insurance, such as flood coverage.

4. Final Walk-Through

   The final walk-through is a crucial step. 24 hours before closing, you will need to walk through the property to ensure that everything is as it should be according to the contract. This is your chance to check for any damages or missing items that should have been included in the sale. If you find any issues, you may need to postpone the closing to allow the seller time to fix the problem.

5. Closing

   On closing day, you will sign the mortgage documents and officially become a homeowner. Make sure to bring ID and a cashier's check to pay closing costs. Your Realtor® should be there, along with the closing officer and sometimes the mortgage broker. After you sign all the documents, the closing attorney will record the deed, and you will officially become a homeowner!

Buying a home is a major investment, and there are many steps to the process. Following these steps after your offer has been accepted will help ensure a smooth and successful home buying experience. If you're considering buying a home this year and have questions or need assistance, don't hesitate to reach out to me. I am here to help!

No Money Down? No Problem! USDA Loans for Greensboro, NC Homebuyers

Are you looking to purchase a home but don’t have the money for a down payment? Well, a USDA loan might be the solution for you! In this article, we will discuss USDA loans and how to qualify for them.

A USDA home loan is a type of loan that is backed by the US Department of Agriculture to help low to moderate-income families living in designated rural areas purchase homes more affordably. This loan offers 100% financing, lower mortgage premiums, and lower interest rates. There are three main types of USDA mortgage loans:

1. USDA Direct Loans: These loans are issued directly by the USDA for qualifying low-income borrowers with interest rates as low as 2.5%.

2. USDA Loan Guarantees: These loans are issued by participating lenders and offer low-interest rates and minimal down payments.

3. USDA Home Improvement Loans: These loans are given to qualified homeowners to make repairs or improvements on their homes.

To qualify for a USDA loan, there are several eligibility requirements that you must meet. Firstly, you must live in the home and use it as your primary residence. The property you are purchasing must also be located in an eligible rural area, which you can check on the USDA’s eligibility site.

Furthermore, your adjusted gross income cannot be more than 115% of the median income in the area. You can also use the USDA’s eligibility site to check your income eligibility. You must have a stable income and can make your mortgage payments without incident for at least 12 months based on your assets, savings, and current income. Most lenders require a credit score of 640 or better, but if your score is close to that or below, you may still qualify.

It’s important to note that although USDA loans do not require a down payment, you will still be responsible for your closing costs.

In conclusion, USDA loans are an excellent option for families who want to purchase a home without a down payment. To learn more about USDA loans and to check your eligibility, visit the USDA website. If you’re interested in getting a USDA loan, contact a lender that specializes in this type of financing. Don't hesitate to reach out to Lynette Selby Real Estate for recommendations on lenders who specialize in USDA financing.

Thank you for reading, and we hope this article has helped you understand USDA loans better. If you have any questions or need further information, feel free to leave a comment or send an email to lynette.selby@bhhsyostandlittle.com