How to Buy A House | Buying a House for the First Time - Timeline for Buying a House (8 Steps)

hi this is Shana hill of maximum one realty taking you over the hill to home ownership so tonight we're talking about the timeline to buying a house so starting out living maybe with your parents or you're renting or you're living with roommates whatever is happening now from the time that you're in that position to the time you're a homeowner I'm gonna give you the steps that it's going to take to get you in your new home so before I start please hit the bell icon and subscribe if you haven't subscribed already because I have new videos every week so let's get into it step one is meet with their real estate agent now other people may say meet with the real estate agent after you get pre-approved for the mortgage but I believe you should we you should really meet with your real estate agent first because if they've been in the business for a little while they know the best lenders they know the best professionals to help you and help navigate you through the financing as well although they aren't approve your financing they can advise you and coach you through making sure you get the best deal so find your real estate agent that has some expertise in your area and that also has some experience in working definitely with first-time homebuyers so that's number one number two is get organized so I want you before you say I'm gonna go apply for this mortgage I have a video all about the mortgage documents you need to get pre-qualified but the basic documents you're going to need are there tax returns your pay stubs and your bank statements for the most part you have those things some people don't know where all of those things are and they takes them a minute to pull it all together if you cannot find your old tax returns you have to go to the IRS fill out a form for them to send you a transcript of your past tax returns that can take a minute you want to make sure that you can put your hands on all of the documents that the typical lender is going to request so again watch that video gather everything up and then you're ready to do step number three step number three is for you to actually apply for a mortgage so you're gonna use all the documents that you organize and you're gonna apply most places you're applying online through their website so based on who you are mortgage lender recommend it are your real estate agent recommended you may go ahead and apply but you should apply at least three places maybe to the person that your agent recommended to your credit union because a lot of times with your credit union you'll find lower interest rates so you want to part with your credit union and if you're not a member just joins pretty easy to join the local credit union and then maybe a bank or financial institution and also maybe an online bank so then you get a good idea of you know what rates everybody is is offering you you want to make sure you're choosing the best rate so at the minimum you want to apply at least three different places now you're thinking that's gonna dig my credit I don't want to do that it will only thing your credit once because the type of financing you're trying to get are all the same so it doesn't count as long as you apply within a 30-day period but I wasn't linked i was shortened that to 14 days just because of so that you make sure there's no overlap because then it will start to affect your credit but because you did step number two and you got organized it's very easy you could probably apply for all three of them within one day because again applications online you're submitting the same documents it's you know each and every time just two different lenders it should go very very quickly and then within two to three days you should get some answers back and let you know what you got pre-approved for and interest rate that they're going to offer you so that's the pre-approval process and that's number three once you get pre-approved for a mortgage they're gonna tell you you you're pre-qualified for two hundred thousand you're pre-qualified for five hundred thousand you're pre-qualified for 125 whatever that amount is that becomes your budget to shop for a house but in the rest to help you make it go a little bit smoother do not spin like do not go crazy and they Paulo fight your 200,000 you gonna spend all 200,000 you should step back at least 10% off of what they offered you so if they offered you $100,000 send more than 90 you want to make sure you're making a smart financial decision a you're not cuz they're going to tell you what your maximum amount they could lend you is you don't want to max out go ahead and go beneath that even if you go lower maybe 75% or 80% but at the minimum 90% back their number down at least 10% and then you'll be fine as far as you know knowing that you can afford the mortgage or more than afford the mortgage that's very important that you don't go up to your maximum so don't feel like oh they pre-approved me for this I have to spend this you do not have to so go ahead and try to back it up at least 10% and only spend about 90% of what they're offering you and get that in your head that'll be better so then you're going to go ahead and Shop home that step number four you're going to shop around with your real estate agent for homes in your desired area now hopefully prior to this you kind of have an idea you have an idea of what neighborhoods you want some move to so you want to research the neighborhoods the typical price but it's kind of hard now you know is you your approve pre-approved for some neighborhoods most neighborhoods have like a price range within them so you may not be a for being able to afford some neighborhoods you may be able to afford other neighborhoods and now that you know what neighborhoods you can afford you want to be in the best neighborhood possible here's a tip even if you do not have children yet you need to make sure you're buying in the best school system for your budget because the person that you may sell your house to in the future they may have children that's one of the top things that people look for when they're trying to choose a house is how are the schools in the area so even if you don't have children check out the school system and make sure that it's doing pretty well so it won't hurt your resale value but you want to look at the neighborhood's you want to look at I'm how the commute to work and that sort of thing you want to make sure you're going to shop a lot of people tell me I just want to be in the city or I just want to be you know and I'm in Atlanta so they'll say I want to be in Atlanta but where exactly kind of narrow it down that's gonna help your real estate agent it's gonna help you not go crazy all over the place looking and maybe miss out because you're not focused on one area you may miss out on the home that comes on the market because it's harder for your agent to take you to you know all of these houses so far and spread out but it's very easy for your agent to focus on a couple of neighborhoods and when the listings come out go out and go see those and you know focus on those areas so go ahead and go shopping for your home because you have your pre-qualification letter and you're ready to go now step number five you're gonna find a house and you're gonna make an offer so your real estate agent will help you put in the offer for the house and when she puts in the offer she she or he whoever your real estate agent is when they put in the offer they're going to include your pre-qualification letter showing that you're serious about the about the house and you're qualified to buy it now I also have another video about earnest money you're going to have to include earnest money along with the offer again showing that you're serious is consideration for the with the offer and I explained that in full just about what earnest money is but it's a small payment that you make upfront showing that you're serious about buying the house now after your offer is you submit your offer they can either counteroffer you they can accept your offer or they can totally ignore your offer some people do that as well especially if they're you know it's a lot of competition for this house so at this point hopefully it gets accepted but if it doesn't you have an opportunity to they have an opportunity to counteroffer you you can renegotiate negotiate the offer kind of some back and forth so that's that Tunney for you to kind of make sure you're submitting your best offer the first time especially if it's a highly competitive situation I've had a lot of clients especially first-time homebuyers they want a lowball the pride is trying to get like an extra extra good deal but it's really supplying demand unless there are a lot of those homes in the neighborhood available you're gonna have a lot of buyers trying to buy that same house you want to make sure you're coming with your best offer and I'll do another video about how to get your offer accepted but I just want to go through the steps so that step five step six and negotiation and contract once you've negotiated everything hopefully both sides can come to an agreement and you have a binding contract between you and the seller and you agreed on the price you've agreed on any closing costs you've agreed on a closing date so in the contract it'll say when you want to close on the home the typical closing you should be able to close that average loan within 30 days if you're doing any kind of down payment assistance program it may take a little bit longer maybe 45 days but in general 30 to 45 days you should be able to close from the time you have the contract at the time you transfer ownership in your name should be between 30 and 45 days sometimes it can be even sooner but generally that's with cash buyers and that sort of thing so I anticipate about 30 to 45 days so you want to make sure when you're going shopping if you're in a leased situation that you're not gonna be you know here's a tip to when you close you skip the next month before you have to make a payment so if you close in January your first payment wouldn't be until March 1st so just keep that in mind if you're thinking about getting out of a lease and not want to have to make two payments whenever you close you skip the next month and then in general most of the time you skip the next month and then the first payment is due that the following month so just something to keep in mind if you're trying to figure out your budget and your closing timeframe all right so now after you your offer is accepted you have escrow period this is a time that you can do I'm sorry one step seven this is a time that you are going to do your inspections and I always advise first-time homebuyers to go with you hire the inspector to inspect the house that you accompany the inspector to the inspection because as a first time homebuyer you need to know something like about the water heater and about the HVAC just how everything works in the house but is your first time if there are any red flags that the the inspector sees you'll know firsthand you'll know as soon as he sees them so in most states they have a due diligence period at that period of time that you're doing your inspections your check in the neighborhood your all those things and you usually can't get out of your contract with no penalty and you'll get your earnest money back so that this is an opportunity for you to check out the house really take a deep dive into the neighborhood go in the morning go at night go on the weekends make sure this is a place maybe you go and you travel that commute and see if the traffic really backs up from you know this house to your job you want to do all of those things during the due diligence period but in general most states you can get out of your contract throwing the due diligence period for any reason you just walk away but once that due diligence period ends you're kind of stuck in that contract and you're at risk of losing your earnest money that you put up originally if you back out after a certain period so you're doing all your inspections also an appraisal will be done during this period so the bank that you're like you're borrowing the money from for the house is going to send an appraiser to make sure the value in the contract is either the same or more they are not gonna lend you money for a house that is valued at less than the loan so for example keep it simple the house is a hundred thousand and you're under contract to buy it for a hundred thousand and our appraiser comes out and they say this house is not worth a hundred thousand it's only worth ninety five thousand and the bank will say the most will lend you is ninety five thousand because although they're buying the house you owe the bank so if you ever were to foreclose or stop paying your loan that Bank picks your house back and they want to make sure they have the value to sell it and get their money back so they're never going to lend you more than the house is worth so if you're worried that you're gonna pay too much for this house and I don't know if it's worth this keep in mind that there will be a third party to verify the value of the house ahead of time so you'll know exactly what the house is worth so don't worry about paying too much for the house if you're taking out a loan there will be an appraiser that comes out for the bank to verify that you're paying it their praises for more that means you have equity in the house and that's great but if it appraises for the dollar amount that's fine as well you'll get equity over time but if it appraises for less the contract has to be renegotiated between yourself and the seller and your agent will help you with that so that is step 7 after escrow after all of the the contract is finalized appraisals are done all of those things happen it's time to close and so during this time right before this time the lender may ask you for new financial documents you remember at the very beginning I'm step three you got pre-approved now they want to make sure you're still working and you still have money in the bank so it's really important that you maintain your financial status throughout the process you don't want to make any major purchases like go buy a car or you know those types of things you want to keep it very low-key save all your money don't spend a lot because you want to make sure you're still approved because they can that's why it's called a pre-approval they will reprove you right before you're about to close to make sure you're still in the same financial position that you haven't taken any you know more debts cuz when they approved you they approved you based on that criteria they're gonna check again your bank statements they're gonna check your last check stub they're gonna check all of those things to make sure you still are in the same place you were doing their pre-approval so it's very important that you stay financially the same as you are during the pre-approval process so at the closing there's there should be no surprise that closing if you get to the closing table it's really just a transfer ownership of the house from the seller to you you'll get your keys you get any garage door openers look at everything then and the money the closing attorney is usually at a closing Attorney's Office or a title company's office they will transfer the title from the sellers name to your name and you'll sign a lot of documents taking ownership plus you're signing a lot of documents saying that you owe the bank the money when you took up the loan so once you finish signing everything the house is yours and you're a homeowner so those are the eight steps in the timeline that'll take you I tell my clients it typically takes 90 days from the very beginning to the very end to find the house to close on a house so it's really kind of simple so don't let not knowing or not knowing the steps or being experienced with everybody at one point or another was a first-time homebuyer so if you have any questions please put in the comments please like and subscribe to my channel if you have any questions about any of the steps definitely ask me again this is Shahid a hill with maximum 1 realty excellent and buyer seller and community service

Channel: Shaheedah Hill

Views: 85,571

Keywords: Shaheedah Hill, Atlanta real estate, First time buyer, buying a home for the first time, buying a house for the first time, Buying my first house, Homebuying timeline, steps to buying a house for the first time, first time homebuyer tips, first time home buying 101, what to know when buying a house for the first time, How to by a home for the fist time step by step, Timeline for buying a house, home timeline, how to buy a house

Id: fgUkwjA12V4

Length: 16min 34sec (994 seconds)

Published: Wed Nov 27 2019