How to Buy a House in 2024 Step By Step - ALL First Time Buyers Need to WATCH THIS!

so you're ready to buy a house I'm going to tell you the nine simple steps to buy your first home it's not complicated and you should not be overwhelmed all of these people with homes are not smarter than you you just need to know exactly what to do and how to do it and I'm going to tell you I'm Shah Hill getting you over the hill to home ownership and helping you confidently buy your first home and my list may be a little bit different from other ones you'll find online I didn't chat GPT this this is what I've learned after helping thousands of people in America confidently buy their first home this is the way you should do it number one determine what you can afford before the lender tells you what they want to lend you this is very important because when you get pre-approved which is Step number four they are going to tell you how much they are willing to lend you you this may not necessarily be what you can afford it's usually much more than what you can afford so you want to determine ahead of time what you can comfortably afford in your budget for example and I use this often when I was buying my house um that I live in now with my husband we had two children in daycare when the lender pre-approves you they don't care about any bills other than what shows up on your credit report for the most part so they're not going to see the other things that you're responsible for and daycare was very expensive so what the lender thought we could afford was different from what we knew we could afford so make sure you're determining what you can afford first I have some videos that tell you what range you should be in number two is probably also a little bit different from what you're seeing online mine is to find a real estate agent not to go ahead and start shopping for a house but but you want to find a real estate agent upfront so they can tell you at least one lender they would recommend because I'm going to recommend that you get preapproved with at least three lenders you can get a referral from family or friends that have recently bought a home or have bought a home maybe in the last two to three years or from social media agents like on YouTube Instagram that sort of thing that work in your area or the area that you're thinking about moving to one of those two places I want you to find a real estate agent I want you to ask them for a A lender referral and then I want you to put them on the side for a second and then go ahead and get preapproved but before you get preapproved I want you to do step number three I want you to get organized because you're going to be and I'll tell you why getting approved with three different lenders then you don't want to be unorganized because you're going to have to be putting this information on online in three different areas so before you just go ahead and pull up your mortgage application you want to get organized and start pulling some of your financial documents together because to pre-approve you they're going to need like two major things one is your income and your income documents the other one is going to be your credit and they're going to pull your credit just from your your social security number but you want to make sure that you have your pay stubs a lot of people are getting direct deposits so they don't know where you their pay stubs are you want your pay stubs I want you to gather your tax returns many lenders don't require your tax returns but um just in case you qualify for any type of down payment assistance program I want you to gather those for the last two years your pay stubs for the last two months and your bank statements for the last two months pull all of those things together I have a video here that tells you everything they're probably going to ask for in your mortgage application but that's what you're going to do to get organized and then you're ready to get preapproved you're going to get preapproved with three lenders and this is who I recommend one is the real estate agents recommendation the reason why I want you to get a real estate agents recommendation if you just randomly pull three different lenders they are not typically in my experience going to be very responsive sometimes not all the time but sometimes because they're not most lenders get their business from real estate agents so when real estate agents refer them a client then they're much more likely to make sure they follow up with that person I have a lot of first-time home buyers that say oh I did an application online and nobody ever called me back and you know that sort of thing so I don't want that to happen to you I want at least one of these three to come from a real estate agent that that lender has a relationship with they feel more obligated to make make sure they follow up even if you can't get pre-approved and that's very important as well so one of them is going to be from somebody your real estate agent recommends the other one is your current bank or credit union and then the last one can be a real estate broker or an online bank like rocket mortgage or something like that so those are the three that I recommend just pull from those resources those three now I want you to remember and I have a full video that I want you to watch that explain the preapproval process in great detail I'm going to make sure I put all of these links in the description of this video but the reason why you're doing three you want to get the best rate and the lowest fees from your lender they don't all have the same rates and fees so you want to make sure you're shopping that your mortgage around this is the most money you'll ever spend so you want to spend some time making sure you are getting at least three quotes or three pre-approvals and it will not impact your credit as long as you do them within a a 14-day 30-day window Max it depends on the credit scoring model but try to get them all in within 14 days that you're doing these three pre-approvals and it will only impact your credit one time and it's explained in detail in this video let's move on to step number five step number five is begin shopping for a home now that you've received your preapproval and you know what you qualify for you know what your budget is and hopefully you're going off of your budget and not your preapproval and this channel if this is your first time here is going to be a great resource for you I go live multiple times I have videos on every part of the home buying process organized in playlist but you're going to begin shopping for your home with your real estate agent and if you want to make sure one thing I want you to make sure is that you're in a good neighborhood so I made a video on what is a good neighborhood and how you can determine the best neighborhood for you because you want to make sure your home once you buy it is going to go up in value over time and not down in value number six this is when you're going to make an offer on one of the homes that you've been shopping around for you're going to make the offer you're probably going to negotiate a little bit with the seller you're going to come to terms with that seller and then you're going to enter a binding contract a binding contract is when both the seller and you the buyer sign sign the contract saying that you agree to the terms once you're under contract we're moving to step seven the due diligence period and your inspection okay now you don't want to just buy a house and not know if the house needs repairs if something's wrong with the house so typically in contracts your agent is going to make sure you have a due diligence period it's a it's a days or maybe even a week or so that you'll have time to inspect that house and there are several inspections that you can do on a house so you are going to have this time to in inspect and negotiate repairs if you still want the house and usually in this due diligence period you can walk away and terminate and say I changed my mind about this house I didn't know about the things that came up in the inspection report or you can say hey I still want the house but I need a credit for some things I need some money off the sales price I want you know a credit for maybe the air condition in isn't working I want that repaired or I want a credit for certain things so that's some of the negotiation that you can do after you go under contract and do your inspections your real estate agent will help you through this process and make sure it goes smoothly for you but I have a lot of videos about negotiating repairs and working with your home inspector so you'll understand the process for yourself number eight is underwriting and Appraisal so you've decided to go forward with the house and you've negotiated with the seller any repair issues now you're you're pre-approved you got pre-approved in Step number four but you're not fully approved and this is when you typically go through underwriting and underwriting is part of the borrowing process where they take you from pre-approved to approved now they're going to actually verify the things that you put in your application so at the very beginning you probably said I work at this place this is how much I get paid that sort of thing now they're going to actually call your employer they're actually going to call or require paperwork from you if you you know renting a home right now have you ever been late on that rent how long will you be working at your job you know are you working you said you working full-time and your job they call your job your human resources and they say that you're a temporary employee um they're going to go in more detail with some of the things that you said on your application so make sure that you are being very truthful initially on the application because as long as they verify all of your employment they're going to verify you still have the money in the bank to buy this property they're they're going to just verify everything you said initially in that application I have two videos you may want to watch after this one is one is an underwriting video it kind of goes through underwriting in Greater detail and then I also have a reason why some loans get denied after you um received a pre-approval you want to be cautious not to do any of those things so number step number eight number eight is underwriting and Appraisal so if you're borrowing money for this house the lender the bank is not going to loan you more than that house is worth because that house is collateral for the loan so for example if you're buying a house for $500,000 and their loan you $500,000 they're going to send an appraiser out AA an appraiser that they choose that's going to verify that that house is worth $500,000 and during that time after you negotiate your repairs with the seller they're going to be working through underwriting and Appraisal to make sure that house is worth what they're going to lend you if the house does not appraise for the contract price or the loan amount then you probably have to renegotiate that contract with the seller and I have a video about the appraisal process that you can watch as well now we're at step nine the closing now all the hard parts are done the seller has agreed to sell you this property the lender has agreed to lend you the money and now it's time for closing and closing is simply the transfer of ownership from the seller to you and depending on your state you're either going to close with a closing attorney or a title company and they're just responsible for making sure they transfer a clean title to you the new buyer of this property and you're going to sign a lot of paperwork basically a lot of it saying that you're agreeing to pay the lender back um you know the mortgage whether you're doing a 15-year mortgage or a 30-year mortgage you're agreeing to pay them back and you are agreeing that you are aware that if you don't pay the more they can foreclose on the property they'll be telling you all of those things and you'll go ahead and transfer any money your down payment your closing cost you'll transfer all of that during that time as well so I really um you know it's not a hard process there are are a lot of steps there are nine steps but I do have a first-time home buyer master class and confidently closed handbook if you want to take advantage of that it has a lot of videos that go in depth um and also has a lot of checklist through the process that will help you not make any expensive mistakes and please make sure you check out your my checklist on this channel so you know exactly how to confidently buy your first home

Channel: Shaheedah Hill

Views: 91,754

Keywords: Shaheedah Hill, First time home buyer, First time homebuyer, First time home buyer tips, how to buy a house, home buying explained, buying a house, buying a house in 2024, steps to buying a house, buying a house for the first time, first time home buyers, steps to buy a house, how to buy a home

Id: 991Sw9U9nQU

Length: 13min 13sec (793 seconds)

Published: Thu Jan 25 2024