An Easy Checklist for First-Time Homebuyers

For most people, a home is the biggest investment of a lifetime. A checklist helps first-
time home buyers stay on track and simplify the selection process. Here, we will look at
the basic steps of purchasing a home.

Find a Real Estate Agent

Though it is not a legal requirement, hiring a real estate agent is a good idea when

purchasing a home for the first time. Agents are trained in all aspects of the process,

and they can help new buyers find properties that fit their budgets. Because they have

the buyer’s best interests in mind, you are sure to find the right home at the right price

when working with a real estate agent.

Set a Budget and Stick to It

Lenders have tightened their requirements, and they will only offer the amount you can

safely afford to pay each month. By figuring out your debt-to-income ratio and using that

information to set a firm budget, you will narrow the search and help your agent find

properties that are in your price range.

Get Preapproved for Financing

The next step when purchasing a home for the first time is to seek mortgage

preapproval, as it helps determine how much you can afford to pay each month. The

preapproval process tells sellers and agents that the buyer is ready and able to seal the

deal, and it gives a buyer’s offers additional weight. It is crucial to note that preapproval

is different from prequalification, which determines a buyer’s creditworthiness and starts

the approval process.

Start the Search for a New Home

After getting preapproved for a mortgage, it is time to start searching for budget-friendly

options. Your real estate agent will evaluate the local housing market and offer insider

knowledge and recommendations. Once you have found a home you like, consider

scheduling a pre-purchase inspection to determine whether there are any major issues.

Make a Fair Offer and Wait for Acceptance

Next, it is time to make an offer. Coming up with a fair offer can be a challenge, but your

real estate agent will help by comparing sales data and local home values. Your agent

also may create an offer letter and send it to the seller or their representative.

Depending on the home’s condition, it may be necessary to request repairs or make the

offer contingent upon an inspection’s results. From there, the seller can accept the offer,

reject it, or make a counteroffer.