CUSTOM STEP-BY-STEP FIRST TIME BUYER'S GUIDE
Purchasing a home is a major and thrilling milestone. To make the experience smoother, it’s important to understand what the process involves. This step-by-step guide for first-time buyers, prepared by your agent, is designed to minimize stress and help you fully enjoy the journey to owning your new home.
Step 1: Do Your Research
Before you dive into the market, take some time to narrow down your goals. Do you already have a location in mind? Are you leaning toward a condo, townhouse, or single-family home? Which features are must-haves, and which are deal-breakers? If you’re unsure, this is the perfect stage to explore your options. Browse listings to see what’s out there and pay attention to price fluctuations—tracking these trends can give you a better understanding of specific neighborhoods and prepare you to make a stronger, well-informed offer when the time is right.
Step 2: Set Your Budget
It’s important to decide what you are comfortable spending—not just what a lender is willing to approve. Often, banks may qualify you for more than fits your lifestyle, so take the time to figure out a monthly payment that works for your household. This means creating a realistic budget that factors in not only the mortgage but also the additional costs of homeownership. If you’re moving from an apartment or shared living situation, don’t forget to account for new expenses like utilities, trash service, or HOA fees. Planning ahead will help you avoid surprises and keep your finances on track.
Step 3: Get Prequalified
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Even if you’ve determined what you can afford each month, a lender may see things differently. Factors like your employment history, credit score, or past financial challenges can affect how much you’re actually approved for—or whether you qualify at all. That’s why it’s important to meet with a mortgage professional early in the process to learn what you can realistically borrow. Having a prequalification in hand not only sets clear expectations for your budget but also strengthens your position with sellers, since many won’t consider offers from buyers who aren’t already prequalified.
Step 4: Work With A Real Estate Agent​
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While it’s possible to search for homes and make an offer on your own, partnering with a real estate agent makes the process far easier and less stressful—and it doesn’t cost you anything as a buyer. An experienced agent can guide you through every step: finding properties that match your needs, scheduling showings, navigating negotiations, and handling the details of the offer process. With in-depth market knowledge and expertise, your agent can save you time, prevent costly mistakes, and help you focus on what matters most—finding the home that’s right for you.
Step 5: Discover Your Ideal Home
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This stage is often the most exciting part of buying a home—aside from actually moving in! I’ll coordinate visits to properties that fit your budget and preferences. As you tour each home, pay close attention to what appeals to you and what doesn’t. Test light switches, open and close doors, and run water in sinks and showers to check functionality. Don’t focus solely on the interior—explore the surrounding area as well. Notice the flow of traffic at different times, available parking, and proximity to essential amenities such as schools, shops, and grocery stores.
Step 6: Submit A Strong Offer
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After you’ve found the home that feels just right, your next move is to work with your agent to submit a competitive offer. This should be guided by the prices of similar homes in the area. Depending on the listing price and whether the market favors buyers or sellers, your offer might be below, at, or above the asking price. I’ll assist you in negotiating if the seller responds with a counteroffer so we can reach a mutually agreeable deal. Once accepted, the property will officially enter escrow.
Step 7: Schedule A Home Inspection
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Typically, your offer will include a condition that the home passes an inspection, ensuring there are no significant structural problems or costly repairs. I’ll help coordinate the inspection, which usually takes place just a few days after your offer is submitted. If the inspection reveals no serious issues, we move on to the next step. If problems are found, you have the option to renegotiate the terms of your offer or walk away from the purchase.
Step 8: Choose Your Mortgage
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At this stage, it’s time to reconnect with the lender who pre-approved or pre-qualified you and pick the mortgage that works best for your situation. You’ll have several choices, such as fixed-rate or adjustable-rate loans, 15- or 30-year terms, and specialized programs like VA or FHA loans. Your lender will help guide you through these options so you can select the one that fits your financial comfort level.
Step 9: Arrange A Home Appraisal
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Unlesss this is a cash deal, Your lender will order an appraisal to determine an independent estimate of your home’s value. This step helps ensure that everyone involved is paying a fair and accurate price for the property. In some cases, a lender is able to waive this part of the process. Make sure to ask your lender if that is an option.
Step 10: Complete The Paperwork
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While the paperwork may not be the most exciting part of buying a home, it’s an essential step. Your lender and title company will guide you through all the documents, and once everything is finalized, you’ll officially be the legal owner of your new home.
CONGRATULATIONS ON YOUR NEW HOME!
Once the final documents are signed, the home is officially yours! It might take a few days for the lender to fund the loan, but once the payment reaches the seller, you’ll be ready to move into your dream home and start this exciting new chapter.
The Real Estate Of Mind Co. LLC
​408 S Lafayette Ave, Royal Oak, MI 48067​
(586) 991-1667
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Sine & Monaghan Realtors
​408 S Lafayette Ave, Royal Oak, MI 48067
All information provided herein has been obtained from sources believed reliable, but may be subject to errors, omissions, change of price, prior sale, or withdrawal without notice. Christie’s International Real Estate and its affiliates make no representation, warranty or guaranty as to accuracy of any information contained herein. You should consult your advisors for an independent verification of any properties.
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