Competition among buyers in the Knoxville market has gotten intense, so if you're serious about homeownership, you have to be prepared to move quickly to get the ideal home.
Buying a home is most likely one of the most important decisions you will ever make and most of us go through the home buying process several times as we move on for new jobs, to be closer to family, or deciding where to retire.
Buying a home is also the largest single financial investment you'll most likely make in your lifetime, so getting it right is critical when you consider livability, maintenance and repairs, and resale.
So, here are 10 simple steps to guide you through the home-buying process from selecting the right agent to final contract.
- Select the right real estate agent you feel comfortable with in guiding you through the process. Get a referral from family and friends and then do your due diligence by interviewing a few agents to make your selection. Also, be sure to work with a Realtor. Then you can be sure you're working with someone who is current with industries best practices and lives up to the ethical standards of the profession.
- Choose a lender by asking your Realtor for a recommendation. A Realtor has experience working with mortgage brokers and title companies. Choosing someone to handle the financial part of the home-buying process can seem like an intimidating step, but choosing a lender that is competitive on rates, communicative, and available is key.
- Work on your credit. A good lender will help you clean up any credit score issues that may be standing in the way of loan approval.
- Get pre-approved by your lender. Once pre-approved, you'll know how much of a mortgage you can afford and which houses you should be considering to purchase. Your lender will help you determine the total monthly housing expense including mortgage, utilities, home insurance, HOA fees, and more. Having a pre-approval letter in hand when you're ready to purchase a home adds strength to your offer, which can be an important advantage in this competitive home-buying market.
- Put together a list of "must-haves" in your next home before you go home shopping. For instance, do you want to be within walking distance of parks or restaurants? Do you want space between you and your neighbors? Or is proximity to good schools the most important factor if you have children.
- Go home shopping and take notes on every home you visit. List the pros and cons of what you like or dislike about each home, that way you'll make an informed decision by only considering the homes that meet your needs. Remember, changing things like the color of the bathroom walls is easy and relatively inexpensive compared to remodeling the kitchen or bathrooms.
- Make an offer. Your agent will help you navigate negotiations and come up with a competitive offer. Many times the offer will include details regarding earnest money, and contingencies.
- Get final approval for your home loan. After your offer has been accepted, your lender will work on getting approval for your home loan. Expect for the approval process to take somewhere between 18 and 30 days to be finalized. Note that it is wise to not make any major purchases until after the approval period since this could adversely affect your credit.
- Get a home inspection to ensure that there are no hidden problems before finalizing the purchase of the home. If problems are found, discuss them with the your Realtor and write them into the contract as a contingency factor.
- Closing the home loan. This is where you will meet with the seller along with your agents to finalize the purchase through writing. Be prepared for lots and lots of paperwork. Don’t be afraid to take time to read over everything so that you feel confident about what you are signing. After this part, you will officially be a homeowner!
The Garner Home Team is ready to help guide you through the home buying process. Call us today to set up a free home buyer consultation.