What to Expect when Buying a Home

Buying a home for the first time? Here's what to expect from A-Z.

Get Pre-approved

Speaking with a lender is the first and most important step to homeownership.  It's free to get and only requires a few documents to get started.  Provide your recent paystubs, a government photo ID and a soft credit pull (which DOES NOT affect your credit) is done to get your pre-approval letter. 

I recommend all buyers start with a pre-approval because it will give you an understanding of your budget.  Plus, you'll need a pre-approval from a reputable lender to accompany any offer you submit.  A pre-approval will give you a clear understanding of how much you're willing to spend per month along with the ability to move quickly in a competitive market.

We work with exceptional lenders who specialize in loans for first time homebuyers, commonly known as FHA loans, which require as little as 3.5% down.  They also partner with Mass Housing and the City of Boston for downpayment assistance programs.  We can help you find the right loan product to fit your needs so you're paying the least amount out of pocket.

Start your Search

Buying a home is a marathon, not a sprint.  The first stages of looking for your new home will be broad and may include many neighborhoods and towns.   This allows you to compare pricing in different areas as well as the type of home you are qualified to purchase.   

I recommend looking at multiple properties in one day within different neighborhoods.  This will give you a feel for what your budget gets you in different areas.  Once you've formed a preference for a certain area or type of home, we'll narrow down your search accordingly and prepare to view the homes as they hit the market. 

The Offer

You've seen a home you love and are ready to submit an offer!  As your trusted Realtor, part of my obligation to you is to ensure that I give you all the information you need to make an education decision and a GOOD investment.  I want to protect your interest and not see you overpay for any property.  In order to find the true Market Value of the home,  I will run a Comparative Market Analysis, also known as a CMA, to help determine its value.  What this report does is compare similar properties in immediate proximity that have sold within the last 6 months - 1 year.  This will give us an idea of what the home is actually worth so that we can craft a competitive, winning offer.  

All of the offer documents are done electronically.  I'll attach your pre-approval so that the sellers know you have been vetted as a qualified buyer by a reputable lender, as well as an earnest money deposit.  This is typically between $1,000 - $5,000 and if your offer is accepted, the deposit will be held in the Listing agent's escrow account - that's a protected account that the money "sits" in until closing.

Home Inspection 

You did it!  You came prepared and submitted an offer that caught the seller's eye.  If you have elected to perform a home inspection, that will happen within a week.  I'll gladly connect you with some industry experts to ensure the viability of any areas of concern.  If there is anything that comes up during your inspection there are options.  Either the seller fixes the problem before closing, you ask for a credit to fix it yourself at closing, or walk away.  Remember that earnest money deposit you made with the offer?  You'll get that back if you choose to cancel due to an unsatisfactory inspection. 

Purchase and Sale Agreement

Also known as a "P&S", this is the final agreement between the buyer and seller and is signed within 10 days of having your offer accepted. Your second deposit is due when you sign this agreement and it is usually 5% of the purchase price, less the earnest money deposit you submitted with the offer.  The P&S deposit is held in the listing agent's escrow account until closing. 

An attorney who specializes in real estate closings will draft the Purchase and Sale agreement on your behalf.  They usually charge a flat fee for their services that are paid at closing. Part of their obligation is to incorporate any inspection items into the final agreement so that they are satisfied at closing.  If you are purchasing a condominium or a property that's part of a Homeowner's Association (HOA), the attorney will review the rules and regulations, financials, budget and meeting minutes to make sure your purchase will not be adversely affected by the HOA. 

Loan Commitment 

When you get a pre-approval, it is based on your financial qualification to obtain a loan.  However, the lender still has to issue a loan commitment which states that they are willing to give you the loan for that specific property.  One reason a lender may not issue the loan commitment is that your personal financial situation has changed such as loss of work or a drop in your credit score (don't open any new lines of credit when you're buying a home!).  Otherwise, the reason a lender may deny the loan is that the property does not qualify.  This may happen in a condo building that has a lot of debt, or could happen for a single family if the market value does not match the loan amount you are seeking to obtain - this will be uncovered during an "appraisal" where the bank hires a 3rd party expert to assess the market valuation of the home.  The reason being is that the bank is protecting their interest in lending you the money and that it is a good investment. All around, these steps are put into place to protect your interest and deposits.

Clear to Close 

My favorite 3-word saying.  This means that your loan has been fully approved, the money is ready to be sent  from the bank and you're about to become a homeowner!   The lender will send the loan documents to the closing attorney (those folks that helped with the Purchase and Sale) who will give you a call to schedule a time to go to their office for the closing. 

Right before closing, we'll go to the property for a final walkthrough.  This will ensure that the property is vacant, cleared of all the seller's personal belongings, and any requested repairs were completed.   If all looks good, off to the closing you go! 

Once all the documents from the lender and the deed documents are signed, the attorney will send them to the Registry of Deeds for recording.  When we are on "record" the closing has officially been completed and the home is YOURS! I'll give you access to the property so you can get in and make it your own.  Congratulations. 

Get Started

Getting started is the hardest step but I'm here for you. If you're curious about buying a home for the first time but don't know where to start, reach out to me today.  Knowing all the steps is just the start - everyone's goals, journey and timeline towards homeownership looks different.  I look forward to hearing from you and seeing how I can help YOU.

Don’t have a real estate agent yet? Get in touch. I can’t wait to help you buy your first home.