First-Time Homebuyers, What You Should Know

I don't like to think that I have neglected buyers in these posts, but I want to set the record straight - you are important to me too!

A lot of times, a new buyer comes into my life with no experience with the process of buying a home. I love to answer questions, and discuss what this process entails, but I want to do it justice through a general, but concise blog post about some of the ins and the outs. Keep in mind, this is meant for all buyers, as it is a dissection of the process of purchasing a home. Also know that there are many other aspects to this process, so I will do my best to write additional posts in more detail in the future.

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The Timeline

The timeline of purchasing a home varies depending on a number of factors such as type of financing (cash or mortgage?), buyer and seller motivations, and more.

However, there is a general state of affairs that can be followed - it looks like this:

Process Part

Description

Timing

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Property Found; Offer Accepted

Typically, the purchase begins here; after seeking homes with your Realtor, you have finally received an accepted offer from a seller! This would be a good time to formally hire an attorney, mortgage broker, and of course, inspector.

Day 1

Inspection

In most cases, buyers are encouraged to take the time to do an inspection. The purpose here is to determine if anything is wrong with the home (and depending on the inspector, get real insight into HOW to own and maintain a home). This gets negotiated before contracts are signed.

Within 7-10 Business Days of Accepted Offer

Contract Signing

The seller's attorney writes the contract, buyer signs first and adds addendums/makes appropriate changes.  Next, the seller gets it back and makes the changes they are comfortable based on agreements from the inspection.

Within 14 Business Days

Bank Appraisal

Besides Inspection, Appraisal is first time you spend money on this transaction, so I encourage waiting until contracts are signed, but this is a case-by-case decision.

Just After Contract

Mortgage Commitment

If you are obtaining a mortgage, there is likely a contingency where the mortgage company confirms they will give you the money you are seeking. After they have reviewed all of your documentation, confirmed your status at your job, and you credit, they give you a conditional approval. About a week before closing, they issue a 'Clear To Close' indicating the process is complete!

21-30 business days after Accepted Offer

Insurance, Utilities, Change of Address

Within a few weeks of closing, obtaining a homeowner's insurance policy is required, specifically with a mortgage. This is also a good time to set up utilities, change address, and finalize your move. It is a good idea to hire a moving company on or before this time period.

Within 14 Days of Closing

Walk-Through and Closing!

I prefer to do a pre-walk-through a week before closing, eliminating any surprises on closing day (With new mortgage laws, this becomes necessary). Otherwise, your Realtor will suggest a walk-through the morning of closing, or night preceding. Either way, you sit down at the closing table with your attorney, sign mostly mortgage documents, the deed and title, and the home is yours!

45-60 Business Days after Accepted Offer

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Where (and When) To Start

I suggest you begin the buying process 6 months to 1 year before you even look at a single home. This is ideal, and not often the case. Getting your ducks in a row is essential, and this extra time might help you flesh out credit issues, debt issues, and get acclimated to the market, to really understand the price point you will enter.

Otherwise, I would give between 3 and 4 months to find and close on a home, and 5 to 6 months if you have a home to sell. This also depends on your price point and market: If you are buying in a competitive market, more time will be required. For example, in the sub 500k market around lower Fairfield County, give yourself about 6 months for your search, unless you are hyper-realistic with what you want in your future home.

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What to Seek In a Realtor

1. An experienced, full-time Realtor;
   
2. A Realtor that is responsive;
   
3. A Realtor that can find off-market inventory;
   
4. Someone with a proven track record of sales;
   
5. Multiple testimonials would be helpful.
   

Before you get locked into a contract with a family member, a friend, or someone who claims to be able to competently assist you in your purchase, ask questions. Don't blindly trust someone just because they are a friend or family member. I have seen countless, disappointed buyers leave their original family member to work with me, because their expectations weren't managed.

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Tricks and Tips

• Don't go in blindly - Use blog posts and the Internet to really understand the process;
• Work with Realtor/mortgage broker/attorney that will be responsive (ask for a referral);
• The more knowledgeable your Realtor is about the possible inspection issues, the less time you can waste;
• Find a Realtor that is providing more than just MLS options - that is the tip of the iceberg;
• Understand the Money involved in the buying process;
• See it immediately - Especially in certain price points, new homes to the market should be seen that evening, not in a week; if your Realtor doesn't have time for you, find one that does;
  
• Make offers that are realistic - $5k to a buyer is much different than $5k to a seller.
  

I may continue to add points to this article, but remember that this process varies greatly in each state, county, and town. Work with a local Realtor. Don't hire someone without first asking questions about their success and process. Don't just work with your family member because you feel bad. This is business, they need to provide the best service, or else you will end up losing money, and having more stress.

Happy Hunting!

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Call me with questions, I am here to be your guide - your resource.