Buying a home is one of the most exciting milestones of your life. To prepare yourself for this moment, you need to know what to expect during the process. This step-by-step first time buyer’s guide created by our team will help reduce the stress of buying a home and help you enjoy the journey as much as possible.
Do you already know where you want to buy? If you want a condo, townhome, or single-family home? Which features do you like and dislike? What’s available on the market now? If you answered no to any of these questions, now is the time to start researching. In addition to looking for homes that interest you, also take note of any changes in asking prices. This could give you valuable insight into housing trends in specific neighborhoods and help you when the time comes to make an offer.
Notice we said to decide on your budget—not determine how much the mortgage company will give you. In many cases, a mortgage company will pre-approve you for more than you’re comfortable spending, which is why you need to determine the monthly payment you feel comfortable with before talking to a lender. This likely includes doing a full household budget and taking into consideration what changes other than a mortgage payment will occur once you move into your new home. If you’ve lived in an apartment or with roommates, you may overlook new expenses like garbage, water, or HOA fees that could easily blow your budget.
Just because you think you can afford a certain payment every month doesn’t mean the mortgage company will agree. Just as they may approve you for too large of an amount, they may also approve you for a lesser amount or deny you a mortgage altogether. Lack of time at a job, insufficient credit, past bankruptcies, or other financial issues can cause major problems when trying to secure a mortgage. Before you get your heart set on a home, talk to a mortgage professional to find out what amount you can qualify for. This will also be an advantage when you make an offer on a home, as some sellers won’t entertain offers from those who aren’t already prequalified for a loan.
Can you shop for, look at, and ultimately make an offer on a home without a real estate agent? Technically yes, but why would you when it costs you nothing for agents like us to take much of the stress off your shoulders? Not only will we help identify properties you might be interested in, arrange showings, and ultimately handle the offer process, but we also have knowledge of the market that you don’t possess. Finding the perfect home can be a daunting task, this is where our expertise and wealth of knowledge come into play. Let us show you around some homes that meet your dream home criteria so you can find the one that's right for you.
This should be the most enjoyable step of the entire process (other than moving in!). We will arrange showings of homes you’re interested in that are within your price range. Take notes about what you like and don’t like, and make sure to pay attention to details. Turn light switches on and off, open and close doors, and run the faucets in various rooms. Don’t limit your inspection to the home itself. Make sure to take time to explore the neighborhood and keep an eye on traffic at certain times of the day, the parking situation, and how close it is to necessities like schools and grocery stores.
Once you have selected the perfect home, work with your agent to craft a fair offer based on the value of comparable homes on the market. Depending on what the home is listed at and whether the current environment is a buyer’s or seller’s market, your offer may be below, at, or even above the asking price. We will be able to help you negotiate if you receive a counteroffer and reach an agreement. At this point, the house will go into escrow.
In most cases, your offer will be contingent on having the home inspected to ensure there is no major structural damage or large repairs needed. We can help you arrange this, and you can schedule it within days of making an offer. If there are no major issues, the process goes to step eight. If there is, you can renegotiate your offer based on what needs to be fixed, or you can withdraw it.
Now is the time to go back to the mortgage lender who pre-approved or pre-qualified you and choose your mortgage. You will be presented with various options based on your unique financial situation, including fixed-rate, variable-rate, 15-year, 30-year, or special programs such as VA loans or FHA loans. Work with your mortgage lender to select the option you feel the most comfortable with.
Your lender will have your new home appraised so they have their independent value of it. The appraisal is to ensure that all parties involved are paying a fair price for the house.
No one looks forward to all the paperwork involved in buying a home, but it’s a necessary part of the process. Fortunately, everything will be arranged by your lender and title company and, when you’re finished, you’ll know you are the legal owner of your new home.
After signing the final paperwork to complete the purchase, you are now the owner of a new house. It may take a few days for your loan to be funded once the paperwork has been returned to the lender, but once that check is delivered to the seller, you’ll be all set to move into the home of your dreams.
I met Colm at the Red Hill Dog park. Wonderful conversation. Having a knowledgeable professional on your side is important, I mean, not only knowledge about real estate, but knowledge of the world in general. Colm will be a def...
We started looking for a house here in the Bay Area in November of 2008. For the first several months, we've tried about three different agents, but none of them ever panned out. We initially used ziprealty, then moved on to in...
I'm so glad a friend recommended Colm to me; otherwise, I would have never had the pleasure. I just relocated to San Francisco and knew nothing about the areas or microclimates. I didn't necessarily have a strict wish list, but...
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I am a Ph.D. scientist and a professor at a major institution in the Bay Area. I have been postponing buying a home for ten years. In November 2012, I closed on and bought a house in Berkeley Hills that I am quite pleased with....
I met Colm just as I started looking for a new home in San Francisco. He had a listing I found on Craigslist that was interesting. But it wasn't for me, so Colm and I discussed at length what I was looking for. In short order, ...
Dear Colm: I wanted to reach out at the beginning of the year to thank you. Since we met and listed our property with you, we have had an amazing experience and formed a great relationship with you. The way you listened to u...
I'm so glad a friend recommended Colm to me; otherwise, I would have never had the pleasure. I just relocated to San Francisco and knew nothing about the areas or microclimates. I didn't necessarily have a strict wish list but ...
We met realtor Colm Glass at an open house several months ago, and he impressed us immediately with his professionalism, knowledge, and easy manner (and good humor). Since then, Colm has been very helpful in following up with u...
I was introduced to Colm Glass by a friend and I'm so grateful for that. Colm is wonderful to work with, he is responsive, prompt, always on the pulse, and knows what's happening in all the areas that I'm interested in. He can ...
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An excellent real estate agent.
The Glass Group's passion for people and creative problem-solving, coupled with over 20 years of experience representing buyers and sellers, allows them to create an unparalleled experience for its clients.
