The 8 steps of the homebuying process
If you are one of many first-time homebuyers in Connecticut taking the leap this spring, you need to know the essentials before beginning the homebuying process.
The homebuying process
1. Are you financially prepared to buy a home?
The most important thing to know is if you are financially prepared to buy a home. You should start early reviewing your finances. Objectively assess your financial situation, including credit score, income, and debts, so you know how much you can afford to pay for a home. Once you have reviewed your finances, contact a mortgage lender to get pre-approved for a loan. This step will give you a clear idea of your budget and strengthen your position as a serious buyer. In today’s housing market, most sellers will not even consider your offer without a pre-approval.
2. What are your homebuying priorities?
The next step in the homebuying process is to define your priorities. You may have heard this described as the must-haves vs the nice-to-haves, but these items are essential. Consider where you’d like to live by researching neighborhoods, schools, amenities, and commute times. Factors like these have a direct impact on your quality of life. In most cases, investing in a home is a long-term commitment, so know what you are getting into.
Less impactful but still important to overall happiness and everyday living are the home features. Make a list of must-have features (e.g., number of bedrooms, yard size, layout) and nice-to-have features (e.g., pool, walk-in closet). Organizing these home features will help you as you begin to visit homes with your realtor or attend open houses.
3. Finding a real estate agent
Next up, find a Connecticut real estate agent. Choose a qualified, experienced real estate agent who knows the local market. They’ll guide you through the process, negotiate on your behalf, and provide valuable insights. The right agent is critical in the home search, so be wary of using someone who is not as focused as a full-time professional realtor. Realtors can provide access to home search platforms so you are alerted of new listings as they become available.
Start searching online to get an idea of available properties. We recommend using the free buyer experience on Homebot. You can sign up securely and access home listings in your price range and at your convenience.
4. Start looking for your new home
Next is the fun part! Start scheduling showings with your realtor. You will want to visit properties in person to assess their condition and suitability. Watch out for those online pics. Just like on social media, everyone uses filters and the best lighting.
5. Draft a competitive offer
Once you find the property you want to buy your agent will help you draft a competitive offer. Consider factors like market conditions, comparable sales, and the seller’s situation. In a competitive market, you should prepare the best offer with as few contingencies as possible.
Contingencies are clauses buyers include when making a home offer that protect them and allows them to back out of the deal if the terms are unmet. The contingencies protect your earnest money deposit. Be prepared for counter offers and to negotiate terms such as price and closing date.
6. Get a professional home inspection
As a buyer, you must hire a professional home inspector to evaluate the property’s condition. The report supplied by the home inspector will allow you to address any issues or negotiate repairs with the seller. Mortgage Equity Partners will order an appraisal to ensure the home’s value aligns with the loan amount. Ordering the appraisal is the lender’s responsibility.
7. Finalize your financing
You will then finalize your financing by working closely with your MEP loan officer to complete the mortgage application process. Since you have hopefully already been pre-approved, this process should be much easier.
Your closing agent will order a title search, which ensures the home is free and clear of any liens and can be sold legally. Your closing agent will also assist with securing title insurance. Then, you must secure homeowners’ insurance to protect your investment.
8. Close on your new home
The closing process can be intense, but your team, which includes the loan officer, realtor, and closing agent, will walk you through the details. You will review a closing disclosure, sign the necessary paperwork, pay closing costs, and receive the keys to your new Connecticut home!
Key takeaways
- Prepare financially
- Get pre-approved
- Define your nice-to-haves vs must-haves
- Choose a great team that includes a loan officer, a realtor, and a closing attorney
- Start your home search online and in person
- Make an offer and get it accepted
- Hire a home inspector
- Get an appraisal completed
- Finalize loan approval
- Have a title search completed and get title insurance
- Get homeowner’s insurance
- Close on your new home
- Moving day!
Remember, each homebuying journey is unique. Stay informed, communicate openly with your team, and enjoy the exciting process of finding your dream home and contact a loan officer today!
