Becoming a Homeowner

Here’s a straightforward guide to help you with the home buying process!

  1. Choose a Real Estate Agent – This is a personal decision! So make sure your agent is a good family fit! Check out our blog post about choosing someone that works for your family.
  2. Meet with a Lender – Trust is key! Come up with a budget that you’re both comfortable with.
  3. Start Shopping! View home online and in person, narrow down your favorites, and put in an offer! Don’t get discouraged, and trust the process.
  4. Earnest Money Payment – Your agent and lender should be upfront with you at the beginning about the upfront funds required.
  5. Due Diligence Period – This is the time to schedule a home inspection. If something doesn’t feel right, you’re still able to rescind the offer and get back your earnest money payment.
  6. Contract Period – This is when you are officially entering a legal contact for purchase. All parties are responsible for doing their jobs here before closing can occur.
  7. Homeowners Insurance – Once everything is settled, it’s time to fine a homeowner’s insurance policy.
  8. Appraisal – The lender then orders an appraisal. The bank will only allow you to borrow the money for the amount the home is worth.
  9. Termite/Additional Inspections – Depending on the type of loans and the state of purchase will determine if additional inspections are required.
  10. Clear to Close – After all of the above steps are completed – and met with satisfactory outcomes – the closing process is within reach.

Closing Time!

Submit all required closing costs, sign all of the forms, and take home the keys! Don’t forget to snap a photo with your agent and the SOLD Sign!

How Much Money Do I need to Buy a Home?

Your lender and real estate agent will work to give your their best estimate depending on your situation. Here are all of the places you will need upfront funding when purchasing a home.

  • Earnest Money: VA Loans DO NOT require a down payment. You are however, required to provide earnest deposit money – usually 1% of a home’s cost. This money is credited upon closing.
  • Home Inspection: While not required, an inspection is always recommended. Costs can vary but usually run between $300-500.
  • Appraisal: These are ordered by the lender. A typical amount to budget is $650. Sometimes lenders pay this and charge the buyer in the closing.
  • Closing Costs: These are usually 3-4% of the purchase price but can vary due to insurance, taxes, and lender feeds. If your contract includes seller contributions, that will be subtracted from your closing costs. These are DUE on closing day.

Did You Know?

Don’t let these details put a wrench in your home buying plan.

  • Appliances aren’t always included!
  • VA Loans take 30-45 days from contract to move in.
  • Closing costs are generally 3% of the loan amount.
  • If interest rates drop, you can refinance for better rates.
  • Initial mortgage payments skip the first month.
  • Insurance and Property Taxes can be added in with your mortgage in an escrow account to help you budget.

Hopefully these steps put your on the path to a successful home buying experience!

Looking for a military-friendly real estate agent in your area to buy or sell a home? Click here to fill out our Military Real Estate Questionnaire and we will help find you an agent that is a great fit or send a us a message.

Looking for a military-friendly real estate agent in your area to buy or sell a home? Click here to fill out our Military Real Estate Questionnaire and we will help find you an agent that is a great fit or send a us a message.