12 Common Steps to Buying a Home

Walking Towards Homeownership

Step 1: Gathering your funds.

When you begin your savings, the goal is to have enough funds to cover your down payment plus closing costs, homeowner’s insurance and taxes, funds for any maintenance or repairs, and any additional fees such as an applicable a homeowner’s association (HOA) or community association fee. As you work with your agent, the agent will check the most recent selling prices for comparable homes and work with you to view listings within your budget.

Step 2: Knowing your credit score.

The higher your credit score, the lower your interest rate. This is the time to stay current on your bills. If you can pay down or pay off any credit cards, do it. Make efforts to clean up any credit blemishes uncovered on your credit score report and address any past inabilities to make a home payment. Use this time to show you are creditworthy.

Step 3: Calculating what you can afford.

According to leading lender, Fannie Mae, buyers should aim to spend no more than 28 percent of their annual income on housing. Expensing more than 30 percent can risk becoming house poor. Remember, a having a budget brings peace of mind when you’re looking at homes. Your agent with work with you to show you listings in your budget range.

Step 4: Getting preapproved.  

Getting preapproved for a mortgage takes all the guess work out of knowing what your lender will approve for your home mortgage. Sellers know when you come with a pre-approval you are a serious buyer and they will take your offer seriously. Lenders want your business so don’t hesitate to shop around with various lenders to get the best deal.

Step 5: Making your home wish list.

One of the first questions your agent will ask you is, “What are you looking for in a home?” Consider the number and size of rooms, layout, neighborhood location, and all of the details which are important to you. Think about which items on this list you could compromise on and which are your must-haves. Colors of rooms can easily be changed. Finding your ideal home in a great neighborhood but with fewer bedrooms than needed, could be a dealbreaker.  

Step 6: Choose a REALTOR®.

Seek out an experienced real estate professional who understand the neighborhoods and communities you’re most interested in. As your agent, I will listen to you and seek to understand your needs. I make myself reachable and promise to bring my knowledge of the market to you. As your agent, I’ll guide you through all the details and processes while always keeping your best interest forefront.

Step 7: Visiting homes.

This is the part buyers get excited about and rightfully so. I encourage buyers to take photos and make notes about what you like and dislike about each house. Take notice of which amenities are nearby. Will this home be close to schools, parks, shopping, and restaurants which are important to you?

Step 8:  Narrowing down your choices.

When you narrow it down to two homes it’s time to start looking more closely at which home makes better sense for you and your lifestyle. Visit the neighborhood during the day and at night to gauge traffic, noise, and the overall feel of the living on this street. Test drive the commute. Consider the resale value should you plan to sell later on.  

Step 9:  Making your offer.

Your agent will work with you to come in with a solid offer plus discuss what happens should other bids come in. You will have the option to increase your offer or make plans to visit other homes. While this part feels tense, don’t forget your agent is a skilled negotiator and will strive to get the best deal for their clients.  

Step 10: Scheduling a home inspection.

Never skip scheduling a home inspection. This report is one of the most important you can get. Should the report reveal the need for repairs, the repairs may be renegotiated on the selling price to accommodate the found flaws or you may ask the seller to make the repairs.

Step 11: Taking a final walk-through.

Don’t pass on taking a final walk-through the home. Be sure to test the light switches and sockets. Check that windows and doors work. Don’t forget to test the faucets, drains, and toilets.

Step 12: Closing on the sale and planning to move in.

Congratulations on your new home! On closing day your REALTOR® will recommend which needed documents you may need to bring to the signing along with your needed funds. Once you receive your keys, all that is left is moving in and starting to make memories in your new home.

Purchasing a home is one of the biggest investment decisions made in your adult life. It’s important to know what’s required as well as how the steps towards homeownership build on each other. It all begins with saving your money to cover your down payment and ends with moving in to your new home to begin making memories.

I’m here to help you find a great home which includes as many of the things on your wish list as possible. When you’re ready to begin your home search, please schedule an appointment. It’s my pleasure to show you around the Houston area.

Since 2004 Sara Lyn Nguyen continues to bring a wealth of knowledge and expertise about buying and selling real estate around the Houston area to those she serves. Sara is a multi-year award winning REALTOR® and relocation specialist where her clients trust her to have up-to-date information on the real estate market. She has been one of Gary Greene’s Multi-Million Dollar Top Producers and was the #2 Top Producing agent in 2020 citywide. When it’s time to buy, sell, invest, or relocate speak with a trusted professional knowledgeable in the homes and neighborhoods of Fort Bend/Sugar Land and the surrounding region.