First-Time Home Buyers: The Process of Buying a Home

Buying a home can be a complicated and stressful process; not to mention it is most likely the largest financial transaction you will ever undergo (that is, until your next home purchase). 

The most obvious variable you can use to make the process much easier is finding an expert real estate agent.  How do you know if they are expert?  Meet the prospective agent.  The best way to figure out who you want to use as an agent is to sit down with an agent (usually at their office) and go through the Buyer-Consultation.  You should feel a strong trust towards the agent you want to work with, which is why meeting an agent and seeing them in person is important.

A Buyer-Consultation is when an agent and a customer sit down and ultimately for the customer to decide if the agent is a good match for them.  A Buyer-Consultation can last anywhere from 30 minutes to 3 hours based on how many questions the customer may have.  Usually, they last about 45 minutes to an hour.

After the consultation and an agreement has been reached, the real work starts:  beginning the process of finding your home. 


I have listed the process below to give Buyers a context for what to expect.  This is simply a generalized list which is not representative of every transaction.  Though each home-buying process is individualized, below I have provided a general list of what to expect. 

1. Before you find the agent, ask yourself, "Why do I need/want to buy a home?"  You should have a good sense of your answer to this question before you meet with an agent.  
2. Find an expert real estate agent:  With the internet today it seems that buying a house is going to be much easier than it actually is.  Buyers are at a loss if they are not using an agent, most importantly, because a Buyer's Agent usually does not cost money.  The Sellers will pay both the Listing Agent and the Buyer Agent (usually).  Going through the paperwork, the inspections, the financing, the pricing, and the negotiating are not processes a buyer wants to undergo without a real estate agent.  Also, out of the 1 million realtor members of the National Association of REALTORS (NAR), only 20% have a GRI (Graduate of the Realtor Institute).  A GRI qualification exhibits commitment above and beyond those agents who do not have such a qualification.  Ask your agent if they have a GRI
3. Finding a loan:  9 out of 10 first time home buyers finance their purchase, meaning:  They have to get a loan.  This is one of the most important steps in the process:  getting pre-approval through a lender.  An expert real estate agent has a lender list that they can recommend to a client.  The meeting with the lender allows for the client to understand what type of loan program is best for them.  Agents have access to the MLS, which is the most extensive, accurate, and up-to-date database available to only agents.  Trulia, Zillow, and Craigs List cannot compete with an expert Agent's ability to use the MLS thoroughly and efficiently.  And remember, the agent you trust is giving you the best searches for your future home, and they are doing it for free.
4. Now, let's look at homes:  It is now time for the agent and client to view potential homes.  The agent and client have an honest dialogue about which houses they like and which houses they do not like, and why.  This will help the agent understand what houses to show and not to show in the future of the search.  
5. Making an Offer: So you have spent time searching with your agent and have finally found the home you love.  Now comes the offers and negotiations, and this is the point in the process which truly makes you appreciate the agent.  This is the most complicated, personal, and variable part of the process, when sellers and buyers negotiate.  Legal counsel should be present for parts of this process (which the agent should know about) in order for all contracts to be confidently written without mistakes.  
6. Getting Insurance:  There are different types of insurance that are essential for first time homeowners.  Title insurance, Homeowner's insurance, Flood Insurance, and Home Warranties.  These are not the only types of insurance available, but these are the basic types.  Your agent will explain about the different types and how to secure them.
7. The Closing, or "Settlement:"  This process, which used to take place around a table, is now taking place more and more around the computer.  Settlement is a process where all of the necessary paperwork is completed.  Usually closing is done in an office.  
8. Before you move in!  Before moving your stuff into a vacant house, make sure to take pictures or a video of everything the way it is.  You will want to have this as proof of the way the house looked before you start living there.  Insurance providers can help first-time homeowners with advice on what to photograph and video.
9. Keep good care of your home and enjoy it. 

Kevin Poist is willing to help any first time home buyers search for their home in DC, MD, or VA.  Call 202-441-1757 to set up a Buyer's Consultation.

See his website here:  www.HomesInShaw.com

(Note:  To examine the first time buyer process in greater detail, please visit Realtor.com's page regarding Basic Tips for First-Time Home Buyers which information was taken to produce this blog article).