If you’re feeling overwhelmed trying to understand the process of buying your home, you’re not alone. Our step-by-step overview can help make sense of the home buying journey.

Determine how much you can afford.Consider what your monthly payments are today and what they will be after you purchase a home. Here are some key factors that are include by Chris Sneed Realtor:

Income: What is your monthly income?

Debt: What monthly payments do you have (auto, insurance, mortgage)?

Credit score: Do you pay your bills on time, are in good standing with credit bureaus or have any errors on your credit report?

Closing costs: How much money will you need at closing?

Get pre-approved

Getting pre-approved means, a lender has reviewed your income, expenses, and credit report and has conditionally agreed to loan you a set amount of money for a mortgage. This enables you to look for a home at or below that price level with confidence.

According to Winston Salem Real Estate these 5 things you’ll need for pre-approval:  

Proof of Income

Proof of assets

Good credit

Employment verification

Documentation

Search for a homeChecking online is a fast and convenient way to search for homes. It may also help to drive through neighbourhoods you’re interested in, talk to your friends, or consult your agent, if you already have one. How buyers found the home they purchased

51% Internet

34% Agent

8% Open house or yard sign

7 % Other

Find a realtor

Most first-time buyers work with a real estate agent. An experienced agent has represented numerous buyers in the past and can be your advocate throughout the process.

Most popular ways a home buyer finds an agent

Through a friend: 52%

Online: 10%

Other: 38 %

Visit open houses and tour homes

Visiting homes in person can help you identify the features that are most important to you. While it is easy to get emotionally attached to one home, it is likely you will encounter multiple homes that suit your needs. It also helps to ask questions and bring a tape measure.

Average house search

Buyers typically searched for 10 weeks and looked at an average of 10 homes.

Submit an offer

You found your new home and you’re ready to make an offer. Your agent can help prepare your offer, which includes your offer price, establishing contingencies, obtaining disclosures, and establishing a closing timeline. Be prepared to negotiate the purchase price if the seller presents a counteroffer.

Submit your offer as soon as you can. Avoid delaying your offer as someone else may get in ahead of you.

Don’t forgo inspections. Inspections will help you understand the home and any issues before closing.

Submit a strong offer you are proud of. If it’s too low, it may be over-looked, if it’s too high, you may have regrets.

Get a home inspection

A thorough home inspection will help you identify any issues with the home and determine whether there are repairs that need to be addressed prior to close and what future projects you may need to take on as the new home owner.

What a standard home inspection includes

Visible insulation

HVAC

Interior plumbing & electrical systems

Roof (basic inspection)

Walls, ceilings, floors

Windows & doors

Attic

Foundation (basic inspection)

Not included

Septic system

Air ducts Pests/termites

Odors

Irrigation

Get an appraisal

An appraisal is an estimate as to the value of your home from a professional appraiser. Lenders require an appraisal prior to issuing a mortgage.

Critical components for an appraisal

Comps*

Square footage

Appearance

Amenities

Condition

*Comps is a real estate term for comparable sales” and refers to prices paid for recently sold homes that are comparable in size, style and location

Renegotiate

If problems arise during the inspection period, you may be able to renegotiate the home’s purchase price to account for any repairs that need to be made. If changing the purchase price is not an option, consider asking the seller to pay for repairs.

Following inspections, a buyer has three options:

Proceed with no requested repairs (a good option if issues are minor).

Request repairs. It is common to request repairs to bring the home into good working condition.

If repairs are significant and the seller will not budge, be prepared to walk away.

Close the sale

On closing day, all parties of triad realtor will sign the papers officially sealing the deal, and ownership of the property will be transferred to you.

Most important docs you’ll sign

Settlement statement: Summarizes final fees and charges.

The deed: Transfers owner-ship from the seller to the buyer.

The promissory note: The legal “IOU” with home loan terms, payment dates and where they must be sent.

Deed of trust or mortgage: The document in which you agree to a lien on your property as security for repayment of your home loan.