First Time Home Buyer Guide

First Time Home Buyer Guide

If you're currently renting, it's time to seriously consider the benefits of buying a home. While renting may offer short-term flexibility, investing in your own property can provide long-term financial security and stability. Unlike renting, where your monthly payments contribute to someone else's investment, buying a home allows you to build equity and own an appreciating asset. Additionally, homeownership offers stability, giving you the freedom to customize and personalize your living space, create a sense of belonging in a community, and establish strong roots. Moreover, as property values increase over time, your home can serve as a solid investment for your future. Don't let this chance pass you by; consider the numerous advantages of buying a home and embark on a journey that will reward you both financially and emotionally for years to come.

In 2023 so far, the average monthly rental price for a 3-bedroom home is $1,900. At those prices, in 3 years you would be paying close to $70k in rent, and that's if there were no rent increases! Imagine if you had used that money to pay your own mortgage. Not only would you have built equity, but your home most likely would have appreciated during this time.

Buying a home can feel overwhelming, but I am here to help! Here's a very basic overview of the home buying process in Tucson:

Increase brand awarThe first step is to talk to a lender

They will take a look at your financial situation and let you know what you can afford, what your payments would look like, or what it would take to get you qualified. Sometimes you will need to pay off debt, or save additional funds before moving forward. A good lender will instruct you on what to pay off first, and have industry specific advice that will help you get into your first home. Did you know that as a first-time buyer, you may qualify for a down payment as low as 3.5%? I have an amazing network of lenders I trust, let me know if you'd like a referral.

The Search

Once you're prequalified, and you have money set aside for your down payment, hiring inspectors, and closing costs, we'll start looking at properties. We can look at homes virtually or in person. Once we find a house that suits your budget and needs, I'll do a comparative market analysis. That's just a fancy way of saying that I will determine what the house will most likely appraise for. That way, we'll know what to offer, and be able to negotiate if possible.

Offer Accepted!

Once we have an accepted offer, we'll deposit your Earnest Money with the title company. The earnest money is usually 1% of the purchase price. This money is applied to the down payment at closing, or returned if we back out of the contract in many situations. Earnest Money communicates to the seller that you are a serious buyer.

Inspection Period

Inspection periods are typically 10 days, and begin the day after we have an accepted contract. During this time, it's your job to look into everything about the home that is important to you. I have a great group of inspectors to choose from. I usually recommend a general home inspection, a termite inspection, and a sewer scope, at the very least. It's up to the buyer to inspect anything they want during this time. While I usually set up and organize the inspections, the buyer pays for them. I will provide the Buyer's Advisory — this provides ideas and resources to help you investigate every aspect of the home and community.
At the end of the inspection period, we will either accept the property as-is, ask for repairs to be done, or cancel the contract. We can also suggest a price reduction or a credit from the seller in lieu of repairs. The seller can do all, some, or none of the repairs we ask for. At that point, it will be up to you to decide if you want to move forward. I will guide you through this negotiation!

Appraisal

The next step is to get the appraisal in. Appraisals are ordered by the lender, and are often required to get the property financed. Most often, the house appraises for the agreed upon price. If the property appraises for over the agreed upon price, we all do a little happy dance. If it appraises for less than the agreed upon price, we have a few options — either the seller can come down in price, or you can pay the difference in the form of an additional down payment. Or, sometimes the seller will come down a little, and you will have to make up the difference from the reduced amount. Or, you can cancel the transaction and get your Earnest Money back.

Throughout the sale, the title company and lender will be communicating with you. It's your job to stay on track and follow their instructions. They are on our team, and will assist you with anything you need help with. They've seen it all!

Closing

Pre-closing walkthrough — we will do this a few days before we close. During this time, we'll make sure the property is the same as you saw it before, and make sure any agreed upon repairs were completed.

Closing day — you will sign paperwork and deposit your down payment. Sometimes you will sign a few days before closing, depending on the situation. Once you and the seller have signed, the property gets recorded. Once we're recorded, the house is yours! I will get the keys to you, and you can move in!

Are you ready to buy your first home? Let me know how I can help! Give me a call — (541) 521-0145.