10 Tips for First-Time Home Buyers

First-Time Home Buyers Help

Buying a home is one of the largest financial transactions most people make in their lifetimes. Begin your home buying process with Old Dominion Realty. Our team of trained real estate agents value our customers and are dedicated to ensuring buying your home is easy-to-understand and hassle-free.

1. Choose Your REALTOR®
   Find a REALTOR® whose judgment you trust, who knows the area well, and who understands your needs.
   
   
2. Choose Your Lender
   Select a mortgage lender and get pre-approved. Your lender will help you determine the mortgage amount you can afford and then give you a pre-approval letter. You will receive a good faith estimate from your lender. Remember this is an estimate, and will outline all closing costs, escrow costs and fees paid prior to closing. Your lender should be able to provide you with information on the many types of loans available and 1st time home buyer programs.
   
   
3. Choose an Area Where You Want to Live
   "Location, location, location!" Many home buyers choose a home based on school districts. Other considerations may be access to work, shopping, and transportation. It is important to do research on a particular area prior to viewing lots of homes there or before making an offer on a property. One way to get an idea of what an area is like is to simply tour the area on different days and at different times. You can always make changes to your house but not to your neighborhood.
   
   According to the National Association of Realtors, 84% of home buyers begin their home search online. You can browse real estate and homes for sale right here at Old Dominion Realty. You can also sign up to receive emails about new listings in your area.
   
   
4. Choose the Features You Want in Your Home
   Make a "wish list" of the features and amenities you want in your home. Then give this list to your REALTOR® to use during your home buying process. Your REALTOR® will provide you MLS information on homes that match your criteria. Review these and let your agent know which of them you want to see. Take notes on the MLS sheets provided to you as you view each of the homes.
   
   You will want to consider writing an offer when you find a house that is consistent with your top priorities. Remember, there is no perfect house and seldom does a property have more than 85% of what you want/need.
   
   
5. Make an Offer
   As a home buyers' agent, your REALTOR® will develop a Comparable Market Analysis (CMA), providing a price at what similar properties in the area have listed and sold for in order for you to make an offer on a home. Offer a realistic price for the property and include other terms, conditions, and contingencies you really want or need.
   
   
6. Home Inspection & Other Inspections
   The purchase of a home is most likely the largest single investment you will make. You will want to learn as much as possible about the property condition and any necessary repairs that may be needed before you purchase. A home inspection, although optional, will also provide the positive aspects of a home as well as useful information for maintenance that will be necessary to keep it in good condition. The inspection is generally done right after the contract to purchase has been signed and is typically the buyers' expense.
   
   From the roof to the foundation, a home inspection entails an objective visual exam of the physical structure of a home. This includes an evaluation of the appliances, heating system, central air conditioning system, electrical systems, interior plumbing, visible insulation, walls, ceiling, floors, windows and doors, as well as the foundation and visible structure.
   
   You will want to attend your home inspection. Take time to ask questions as you follow the home inspector during the inspection so you can learn as much as possible. You will be provided a full detailed written report by the home inspector which will be available to you the next working day.
   
   An additional inspection is a termite inspection, which is generally done so you as the buyer will be well informed about the property condition. Some loan programs may require a completion notice from the termite company indicating that the property is free of any damage or active infestation.
   
   
7. Insurance
   Homeowners insurance protects you and your family from someone or something taking away the home you have worked so hard to acquire. Consider insuring your home as an investment in your future. This insurance will protect your home from theft, fire and other liable coverage.
   
   You will need to contact an insurance company as soon as you purchase your home, as this process takes time and you do not want to delay your closing. Your lender will require a paid receipt for the first year of coverage. Flood insurance is an additional insurance that will cover your home from flood damage.
   
   
8. Closing
   Closing usually takes 30 to 60 days to complete and is the process of transferring title of the property to the seller from the buyer. The seller receives payment for the property and the buyer receives title and deed to the property. Closing time depends on successful home inspection completion, buyers' financing ability, and lender conditions such as appraisals, surveys, termite inspections, title search, and title insurance.
   
   
9. Transferring Utilities
   After closing and upon possession of the property, you will need to begin transferring all utilities into your name. As your REALTOR®, we are glad to provide you with a list of the utility companies.
   
   
10. Moving Day/Keys
    Your REALTOR® will coordinate with you to get the keys to your new home. Moving will require a lot of preparation and any tasks and arrangements that can be made ahead of time will make moving day much more pleasant.

It is a good idea to pack one room at a time, labeling each box on the side and top as to the contents and which room the box belongs in. You may want to keep a detailed list of items that are packed in each box. Be sure to label boxes containing your sentimental or breakable items with fragile.