First-Time Homebuyer Guide

From “Could we actually buy a house?” to getting the keys.

Buying your first home is exciting. It can also be a little intimidating.

There are loans, inspections, appraisals, contracts, insurance, closing costs and approximately 47 people asking you for documents you didn't know you had.

Don't worry. You don't need to become a real estate expert.

That's our job.

Here's what actually happens between deciding you want a house and getting the keys.

Step 1: Start With the Money

Before spending Saturday afternoon falling in love with houses online, talk with a lender.

We know. Looking at houses is more fun.

Getting pre-approved first tells us what price range makes sense, what your estimated payment might look like and how much cash you'll likely need.

A lender will look at things like:

• Income and employment

• Credit

• Monthly debts

• Available funds for the purchase

• The type of loan that fits your situation

And no, you don't necessarily need a 20% down payment.

Depending on your situation, conventional, FHA, VA and first-time homebuyer programs may allow much smaller down payments. Some buyers may also qualify for down-payment or closing-cost assistance.

A good lender can answer a whole lot of questions before we ever step inside a house.

Step 2: Figure Out What You Actually Want

Now we get to the fun part.

How many bedrooms? Need a home office? Big backyard? Pool? Garage? Certain schools? Short commute? HOA or absolutely-not-under-any-circumstances HOA?

We'll separate your list into must-haves and nice-to-haves.

The perfect house probably doesn't exist.

And if it does, somebody else probably wants it too.

We're looking for the home that best fits your needs, lifestyle and budget—not one that checks 100 boxes.

Step 3: Let's Go House Hunting

We'll set up a home search based on what you're looking for and keep an eye on new listings.

Then we'll go see the good ones.

Try not to judge a house entirely by the listing photos.

We've seen beautiful photos of disappointing houses. We've also walked into homes with terrible photos and wondered, "Why on earth didn't they show THIS?"

When we're touring, we'll help you look past furniture, paint colors and decorating choices and pay attention to the expensive stuff.

Roof. HVAC. Windows. Plumbing. Layout. Condition. Neighborhood. Resale potential.

Paint is cheap.

A roof is not.

Step 4: You Found One. Now What?

When you find the home you want, we'll put together an offer.

Price is obviously part of it, but it's not the only part.

An offer can include:

• Purchase price

• Financing

• Deposit amount

• Inspection period

• Closing date

• Seller concessions toward closing costs

• Other terms specific to the property

We'll look at comparable sales and what's happening in the local market before deciding what to offer and how to structure it.

Getting an offer accepted is great.

Overpaying or agreeing to lousy terms just to get there isn't.

Step 5: Under Contract!

The seller accepted your offer.

Now things start moving.

You'll make your escrow deposit according to the contract, your lender gets to work on the loan and we'll start working through the inspections and other deadlines.

There will be dates to keep track of.

We'll keep track of them with you.

Step 6: The Home Inspection

Your inspector is going to inspect the property from top to bottom and produce a report that may make the house look like it's about to collapse into the earth.

Don't panic.

Inspection reports include everything the inspector finds, from serious problems to relatively minor maintenance items.

We'll help separate:

Things we should actually be concerned about

from

Things you'll probably fix one Saturday after three trips to Home Depot.

Depending on the contract and what the inspection turns up, we may discuss repairs, credits or other options.

→ What to Expect During a Home Inspection in Florida

Step 7: Insurance and the Florida Stuff

Buying a home in Florida comes with a few extra considerations.

Insurance companies may care quite a bit about:

• Roof age

• Electrical systems

• Plumbing

• HVAC

• Wind mitigation features

• Previous insurance claims

Depending on the home's age, you may need a four-point inspection and/or wind mitigation inspection.

This is one reason we pay attention to these things while we're shopping—not three days before closing when everyone suddenly discovers the roof is from the Jurassic period.

We'll also make sure you know when it's time to start getting insurance quotes.

Step 8: The Appraisal

If you're financing the home, your lender will usually order an appraisal.

An appraisal isn't another home inspection. The appraiser is primarily determining whether the property supports the value needed for the loan.

If the value comes in where we need it, great.

If it doesn't, we'll look at the numbers, the contract and the options available.

No need for panic buttons.

Step 9: The Mortgage Paperwork Parade

While everything else is happening, your lender will continue working on your mortgage.

Expect requests for documents.

Then possibly more documents.

Then occasionally a document that looks suspiciously similar to one you already sent.

Respond quickly, and don't make major financial changes without talking to your lender first.

This is not the time to finance a new truck, open three credit cards or buy $12,000 worth of furniture because "the house needs it."

The house can survive without the sectional for another week.

Step 10: Final Walk-Through

Shortly before closing, we'll do a final walk-through.

We're checking that the home is in the expected condition, agreed-upon repairs have been completed and nothing significant has changed since you last saw it.

It's not another inspection.

It's our last look before the house becomes yours.

Step 11: Closing Day

You'll review and sign your closing documents, funds will be transferred and ownership of the home officially changes hands.

Then comes the good part.

You get the keys.

Take the picture. Call your family. Order pizza and eat it on the floor because your furniture hasn't arrived yet.

You just bought your first home.

A Few Things We Want First-Time Buyers to Know

You don't have to know everything before you start.
Most first-time buyers don't. That's why you have professionals helping you.

Your first home doesn't have to be your forever home.
It needs to work for your life and your budget right now.

Don't spend every dollar the lender says you can borrow.
Being approved for a payment and being comfortable with that payment aren't necessarily the same thing.

Keep some money in reserve.
Houses have an uncanny ability to discover your bank account shortly after closing.

Ask questions. Lots of them.
There are no bonus points for pretending you understand something you don't.

Thinking About Buying Your First Home?

You don't need to have everything figured out before talking with us.

Whether you're ready soon or still trying to figure out if buying is realistic, give us a call. We'll talk through where you are, connect you with a trusted lender if you need one and figure out what you need to do next.

No pressure. No real estate vocabulary test.

Just a conversation about getting you into your first home.

Twinhaven Team
LPT Realty
Roger & Aimee Brown

twinhaventeam.com