Congratulations are in order now that you've decided to buy a home. Owning a property is a significant milestone for you and your family. For first-time homebuyers, the process of acquiring a home can be exciting and daunting at the same time. To prepare you for the challenge up ahead, read on to learn what steps to take when buying a home.

Step 1. Determine Your Budget

Knowing your budget is vital when narrowing down the list of homes for sale in the market. Part of this step includes determining how much savings you can allot for the home purchase, your current credit score, and how much money you can borrow based on your employment status and financial situation.

A good rule of thumb is to keep in mind the price you're willing to pay and the monthly payments you can afford. You can also talk with several mortgage providers for possible pre-approval of your home loan.

Step 2. Look For An Agent You Can Trust

To make the whole home-buying experience more straightforward, you'll need a reputable real estate agent to help you. If you're looking for a house in British Columbia, Canada, it’d be wise to work with a Coquitlam realtor having extensive experience in the community. The best real estate agents are those who know everything about the local housing market and neighborhood, even areas that aren't easily accessible to the public. Aside from their familiarity with the community, you'll also need someone with top-notch negotiating skills and deep knowledge of the buying process.

Step 3. Start Looking At Homes 

Tell your real estate agent about the things you're looking for in a home so they can come up with options that’ll match your requirements. You can also look for homes on online listing agencies. Just tell your realtor about the homes you’re interested in, including the ones you found on the internet.

Don't feel pressured to acquire the first house that you see. Take your time, consider all options, and look out for red flags when buying a house, including water stains, strange smells, and an outdated HVAC system.

Step 4. Make A Purchase Offer

If you're sure you found the home you want, you're ready to make a purchase offer. It's part of the home-buying paperwork that indicates you're serious about acquiring the house. Your real estate agent can help you make the purchase offer.

Remember that once the seller accepts your offer, it becomes a binding contract that may require earnest money. Before signing the paperwork that your agent or lawyer has prepared, you must ensure that all the details, including contingencies, are in order.

Step 5. Consider Home Inspection

After agreeing to purchase the property, you may need to check the house thoroughly for various issues. Home inspections are conducted by a qualified professional who’ll check the house for any structural defects that may not be visible. They’ll also look for other hidden damages such as foundation problems, leaking pipes, termite infestation, and strange smells, among other things. If an inspector finds a severe issue with the house, you can back out as a buyer, provided your purchase offer has specified this contingency clause.

Step 6. Look For The Best Mortgage

After receiving the home inspection report and finalizing negotiations with the seller, you can submit a home loan application with the lender. Since you’ve already checked your credit score and shopped around for mortgage lenders to determine how much you can borrow, this step won’t be that challenging anymore.

All you need to do is negotiate with different mortgage providers the essential details of the loan such as loan period, amount, and applicable interest rates. Choose one that’ll give you the best deals, which could mean low-interest rates, affordable monthly payments, and other essential provisions.

Step 7. Prepare All Paperwork

Buying a house involves tons of paperwork, so be patient when completing all the documents. Some of the documents you and the seller need to prepare to close the sale include proof of home insurance, title, deed of trust, loan agreement, initial escrow statement, purchase offer, and tax declaration. Coordinate with your agent, lawyer, lender, and seller so everything is in place before scheduling the sale's closing.

Step 8. Close The Sale

It’d help if you had everything signed at closing, including the loan documents. It may take days for the mortgage provider to wire the money to the seller, so be patient. But once the seller receives the payment, you're good to go. You're now the owner of a new home!

The Bottom Line

Acquiring a house isn’t an easy feat as it requires several steps before you can finally move into your new property. To make the home-buying process smooth and stress-free, you may need the help of various parties such as a realtor, lawyer, home inspector, and even the home seller.