First Time Buyers Guide to Purchasing a Home 

Buying a home can be an intimidating process, especially if you are a first time buyer.  There is more to purchasing a home than going out and finding a house.  There are a whole series of steps a buyer goes through.  Below we have covered the basic steps to give you an idea of the process.  We even put together a time line of the whole process (click the link at the bottom of the page).
1.  The first step is to interview buyers agents.  They will be working for you.  You need to make sure you want to work with them. 
2.  When you find an agent, they should go over a number of things with you including, but not limited to:
      A.  Information About Brokerage Services:  Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents.  This form goes on to explain whom they represent.
      B.  Buyers Representation Agreement:  This is an agreement between you and your agent that he/she will work for you and that you will work exclusively with him/her.  This agreement protects you as well as the agent.
      C.  Identifying Parameters:  Where do you want to live?  In a waterfront community or do you prefer golf?  What kind of home do you want to buy?  A four bedroom, single story with a pool?  Or do you prefer watching the sun set over the water while sitting on your front porch?  This is the time to let your agent know what you will need in your new home, as well as what you want.
      D.  Lenders:  Again this is a good time to interview.  The lender is working for you as well.  Talk to your bank, a mortgage company, a mortgage broker, OR all of them.  They will help you qualify for a loan and this helps when looking at homes - you look in the price range affordable to you.
      E.  Attorney:  In real estate you are dealing with contracts.  These can be difficult to understand at times.  Most of the time the process goes from start to end without the need for an attorney; however, there may be times when it is in your best interest to consult one.
      F.  Starting the search:  There are many places you can look to narrow the selection before you even go out and physically look at houses.  In the age of technology the best place to start is the INTERNET.  Of course we think our website is a great source of information.  We have buttons for new home communities, existing communities divided by city and subdivision, and luxury and custom homes.  Click on the button and you will find the active listings in each of those categories.  You can also look on www.HAR.com and see what is currently available in the surrounding areas.  Realtors also put out lists of homes for sale in the area which is another great place to find information on what is available.
     G.  Lastly, Determine a good time to start looking at homes.  What will work for you?  Can you go during the day, weekends or do evenings work better for you?
3.  After finding the home you would like to purchase, the real work starts.  This is the time you really need an agent working for you.  When writing the offer, there are a multiple of things that your agent will go over with you.  These include, but are not limited to:
      A.  Sellers Disclosure:  This is a 4 page form the seller fills out telling you all about the house.  It will let you know things like what kind of roof it has and how old it is, are there homeowner association fees in the neighborhood and how much are they, are there any known defects, it will tell you all sorts of things about the house.  Your agent can get you a copy to look over.
      B.  Central Appraisal District:  You can find out about the taxes on the home, how much are they and the appraised value of the home.
      C.  Comparative Market Analysis (CMA):  This will show you the price houses have sold for in the past 6 months to a year in that neighborhood.  This helps to determine what kind of offer you should make.
      D.  Will you want to make any changes to the home?  If so what kind of permits will you need?  Your agent can help you with this.
      E.  When do you want to close on the home?  Do you need to move in quickly (3-4 weeks or sooner) or do you need some time?   
      F.  What title company do you want to use?  Your agent is not allowed to steer you toward a particular title company; however, they can offer lists from which to choose.  Additionally, if requested, they can give advice.
      G.  The option period -  This is a period of time, typically 7-10 days which starts upon the execution date of the contract.  During this time you have the unrestricted right to back out of the contract for any reason.  It is also time for you as a buyer to get inspections done.  After the inspections, your agent can negotiate any repairs that you would like completed.  If, during the option period, you change your mind about purchasing the home, you can terminate the contract without losing your earnest money.  The option fee is paid to the seller (typically 1/10 of 1% of the sales price) and either applies to your purchase or should you withdraw from the contract, the seller will keep it.
     H.  Earnest money - This is similar to a down payment on the home.  This money shows the seller you are serious about purchasing the home.  It goes to the title company and is applied to the purchase at closing.  If you back out of the contract after the option period is over, this money typically goes to the seller.
4.  Once the contract is signed by both parties the option period starts.  Again this is the time to get the home inspected.  Once the option period is over, the property goes into pending.  This is the house is appraised for the mortgage company, the title company orders a survey and you get your loan documents in order.
5.  After all of these things are completed, you go to closing.  When all the documents are signed by both parties and the loan is funded, you take possession of the home.  You are now the proud owner of your first home!
                
For a time line of the buying process click  First time buyer time line