Let’s be honest – Navigating the process of buying your first home can be challenging. From figuring out the financing to finding the perfect property, it can be a cumbersome process. Fortunately for you, that’s where we come in. The experts at Howard Hanna are here to help every step of way. To get started, here are answers to four of the most common home buying questions.
What should I do first?
Browsing homes for sale online is everyone’s favorite part of the home buying experience, but is it the first thing you should be doing?
Unfortunately, it’s not. You’ll get to that part of the process soon enough, but to make sure you’re set up for success down the road, the first thing you need to do is to figure out how much you can afford.
Next, you’ll want to meet with a mortgage lender, such as Howard Hanna Mortgage Services, to get pre-approved for a loan. Ideally, your pre-approval needs to be completed before you even reach out to an agent and before you tour homes for sale. After all, it’s no fun to fall in love with a home you can’t qualify for.
Next up, find the perfect agent to help you purchase your first home. Ask around—it’s likely your friends and family have an agent they would recommend, or browse agents in your local area on HowardHanna.com. You can be confident that all Howard Hanna agents are knowledgeable, up-to-date on current regulations and ready to work for you.
After you contact an agent, set up a time to sit down and review your personal list of wants vs. needs. This will help you and your agent narrow down search criteria and allow you to look at homes that check all of your boxes.
Finally, it’s time to tour homes in person. Make sure to reference your wants vs. needs list as you walk through each property and don’t be discouraged if you have to view multiple homes before you find ‘the one.’
Just to recap, here’s your to-do list:
- Figure out how much you can afford
- Get pre-approved for a
- Select your Howard Hanna real estate agent
- Determine your wants vs. needs
- Begin touring properties
How much will I need for a down payment?
Despite what you may have heard, you don’t need to put a 20% down payment. When it comes to down payment options, first time home buyers need not worry—there’s a loan program out there that will fit your budget. When you contact the team at Howard Hanna Mortgage Services, they will provide you with a list of options including conventional loans, FHA loans and more.
Besides the down payment, what else will I need to pay for?
Beyond your down payment, you’ll need to come to the closing table with a check for your closing costs. Ranging from 2-5% of the total purchase price of your loan, closing costs cover items like attorney’s fees, title fees, pre-paids and escrow, just to name a few.
I’ve heard that the market is tough and I may get caught in a bidding war. How can I best prepare for that scenario?
In 2025, the market will be more balanced. However, lack of inventory and increased demand still make it a sellers’ market.
In a market where there are more buyers than there are homes available—especially for homes priced right and in good condition—it’s possible that several buyers may make an offer on the same home; this is what’s called a multiple offer situation.
Don’t worry—there are many things you can do to make your offer stand out:
First, make sure you’re pre-approved before you submit an offer. If you were following the to-do list we outlined at the beginning, you can go ahead and check this off your list.
Next, make sure to submit a “clean offer,” free from too many contingencies. If you’re not sure what’s too much to ask a seller, consult your Howard Hanna agent. They’ve got a good pulse on the market at all times and will be able to guide you in the right direction.
Finally, make sure you present the best offer possible initially. Again, if you’re not sure of what might be competitive, your agent can help. They’ll be equipped with comparable market data and will be able to guide you as you arrive at comfortable number.
We look forward to working with you soon! Happy house hunting!
