Buying a home for the first time can be extremely exciting. Knowing how the process works so, you can be prepared before diving in will make your experience smooth. Below are three tips to help you navigate the home-buying process.
First-Time Homebuyer Tip #1: Build your team
Finding a lender you trust is the first step in the home-buying process. They will help you determine what loan product suits your needs the best. The next step is to get pre-approved so that you know your budget. If you plan to use your VA loan, finding a loan officer who is well-versed in VA loans is imperative. A couple of questions you can ask your loan officer to vet them are: “How versed are you in VA loans” and “How long have you been in the mortgage business?” Besides knowledge and experience, ensuring the loan officer has exceptional communication skills is also essential.
It’s essential to ensure you know the ins and outs of how the VA loan process works. I recommend educating yourself before you reach out to your loan officer so that you can ask any additional questions. The Ultimate VA Home Loan Guide is an excellent resource for learning about the VA loan process. You also will want to make sure you qualify for the VA loan; if you are unsure, this is a great resource: 7 requirements for a VA loan
Real estate agents are also a great addition to your team. A good agent will be an expert in the market and know all about the housing inventory, how to compare homes, how to help you construct the best offer to submit to the seller, and negotiate deals if applicable. They will also be there with you from the start signing the closing documents and receiving your keys. Feel free to interview several agents to find one that best fits your needs. You can find great agents through referrals from friends and family, referral networks like ADPI can provide for you, etc.
ADPI has vetted agents across the nation who are investment-minded and experts in their markets. We also have our very own in-house lending team on standby for our ADPI community, and you can connect with them here: https://www.activedutypassiveincome.com/find-agent-or-lender/
First-time Homebuyer Tip #2: Identify Your Criteria
There’s a lot to consider when identifying the criteria for your future home. It’s a big deal! To start, determine where you want to live and narrow it down to the neighborhoods and areas. Is being close to the grocery store, gym, and libraries vital to you? For my family, personally, the community was a big deal. Being a military family is hard when you have to start over making friends every time you move, so having a great community for us was a must.
Next, you’ll need to decide the specifics you are looking for in your home. Examples would be rooms, bathrooms, newer, older, style, how much yard, upgraded or a fixer/add value, etc. You should remember your long-term goal for this home, i.e., your forever home. Something to get you by for a few years and turn it into an investment property? These specifics are essential, so your agent can help narrow your search.
First-time Homebuyer Tip #3 Home inspection/negotiation
Now that you have found your home, it’s time to work with your agent to make an offer! You will work closely with your agent to decide on your offer. This means it’s time to take another look at your budget to see how much wiggle room you have with closing costs, house repairs, appliances, or any repairs/renovations that will have to come out of your pocket. After your agent sends the seller’s agent your offer, they will accept, decline, or come back with a counteroffer. Once you agree and officially enter into escrow, you need a home inspection immediately. Hiring a professional third-party home inspector to perform the inspection is crucial. They will write you a multiple-page report about every detail they noted during the inspection. You want to avoid any unexpected repairs or issues coming up.
These three tips are just a few of many. It’s important to do your due diligence, be prepared, and set yourself up for success before you buy a home!
