Are you ready to take the plunge into the real estate market this year? Buying a home is a significant milestone, and it’s essential to navigate this journey without falling into common pitfalls. Here, I’ll walk you through a simple yet comprehensive 7-step process to buying a home in 2024, ensuring you make informed decisions and avoid common mistakes.

Step 1: Get a Pre-Approval

The home buying journey begins long before you pick out your dream home—it starts with financial readiness. Getting pre-approved for a mortgage is a crucial first step. Why start early? It gives you a clear picture of what you can afford and any credit or income issues you need to address. I recommend using a mortgage broker over a bank, as brokers often have your best interests at heart and can help you avoid pitfalls like high payout penalties from big banks. Ensure your pre-approval is fully underwritten, meaning it’s based on verified documents, which solidifies your budget and enhances your buying credibility.

Step 2: Hire a Real Estate Agent

Once you’re financially prepped, it’s time to find a real estate agent. Your agent is your advocate, guiding you through the buying process and safeguarding your interests. It’s tempting to search online or respond to for-sale signs yourself, but a professional agent will save you time and money. They’ll help you avoid common errors, such as buying a property next to a planned highway, which could be detrimental when you decide to sell.

Step 3: Begin Your Home Search

With an agent by your side, you’ll start the actual home search. Define your criteria and stick to homes that match closely to avoid confusion and wasted time. Viewing too many properties can blur your memory of specific features. Use a process of elimination to narrow down your options, allowing you to focus on homes that truly meet your needs and stand out in your search.

Step 4: Write an Offer

Here’s where a great agent proves their worth. Writing a strong offer and negotiating effectively can significantly impact the terms and final price you secure. Ask your agent if they’re willing to negotiate on their commission—not as a way to pay them less outright, but as a test of their negotiation skills. An agent who can’t defend their worth might not fare well in deal negotiations on your behalf.

Step 5: Address Necessary Conditions

When crafting your offer, include conditions like financing and inspection to protect yourself. These conditions allow you to back out if financing falls through or if major issues are discovered during the inspection. In competitive markets, it’s tempting to waive these conditions, but doing so can expose you to significant risks.

Step 6: Secure Your Mortgage

After your offer is accepted, it’s time to finalize your mortgage. If you were thorough during your pre-approval, this should be straightforward. Your mortgage broker will handle the transfer of information to the lender for final approval. Quick submission of any additional required documents can help speed up this step.

Step 7: Close the Deal

The final step involves legal professionals who prepare and review all the necessary documents to officially transfer the home into your name. This is when you finalize your mortgage and sign the contractual papers. Once everything is signed and sealed, you’ll coordinate with your realtor to pick up the keys to your new home.

Wrapping Up

By following these steps, you can approach the 2024 home buying process with confidence. Remember, the key to a successful home purchase lies in preparation and professional guidance. If you’re starting from scratch and need to find trusted professionals like a mortgage broker or real estate agent, feel free to reach out for recommendations.

Embarking on your home buying journey? Ensure each step is carefully planned and executed, and you’ll soon be holding the keys to your new home!