You've decided to take the plunge and pursue the American dream of homeownership. The first thing you should do is speak to a lender and discover your buying power. No point in wasting many a Sunday afternoon at open houses if you can't get a loan, right? I mean, unless you enjoy that sort of thing, then go ahead. Knock yourself out.
But what next? Figure out what you want and where you want it. Drive through neighborhoods that you're interested in on the weekend or in the evening after work. You'll get a real feel for the community. You can also make a trip from the areas you like to your place of employment during rush hour to see what your commute will be like. You might think you like an area, only to find that every weekend the high school marching band back-up reserves practice in the park starting at 7am. Or that your commute will take you 2 hours each way.
Once you've picked an area, it's time to find a competent Realtor and start looking at available properties. Ask friends, family, and co-workers for recommendations. Or call me if you're looking in VA, MD, or DC. (C'mon, I HAD to put in a plug for myself!)
After you've found the home you want, it's time to write an offer. Depending on your situation, there will probably be contingencies. In this current market, I recommend that all my clients include a minimum of a home inspection contingency, financing contingency, and an appraisal contingency. Each situation is different, so be sure to thoroughly discuss all of your options with your Realtor. If there's anything you don't understand, ask questions! We Realtors love to flaunt our knowledge and explain things that might not make sense to you the first time around. It makes us feel important, and who doesn't like that???
Once the offer is accepted in writing by all parties, then the fun really begins. Inspections are scheduled and you'll sign your first born away to the lender. You'll also have to select a settlement attorney, obtain hazard insurance, and let the utility company know you'll be moving. Your Realtor will be able to suggest inspectors, attorneys, and anyone else you'll need to get the deal to the settlement table. If you already have someone you like to work with, that's great. The choice is yours.
Hopefully, you're able to work through all the contingencies, and then a day or two before settlement, you'll do a pre-settlement walk-through inspection. Here, you'll look to make sure that any negotiated repairs have been completed and that the seller did not knock any softball-sized holes in the walls while they were moving. If there are problems, your agent will notify the other party and you'll have some more negotiating to do. Hopefully, this goes smoothly and won't make your ulcer flare up. Or mine.
On the day of settlement, be prepared to sign A LOT of papers. Everything will be explained to you as you go through the paperwork, but ask questions about anything you don't understand. Settlement attorneys do so many closings that they go on auto-pilot through the paperwork, so you're bound to have questions. We want them to feel important, too, so don't hesitate with the questions.
And when it's all over, you'll get the keys to your new home. Then it's off to Lowe's to pick up your new orange day-glo paint for the living room. After all, it's yours now. Do with it what you want.
Tiny Varner is a licensed Realtor® in Virginia, Maryland, and the District of Columbia. She loves her job.
