Purchasing Your First Home in The Woodlands

Home buying can be tricky, especially with your first home. Or maybe you’re upgrading your home and you just need a refresher! It can be a complicated process, but with our steps, we make it more manageable and easy to understand! Let’s begin:

1. Research, research, research!

Start looking at items like home prices, houses for sale, and recent home sales in your selected Woodlands neighborhoods via the internet, newspapers, magazines, etc. Begin paying attention to changes in prices and how long homes stay on the market. This will start to give you an idea of The Woodlands’ current market and home trends.

2. Determine how much house you can afford.

To get an idea of what is considered affordable for you, use a credible mortgage or affordability calculator. These will be able to give you a decent idea of how much of a mortgage payment you can reasonably afford each month after you consider taxes and the type of loan you’re interested in. You may even consider adding to your current savings to gather a larger down payment and closing costs.

3. Hire a Buyer’s Agent.

Make sure you choose a Woodlands Realtor® that you are comfortable with and who routinely helps people buy or sell homes in the area you want. Neighborhood and community knowledge of The Woodlands can make all the difference in finding the perfect home in the right location for you and your family. You’ll also want to consider your agent’s negotiating skills; They will go far in the home buying process and will help you secure your home at an appropriate price.

4. Get Prequalified.

Start with a free credit report. You will want to get any discrepancies resolved so they don’t delay the process. Next, visit a mortgage broker/bank/credit union—your Woodlands Realtor® will have some trusted suggestions if you don’t have an idea of where you would like to go. Your lender will prequalify you and essentially sets your price range as to what they will lend you (officially determining your price range when shopping for homes). If you want to go a step further, you can get preapproved—your lender will verify your income and pull a credit report. This will carry more weight when you try to make an offer on a home.

5. Shop For Your Home.

Start touring homes in The Woodlands in your price range that fit all of your wants and needs. It is often helpful to take notes, pictures or videos to remember any specifics you may mix up between homes later. Pay attention to details and test and touch things as you tour each home to make sure things are functioning. Also take note of the neighborhood – What are the conditions like? Are there one of The Woodlands’ top-rated schools, parks, or shopping plazas nearby? Take your time and find exactly what you are looking for.

6. Make an Offer, Negotiate, Counter Offer.

Sometimes this process can be long and taxing. Work with your agent to find what a reasonable offer would be. If you are lowballing, be sure to have reasons why, such as the electrical is not up to date and will need major repairs, or the roof needs torn off and redone. Expect the seller to counteroffer and continue to negotiate. Eventually, you will come to a price that will satisfy both you and the seller. If not, your home search will continue. If you’re bidding in a competitive buyers’ market, we hope you chose a Realtor® with strong negotiation skills! This is where their negotiating expertise undoubtedly comes into play.

7. Get Your New Home Inspected.

Once your offer is accepted, usually within a few days a home inspection is scheduled. The home is checked for structural issues and larger repairs that need done. Usually your purchase offer is contingent upon the inspection findings, so if there is something major discovered, you may renegotiate or withdraw your offer without penalty. You can also ask that the seller repair certain items  before closing the sale and having a final walk-through to make sure agreed upon repairs are indeed made.

8. Select Your Loan and Get the Home Appraised.

Your lender will help with this! There are many options and some have specific goals in mind such as keeping the mortgage payment steady, having the lowest mortgage rate possible, or putting down no more than 3%. You and your lender will select what is financially best for you. Getting the home appraised will make sure you are paying a fair price for your home. If the appraisal is low, then you now have more options including reducing the price.

9. Get All the Paperwork in Order.

This is a very important step. Your lender may require additional paperwork as you move along. It is crucial to not make any major purchases that acquire new debt while your new home is in escrow, because that can make a difference in getting the loan…or not getting the loan! It can be nerve wracking and time consuming, but these are all things your Woodlands Realtor® will guide you through. And trust us… It is worth it when you are in your perfect, new home!

10. Close!

This is easily the most exciting step! You will sign all the paperwork to finalize your loan, and once the check is delivered to the seller, you can move in! Your sale will be noted in public records and you will receive your deed in the mail. Now onto the real fun… Unpacking and decorating!

Buying a home is one of the most exciting and stressful things you will do in your life! It is, for most, the largest purchasing decision you will ever make. Let Woodlands Eco Realty & Executive Rentals help you through this tedious process and make it as stress-free as possible. Give us a call today for your free buyers consultation: 832-599-8100. Click here to begin searching homes in The Woodlands today!