Written by: Ryan Wise | Senior Loan Officer at Cherry Creek Mortgage First time coming to Colorado Springs? Overwhelmed and not sure what to do? You’re in luck! Here is a list of some of
Step by step process to buying your first house
Dated: April 11 2022
You might be scrolling on Pinterest obsessing over gorgeous homes, decor, and you know exactly what design style you love. Then you go over to your TV and start watching a little HGTV. Before you know it, you’re scrolling Zillow like it’s a part time job.
Look, I get it! Partially why I got into real estate is because I love homes and looking at them too, it’s fun! But here’s the thing, when you start seriously considering the home buying process, Pinterest and HGTV aren’t going to give you the entire road map as to what needs to happen to get to that point. And that’s okay, that’s why you are here reading this post right now!
I’m going to break down the steps you need to know when it comes to buying a house. Moving is stressful enough and I have found that when I’m working with home buyers, the second most stressful thing for them is lack of knowledge. Who is who, what do you actually have to pay, how does this process work, etc.
Let’s make it simple so you can get back to scrolling through beautiful homes and choosing the right one for you!
STEP ONE: Choose your Realtor®
A Realtor® is someone who is licensed in your state to sell real estate and is a part of a board called the National Association of Realtor®. You want a Realtor® and not just a real estate agent because this means they are held to a higher standard of professionalism and performance.
Your agent is the person that will advocate for you throughout the entire process. They can coach you, explain terms to you, and they’ll take you into homes and write the contract when it’s time to submit your offer. They basically do all the heavy lifting and handle the legal things on your behalf! Not only do they do this but they also are the big communicator between you, listing agents, inspectors, title companies, and everyone else in between.
If you tried to do a transaction without your agent, it would be like trying to homeschool yourself when you were eight years old haha. Is it possible? Of course, but it will not be as smooth and enjoyable.
If you’re curious as to how real estate agents actually get paid and if you can afford it, you can watch this short video here that explains how they get paid!
STEP TWO: Choose your Lender
Your Realtor® and lender are the two most important relationships you build in the beginning. You really can go to either one first. But if you have an agent, they’ll have recommendations for you as to what lender to use.
Just like with your agent, it’s important you like the people you are doing business with. You’re going to communicate A LOT with your agent and lender so make sure they are individuals that meet your desires and needs.
Your lender is the person that collects all of the financial information they need in order to decide if you qualify for a loan and then if so, how much. People can sometimes be shocked at everything they have to look into, but remember…if some random person came asking you for $400,000 dollars and said, “don’t worry, I’ll pay you back.” You yourself might do a lot of investigation to make sure they will actually pay you back.
Lenders or also known as mortgage originators have to go through a process that meets a certain requirement in order for them to initiate the funds to you. Once you get your pre-approval from the lender, it’s time to start shopping with your agent!
STEP THREE: House Shopping
Your Realtor® will help you get clear on your goals but it’s important to know what you’re looking for, your time frame, and what are needs versus wants when you’re looking for homes.
If you drag this process out 4+ months, it can become really exhausting and discouraging. But when you know exactly what it is you’re looking for, both you and the professionals working with you can help you execute your plan.
Once you find a home you like, you and your agent will submit an offer. Right now as of 2022, the market of all of the United States is still banging which means it is VERY normal to write offers and not get them accepted. In fact, right now the average home offers submitted before getting accepted is 8. So just keep that in mind.
I love to tell my clients that you can like a house but don’t fall in love with it until we are under contract. Or even safer, until closing day! It’s hard not to get emotionally involved when you’re so excited to buy a home but it’s important to keep your emotions in check or else you’ll be on an emotional roller coaster.
STEP FOUR: Under contract, now what?!
This is the part where buyers are often most confused but we are breaking that today! Once your offer gets accepted from the sellers (literally the sellers will sign the contract which indicates they’ve accepted the offer).
In your contract, there are a lot of dates that were placed in this legal document that are VERY important to follow. Don’t worry, your agent will keep you on top of all of the next steps but this is what’s happening behind the scenes. All legal parties involved are now working hard to hit all the dates and deadlines working hard to get you and the sellers to the closing table at the scheduled time.
A Title company is involved, your agent, the listing agent, the sellers, you as the buyers, your lender, inspectors, and appraisers at the bare minimum are all parties involved having different tasks to get items fully completed for you.
I’m not going to spend this entire post explaining all of the different parties involved and what they do individually but know that when it feels “silent” when you’re waiting to get the keys, everyone is having to get tasks completed so that the title can be transferred to your name legally and smoothly.
STEP FIVE: Closing Day
Congratulations, CLOSING DAY! This is a happy day for everyone. Seller’s get paid, buyers are handed the keys and the official title and all of the hard work is done. There will be a scheduled closing day where you and the sellers will sign the documents necessary to hand over the title. The Title Company is typically the one that hosts this meeting but your Realtor® will be right there with you. Most of the time your lender will try to make it if they can as well. I love when they make it a priority to come because this is a BIG DEAL!
You will sign all docs required for the title and your loan. It typically takes 30 minutes to close on a house. After the signing is complete and you have brought the necessary funds for the house that are due at closing, the house is yours!
As I started writing this blog post, I realized how HARD it is to fit it all in one little post haha so please don’t hesitate to ask me more questions about this process. I know it can be confusing and I love taking the confusion out of it. You can text me any questions at 719-985-1593 and I’ll answer you! If you are looking for a Realtor® in Colorado, please let me know and I’d be honored to help you in your home buying or selling process.
If you need an agent outside of Colorado, I have a huge network of agents I’m connected with and can help you find a Realtor® that will take excellent care of you.
Thank you so much for reading!
Hi, my name is Callie Ammons and I’m a Realtor in the stunning state of Colorado, specifically serving the Colorado Springs area. Growing up in a family with Realtor grandparents, a father who’s a....