Host: Hey everyone! So, you're ready to buy a house? I'm going to tell you the nine simple steps to buying your first home. It's really not as complicated as it seems, and you should absolutely not be overwhelmed. People who own homes aren't smarter than you, you just need to know exactly what to do and how to do it. I'm here to help! I'm with Bob Hale Realty, and we're dedicated to helping you achieve your dream of home ownership.

We're all about helping you confidently buy your first or even your second home! Now, my list might be a little different from what you find online, because it's based on Bob Hale Realty’s experience in helping hundreds of home buyers achieve their goals. I've learned, after helping so many people confidently buy their first homes, that this is the best way to approach it.

So let's dive in!

Step 1: Determine What You Can Afford
Host: First things first, you need to figure out what you can actually afford before a lender tells you what they’re willing to loan. This is crucial. When you get pre-approved, which is step number four, they’re going to tell you how much they're willing to lend you. This might not be what you can comfortably afford, it's usually much more! So, determine your own budget first. Think about what you can comfortably manage each month. When a lender pre-approves you, they typically only consider bills that show up on your credit report. So they're not seeing all the other expenses you have. Make sure you're determining what you can truly afford first. I have some videos that can guide you on this, I will link them below.

Step 2: Find a Real Estate Agent
Host: Next, you need to find a real estate agent. This is where my list may differ from others online. Don't start shopping for houses just yet! Find an agent first. They can recommend a lender, or at least one they've worked with and have had a positive experience with. I recommend getting pre-approved with at least three lenders! Get referrals from family or friends who have recently bought a home, or look for agents on YouTube or social media who work in your area. Reach out to an agent you're interested in, ask for a lender recommendation, and then hold them to the side while you move on to our next step.

Step 3: Get Organized
Host: Before you get pre-approved, it's time to get organized. You're going to have to apply to three different lenders, and you don't want to be scrambling for information. You'll be putting the same information online three different times, so let's get it all together first! Start pulling together your financial documents, because lenders are going to need a few key things. They'll want to see income documents like pay stubs, tax returns and bank statements and credit report which they'll pull directly using your social security number.. Gather your pay stubs for the last two months, your tax returns for the last two years, and your bank statements for the last two months. I have a video outlining everything you will likely need for your mortgage application, be sure to check that out. Once you are organized, you're ready to get pre-approved.

Step 4: Get Pre-Approved with Three Lenders
Host: Okay, time for pre-approval! Remember, I recommend getting pre-approved with three different lenders. One lender should be a referral from your real estate agent, remember we put them on hold in step 2? That's because agents often have relationships with lenders who are more responsive. So, if your agent recommends them, you will have a better response time. The second should be your current bank or credit union. And the third one, can be a broker or an online lender like Rocket Mortgage. It’s important to shop around to get the best rate and lowest fees. Don’t just go with the first lender you find. Remember, this is likely the largest purchase you'll ever make, so take your time with this. Getting these done within a 14 to 30 day window will only affect your credit once. Be sure to check out my full video on the pre-approval process, the link will be in the description below.

Step 5: Begin Shopping for a Home
Host: Alright! Now that you have your pre-approvals, you know what you qualify for and what you can afford, hopefully going by your budget not just your pre-approval. You're now ready to start shopping for homes with your real estate agent! If this is your first time here, this channel is a great resource. I go live often and have videos on every part of the home-buying process. When shopping for a house be sure to take location into consideration. You want to be in a good neighborhood, because it is likely to increase in value! I have a video on how to find a good neighborhood, you will find the link below!

Step 6: Make an Offer
Host: Now, you've found a house you love, it's time to make an offer. You'll likely negotiate a bit with the seller and then come to a mutual agreement and enter into a binding contract. A binding contract means that both you and the seller have agreed to the terms and signed the paperwork.

Step 7: Due Diligence & Inspections
Host: Once you're under contract, we're moving on to due diligence and inspections. You don't want to buy a house without knowing if there are potential problems. So your agent will make sure you have a due diligence period where you can get the house thoroughly inspected. There are several inspections you can do. During this period you can negotiate for repairs or credits, or you can even walk away. Your real estate agent will help you navigate through this process, I have a lot of videos about the inspection process and negotiating repairs, be sure to check those out.

Step 8: Underwriting & Appraisal
Host: After you’ve decided to move forward with the house, and any negotiations have been made, you enter the underwriting and appraisal phase. Remember that pre-approval from Step 4? Now the lender will take you through a final approval process called underwriting. In this process, they verify all of the information you provided when you initially applied for a mortgage. This includes your employment, salary, and savings. Be sure to be honest from the beginning. It is important that the information you provide is truthful and verifiable. Also, the lender needs to make sure the house is worth the amount you're borrowing. If you're borrowing money, the bank is not going to loan you more than the house is worth. They will send an appraiser to verify the value of the home. If the appraisal comes back lower than the loan amount, you may have to renegotiate with the seller. I have a couple of videos about underwriting, and the reasons why a mortgage loan can get denied after pre-approval so you should definitely check those out.

Step 9: Closing
Host: Finally! You made it! All the hard parts are done. The seller has agreed to sell you the property, the lender has agreed to give you the money, now we're at closing. Closing is when ownership is transferred from the seller to you. Depending on your state, you'll close with a closing attorney or title company. They’ll make sure the title is clear, and you'll sign a bunch of paperwork! Mostly agreeing to pay back the lender. You will also transfer any funds for the down payment and closing costs. It is not a hard process. It does include a lot of steps, there are nine steps! However, if you are interested in a deep dive to help you prepare I have a first-time home buyer master class and a confidently closed handbook that you may be interested in! These are available with a lot of videos, checklists to help you along the way and help you to not make costly mistakes. Be sure to check out my checklist on this channel, so you know exactly how to confidently buy your first home.