What is the Homebuying Process Like?

The home buying process can be frightening for many people, especially for first-time homebuyers. The uncertainty of what that process really looks like can be stressful for some. 82 percent of home buyers in 2021 fell between the ages of 22 to 30. Of that percentage, it is estimated that 22 percent of those individuals were first time home buyers. So where do these individuals begin their home buying process? Well, thanks to the internet and all the technology we can access, 97 percent of all homebuyers search online for homes at some point in their process. 43 percent of home buyers start their process by shopping online for homes before they even start to contact an agent. The first step for most home buyers is to shop online, then partner with an agent to move forward.

With the market we’ve seen over the last year, an agent is likely going to recommend you get pre-qualified with a lender before looking too deeply into homes. Being pre-approved not only gives you and your agent a better understanding of what you can afford, it also shows potential sellers that you could afford to buy their home. Having that security can give both parties a better chance to make this deal work. The pre-approval process consists of turning in preliminary documents such as W-2’s, pay stubs, bank statements, and tax returns. Being pre-approved is a key step for this process.

From here you need to simply find a home. Work with an agent to have them help show you properties that you are pre-qualified for and find the right home to fit your lifestyle. Once you have found the right one, submit your first offer. It is important to remember that the initial offer won’t always be accepted, especially in a sellers’ market with lots of competition. Do not get discouraged if it does not happen right away. A good agent will help you write an acceptable offer and assist you in negotiations. Once that contract is accepted, it is time to sign the contract and move forward with the process.

After the contracts are signed it is time to order an appraisal, schedule inspections, finalize the title reports, and commit to the current conditions of the home! This process can take several weeks depending on when the closing date will be. Once all the legal work has gone through and you have finally been approved for the mortgage, you are given the clear to close and the closing date is finalized. You are allowed a final walk-though of the property to approve the condition the home is in before you sign. And finally, you go to the closing where you sign the final documents and are given the keys to your new home! Congratulations!!

The Ferguson Team is here to help with any questions you may have about this process. Our agents will work 1 on 1 with you to help understand your wants and needs in a home, and then try to make it happen. Our team takes pride in helping our clients find the right home for them. Give us a call at 417-553-9914 or visit our website fergusonteam.net to get started!