A Step-by-Step First Time Buyer's Guide

Buying a home is one of the most exciting milestones of your life. To prepare yourself for this moment, you need to know what to expect during the process. This step-by-step first time buyer’s guide created by your agent will help reduce the stress of buying a home and help you enjoy the journey as much as possible.

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Step 1: Research

Do you already know where you want to buy? If you want a condo, townhome, or single-family home? Which features do you like and dislike? What’s available on the market now? If you answered no to any of these questions, now is the time to start researching. In addition to looking for homes that interest you, also take note of any changes in asking prices. This could give you valuable insight into housing trends in specific neighborhoods and help you when the time comes to make an offer.

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Step 2: Decide on Your Budget

Notice I said to decide on your budget—not determine how much the mortgage company will give you. In many cases, a mortgage company will pre-approve you for more than you’re comfortable spending, which is why you need to determine the monthly payment you feel comfortable with before talking to a lender. This likely includes doing a full household budget and taking into consideration what changes other than a mortgage payment will occur once you move into your new home. If you’ve lived in an apartment or with roommates, you may overlook new expenses like garbage, water, or HOA fees that could easily blow your budget.

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Step 3: Get Prequalified

Just because you think you can afford a certain payment every month doesn’t mean the mortgage company will agree. Just as they may approve you for too large of an amount, they may also approve you for a lesser amount or deny you a mortgage altogether. Lack of time at a job, insufficient credit, past bankruptcies, or other financial issues can cause major problems when trying to secure a mortgage. Before you get your heart set on a home, talk to a mortgage professional to find out what amount you can qualify for. This will also be an advantage when you make an offer on a home, as some sellers won’t entertain offers from those who aren’t already prequalified for a loan.

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Step 4: Choose a Real Estate Agent

Can you shop for, look at, and ultimately make an offer on a home without a real estate agent? Technically yes, but why would you when it costs you nothing for an agent like me to take much of the stress off your shoulders? Not only will I help identify properties you might be interested in, arrange showings, and ultimately handle the offer process, but I also have a knowledge of the market that you don’t possess. I may be able to steer you away from certain homes or neighborhoods, suggest hidden gems, or give you pointers that will help you find your dream home for the right price.

My goal is to provide you with the most personalized service that is designed to help you buy your dream home.

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Step 5: Find the Right Home

This should be the most enjoyable step of the entire process (other than moving in!). I will arrange showings of homes you’re interested in that are within your price range. Take notes about what you like and don’t like, and make sure to pay attention to details. Turn light switches on and off, open and close doors, and run the faucets in various rooms. Don’t limit your inspection to the home itself. Make sure to take time to explore the neighborhood and keep an eye on traffic at certain times of the day, the parking situation, and how close it is to necessities like schools and grocery stores.

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Step 6: Make an Offer

Once you have selected the perfect home, work with your agent to craft a fair offer based on the value of comparable homes on the market. Depending on what the home is listed at and whether the current environment is a buyer’s or seller’s market, your offer may be below, at, or even above the asking price. I will be able to help you negotiate if you receive a counteroffer and reach an agreement. At this point, the house will go into escrow.

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Step 7: Have the Home Inspected

In most cases, your offer will be contingent on having the home inspected to ensure there is no major structural damage or large repairs needed. I can help you arrange this, and you can schedule it within days of making an offer. If there are no major issues, the process goes to step eight. If there is, you can renegotiate your offer based on what needs to be fixed, or you can withdraw it.

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Step 8: Select Your Loan

Now is the time to go back to the mortgage lender who pre-approved or pre-qualified you and choose your mortgage. You will be presented with various options based on your unique financial situation, including fixed-rate, variable-rate, 15-year, 30-year, or special programs such as VA loans or FHA loans. Work with your mortgage lender to select the option you feel the most comfortable with.

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Step 9: Get a Home Appraisal

Your lender will have your new home appraised so they have their independent value of it. The appraisal is to ensure that all parties involved are paying a fair price for the house.

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Step 10: Finish Paperwork

No one looks forward to all the paperwork involved in buying a home, but it’s a necessary part of the process. Fortunately, everything will be arranged by your lender and title company and, when you’re finished, you’ll know you are the legal owner of your new home.

Congratulations!

After signing the final paperwork to complete the purchase, you are now the owner of a new house. It may take a few days for your loan to be funded once the paperwork has been returned to the lender, but once that check is delivered to the seller, you’ll be all set to move into the home of your dreams.

Buyer
Our Client Testimonial
My husband and I had the pleasure of working with Michael when we were looking for our first home in DC. As newbies to the home search process, we had a lot to learn and we were anxious about buying. Michael was patient with us and knowledgeable about the neighborhoods in DC that would be a good fit for us (and our budget). We appreciated the fact that he was always available when we called him for advic...

— Buyer

Allison
Our Client Testimonial
We recently closed on our new home with Michael Seay Homes and we couldn't have done it without them. Mike and Michael Sr. were a fantastic team that ensured our needs were met from day one to closing. They were very resourceful and patient throughout the entire process. We always felt comfortable and confident in our offers and knew that we were in good hands. Mike and Michael Sr. are extremely knowledg...

— Allison

Emily
Our Client Testimonial
I am an agent in Salt Lake City, UT and I just referred a client to Mike Seay. She had a very difficult time with the last agent she had to try and sell her home and she couldn't be more thrilled with her experience working with Mike. He was so patient listening to her and helping guide her through the process. I 100% trust he will help her get her home sold so she can move forward with her life in Utah....

— Emily

Samuel S.
Our Client Testimonial
Michael is a consummate professional. He has deep knowledge of the market in this area and cares about helping people find the right home. Ours is a real gem. We showed up the first day it was listed, fell in love with the house, and made an offer right away. We were first-time homebuyers. Mike explained everything clearly and gave us great advice. He and worked hard to get our first offer accepted. The ...

— Samuel S.

Douglass
Our Client Testimonial
Selling one's home, particularly one you have lived in for 19 years, is without a doubt one of life's most emotional experiences. Your agent is a key person who should bring experience and knowledge about the market most of us do not have. That agent must also be able to understand and care for your emotions during the process. We give Mike Seay high marks in all of these areas. He was knowledgeable. His...

— Douglass

Joy
Our Client Testimonial
Mike was amazing! He took a run-down, rat-infested home and turned it into cash in hand not only cash in hand but above-market cash in hand. Throughout the entire process, he kept me informed, kept it “real”, and didn't mix words. He not only sold my house, but he also helped me find and purchase mine forever home in the middle of a highly competitive market. Mike and his team are wonderful and I highly ...

— Joy

Work With Us

Whether buying or selling a home, you will benefit from our unique and caring approach as well as our extensive knowledge of Washington, D.C. area real estate. Contact us today!