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Six Steps To Buying a New Home

A Step-by-Step Guide for First-Time Home Buyers: From Preparation to Closing

A happy couple moving into their new home

Welcome to the Exciting World of Homeownership

Buying your first home is an exciting milestone, filled with anticipation and dreams of creating a place that truly reflects who you are. But, let's face it, the home-buying process can be a bit overwhelming, especially if you're a first-time buyer. That's why we're here to guide you through every step of the way. In this comprehensive step-by-step guide, we will demystify the home-buying process, empower you with knowledge, and ensure that you feel confident as you embark on this exciting journey.


the word Preparation written on a blackboard

Section 1: Preparing for Homeownership

  • Understanding Your Financial Readiness

    • Before you start searching for your dream home, it's essential to evaluate your financial readiness. Take a close look at your income, expenses, and savings to determine how much you can comfortably afford. This step will help you set realistic expectations and avoid any financial surprises down the road. Research the pros and cons of buying vs renting.

  • Assessing and Improving Your Credit Score

    • Your credit score plays a significant role in securing a mortgage with favorable terms and will affect your interest rates (1% interest can be a significant difference in your mortgage payments). Assess your credit score and take steps to improve it if necessary. Paying bills on time, reducing credit card debt, and avoiding new credit applications can positively impact your creditworthiness. If needed, reach out to credit repair companies or ask your Realtor for recommendations, Credit repair can help you get where you need to quickly.

  • Calculating Your Budget and Price Range

    • Knowing your budget is crucial in finding a home that suits your financial situation. Consider not just the mortgage payments but also other expenses like property taxes, insurance, and maintenance costs. Calculating your budget will help you determine a comfortable price range and narrow down your search.

  • Saving for a Down Payment and Additional Costs

    • Saving for a down payment is often a significant hurdle for first-time home buyers. Start saving early and explore options like government programs and assistance for down payment programs. Additionally, keep in mind the extra costs involved in the home-buying process, such as closing costs, moving expenses, and potential repairs or renovations. As a new home buyer, you could qualify for an FHA Loan, which is 3.5% down. It's also safe to save another 3% for closing costs. So if you want to buy a $100,000 home, you'll need around 6.5% (3.5% downpayment + 3% closing costs) of $100,000 which is $6,500. You will need to have that amount in the bank and ready to go. And that's just to be able to close on the home, you'll still need some more money on the side for the move, repairs, furniture, etc.

  • Research the market

    • Stop by some open houses, use the internet to search for homes, and get a general idea about how much homes are going for and what the state of the market is. This will give you an idea of which areas you'd like to search/live in and what kind of homes you'd be able to afford and/ or would be interested in.

Best team ever San Antonio's Realtor Couple

Section 2: Starting the process with the right team

  • Choosing the Right Real Estate Agent

    • A knowledgeable and trustworthy real estate agent can make all the difference in your home-buying experience. Seek recommendations, read reviews, and interview potential agents to find the one who understands your needs, communicates effectively, and has a track record of success. Or even better save your time and hire San Antonio's Realtor Couple.

  • Getting Pre-Approved for a Mortgage

    • Obtaining a pre-approval for a mortgage is a crucial step. It not only helps you determine your purchasing power but also demonstrates your seriousness as a buyer. Work with a reputable lender to get pre-approved, as it provides a competitive edge when making an offer. Your Real Estate agent should be able to give you recommendations for lenders.

  • Understanding Different Types of Mortgages

    • Educate yourself on the various types of mortgages available and choose the one that best suits your financial situation and long-term goals. Factors such as interest rates, loan terms, and down payment requirements should be considered. Your lender can provide guidance in selecting the right mortgage for you.

  • Locking in an Interest Rate and Reviewing Loan Estimates

    • Interest rates can fluctuate, so consider locking in a favorable rate when it aligns with your financial objectives. Review the loan estimates provided by your lender, which detail the loan terms, closing costs, and monthly payments. Take the time to understand the terms and ask questions to clarify any uncertainties.

  • Shop for lenders

    • Do yourself the favor of talking to multiple lenders. Each lender is limited on what they can offer by their company and some lenders are capable to provide you with better programs and/or better terms. So it's always good to talk to at least three lenders and see which one you feel most comfortable with.

Searching for a home

Section 3: Finding the Perfect Home

  • Defining Your Needs vs Your Wants

    • Clearly defining your needs and wants in a home will help streamline your search process. Consider factors such as the number of bedrooms and bathrooms, location, proximity to schools and amenities, and your commute. Prioritize your must-haves and be flexible with the features you can compromise on. Remember, searching will be like using multiple dials, one for each aspect you care about, and when you move one, it will result in another one also moving. For example, a better location means a higher price or an older home, or a smaller home. It's almost impossible to get every single thing you want when you want to stick to a budget.

  • Researching the Neighborhood

    • Researching the neighborhood is essential to learn about the area and ensure that it aligns with your lifestyle and preferences. Look into factors like school districts, safety, proximity to amenities, and future development plans. Online resources, community forums, and your local Real Estate agents can provide valuable insights into different neighborhoods.

  • Working with Your Realtor

    • Collaborate closely with your Realtor to search for suitable properties. Provide them with your preferences and requirements, and they will use their expertise and resources to find options that meet your criteria. Schedule viewings and be prepared to evaluate each home using a checklist to ensure you don't miss any crucial details.

man explaining a contract

Section 4: Making an offer on a home

  • Making an Offer and Negotiating

    • Once you find your dream home, it's time to make an offer. Your Realtor will help you determine a competitive offer price based on market analysis and recent comparable sales. Negotiating with the seller may be necessary, and your agent will guide you through this process to achieve the best possible outcome.

  • Offer getting accepted or rejected

    • Depending on the market, the home, your offer, and how many offers are on the home, you may end up with a winning or a losing offer. Either way, be prepared. If your offer gets accepted, it's not over yet, read on and if it gets rejected, and or loses to another offer, it's not the end of the world, there are many other homes and new homes coming on the market every day. In our career, every time a client couldn't get the home they wanted, they ended up in a much nicer and better home that was just meant for them. Alternatively, your offer may be countered.

  • Counteroffers and negotiations

    • If you've put in an offer that is very close to what the sellers would be interested in going for, they may very well give you a counteroffer. a counteroffer is an opportunity for both the seller and the buyer to find a middle ground. A counteroffer could also be counted again and again and again until both parties reach a satisfactory agreement or either party decides to walk away.

Home inspection and appraisal

Section 5: Offer Accepted - The Home Inspection and Appraisal

  • Understanding the Importance of a Home Inspection

    • A home inspection is a critical step to assess the condition of the property. Hire a qualified home inspector to thoroughly examine the home, identifying any potential issues or hidden problems. This step ensures that you have a clear understanding of the property's condition before proceeding with the purchase. Your Realtor can recommend good and trusted Inspectors. The Inspection takes place during the "Option Period" in most cases unless that period was waived. It's critical that inspection happens quickly and the report is reviewed so you'd be able to renegotiate anything if needed based on the report and during the option period in order for you not to lose your earnest money.

      • Option period: it's a period where you pay an extra non-refundable amount in exchange for the ability to be able to back out of the contract without risking losing your earnest money. Usually $10-15/day but varies from state to state and from one type of property to another.

      • Earnest Money: It's an amount (usually 1% of the total offer price) that is given to the seller but kept in escrow, to show the seriousness of the buyer. this amount is credited to the buyer at closing.

  • Negotiating Repairs with the Seller

    • If the home inspection reveals any issues, negotiate with the seller to address them. Your agent can guide you through this process, helping you request repairs, credits, or adjustments to the purchase price. Finding a resolution that satisfies both parties is crucial for a smooth transaction.

  • Conducting a Home Appraisal

    • A home appraisal is required by lenders to determine the market value of the property. An appraiser will assess the property's condition, location, and comparable sales in the area. Understanding the appraisal process is essential, as it directly impacts your financing options and the final purchase price.

  • Finalizing Your Mortgage Application

    • After your offer is accepted, it's time to finalize your mortgage application. Work closely with your lender to provide all the required documents and information promptly. Double-check the accuracy of the application to avoid delays during the underwriting process.

  • Going through the Underwriting Process

    • During the underwriting process, the lender will review your final financial documents and verify the information provided in your mortgage application. Be responsive to any additional requests from the underwriter, provide the necessary documentation promptly, and meet any conditions specified by the lender.

!!DO NOT BUY ANYTHING ON CREDIT AND/ OR OPEN/CLOSE ANY BANK OR CREDIT ACCOUNTS!!

Closing Day - Signing contracts

Section 6: Closing Day

  • Preparing for the Closing Process

    • As the closing date approaches, ensure that you are well-prepared for the final steps. Review the closing documents provided by your lender and seek clarification on any terms or fees that you don't understand. Coordinate with your Realtor to schedule a final walkthrough of the property before closing.

  • Paying Closing Costs and Other Fees

    • Closing costs include various fees associated with the purchase of a home, such as lender fees, title fees, and prepaid expenses. Make sure you have the necessary funds available to cover these costs. Your lender or closing agent will provide you with a breakdown of the fees beforehand.

  • Completing a Final Walkthrough

    • Before closing, conduct a final walkthrough of the property to ensure that everything is in the agreed-upon condition. Verify that any repairs negotiated with the seller have been completed satisfactorily and that the property is in the expected state.

  • Reviewing and Signing the Closing Documents

    • During the closing, you will review and sign various legal documents, including the mortgage, deed, and other closing disclosures. Take your time to carefully read and understand each document. If anything is unclear, don't hesitate to ask for an explanation from your Realtor or the title closing agent.

Husband and wife moving into home, wife is in a box and husband is pushing her and they're laughing

Congratulations! You are finally a Homeowner

  • Receiving the Keys and Becoming a Homeowner

    • Congratulations! You've reached the final stage of the home-buying process. Once the closing is complete, and all the necessary funds have been transferred, you will receive the keys to your new home. Take a moment to celebrate this milestone and embrace the joy of being a homeowner. Don't forget to thank your Realtor, chances are they've worked really hard for you and if they're really good, chances are they've solved so many issues without you even knowing, but that's their job!

So... recapping the Journey and Extending Our Help

Navigating the home-buying process can be a thrilling yet complex endeavor, especially for first-time buyers, but by following this comprehensive step-by-step guide, you have acquired valuable knowledge and insights to make informed decisions throughout your journey to homeownership.


Remember, it's crucial to be prepared and seek professional guidance. Gabriel and Kristina aka San Antonio's Realtor Couple, are here to assist you every step of the way. As experienced Realtors, we understand the challenges and excitement that come with buying a home. So, whether you have questions, need advice, or are ready to start your home search, we would love to help you make your dream of owning a home a reality.

Reach out to San Antonio's Realtor Couple today, and let's embark on this incredible journey together!


Gabriel and Kristina Zachary

Gabriel and Kristina

The Zachary Team and San Antonio's REALTOR® Couple

Brokered by Phyllis Browning Co.

210-504-5301

info@gabrielandkrisitina.com | Follow us @thezacharyteam

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