Home Buyers Guide - Tips & Insights | June & Co Residential

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.

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.

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.

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.

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. Finding the perfect home can be a daunting task, this is where my expertise and wealth of knowledge come into play. Let me show you around some homes that meet your dream home criteria so you can find the one that's right for you.

Our 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.

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.

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.

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.

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.

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.

Testimonials

Anna B.

My sister and I recently bought our first investment property in Austin. Tom was highly recommended by a friend so we decided to meet with him on a weekend I was out visiting her from LA. As this was our first time delving into...

Sam B.

After recently deciding to relocate from LA to Austin, a friend recommended I meet with Tom to get to know the area. With just a few days to spend in town, Tom was respectful of my time constraints and extremely efficient when ...

Di L.

Tom is very professional and responsive. As an out of state investor, I was able to find my ideal house and close the transaction within one month with Tom's help. He works very hard to make the entire process smooth and easy f...

Susan K.

I was lucky to have worked with Tom when looking for property in Austin. He made the whole process extremely streamlined. He was very forthright with any possible issues, which made me feel like I could trust his expertise. At ...

Misho A.

As a first time buyer, I had the best experience with Tom. He definitely knows what he's doing and he gets things done. He will never try to sugar you up to buy something more expensive or something that doesn't meet your needs...

Michael C.

Tom made our first home buying experience an absolute pleasure! He's fun to work with and very thorough and knowledgeable. This guy knows his stuff! And he's genuine and honest. We probably weren't the easiest of first-time buy...

Jason Y.

Tom was instrumental in helping my parents find their perfect home. He was very knowledgeable of the Austin area and very responsive to emails and phone calls. It was very helpful that he's bilingual (Korean) since my parents a...

James Y.

Tom has a wealth of knowledge in investing and development. He fully understands all aspects of real estate investing and how to create a winning situation for his clients. During my visit in Austin, he showed me several lots a...

Erin N.

Tom is patient, kind and the perfect person to have by your side when looking for a home. He is on top of his game and listens to your needs. I had a really hard time looking for a place, but Tom was right there with me. He sp...

Hilary F.

Tom is super knowledgeable about the area we wanted to purchase in (south austin) and helped us narrow down our search area. My husband was adamant about having a large yard but we didn't think we could find it north of buda. T...

Caitlin N.

We recently sold our home in Austin and had the best experience with Jenny. She made a very daunting and emotional process, simple, easy and less stressful. Her attention to detail, transparency into the process, and organizati...

Sarah R.

Tom Kim is the man! I wanted to work with a competent agent but I ended up making a friend. Tom is amazing, his staff is incredible, and I just can't say enough positive things about my home buying experience. Thank you Tom Kim!

Dennis S.

I've been looking for a few properties in the Austin area as I am looking to relocate there soon. Tom Kim has been an amazing realtor who has helped me understand that Austin area. He's honest and straight forward. I had a coup...

Martin K.

Haven't purchased the home yet, but Tom has been showing me multiple listings for an investment in the Austin area. I've been searching with him for a good 3 months and quite honestly, he's been super patient and understanding ...

Patrick C.

It's rare that I take the time to write a review - when I do, it's because I wholeheartedly believe more people need to be working with them! I was fortunate to meet Jenny at an open house when I was just starting my house sea...

Justine M.

Jenny Kim, aka Realtor of the Year in our books! Words cannot express the gratitude we have for Jenny. Being first time buyers, purchasing a home was intimidating and having Jenny in our corner took a huge load of stress off. S...

Belhassen B.

Buying my first home was new territory and pretty stressful. I am so glad I worked with Tom, I had a smooth and great experience. I am very happy with my purchase and working with him was a pleasure! I rarely write reviews, h...

Alex M.

Jenny was my real estate agent for my first home purchase here in Austin. I cannot recommend her enough. She was extremely knowledgable, professional, and hardworking. It was a huge benefit that she could tap into the builder-e...

Bae Y.

I'm not from the Austin area but was interested in making some investments out of state. Tom's diligence and honesty is what really set him apart from the crowd. He wasn't pushy or in it for himself--he was truly just passionat...

Peyton P.

Working with Jenny made my first home buying experience a breeze! She's super knowledgeable about the Austin market, so professional, easy to work with, and all around an amazing person. Throughout the process she was my best a...

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Jenny & Tom are passionate about working with Buyers & Sellers to achieve their real estate goals. Whether you are looking for a place to call home, or ready to sell and maximize profits, the June & Co Residential group is with you every step of the way. Contact us today to start your real estate journey!

Buyer's Guide