Closing day for these first-time buyers that bought their first home in Hampton! We’re at the closing table with our Dream Team—Stephen Baucom (second from right) from Holland Mortgage and Al Caruso (far right) with Oxford Settlement.
Many of our clients are first-time homebuyers. Searching for your first home is filled with excitement and adventure (if house hunting isn’t fun, we’re doing it wrong!), and we love to see clients discover which neighborhoods and home features resonate with them.
Once a buyer finds their perfect house, the 30 - 60 day transaction to make it theirs can feel like riding a rollercoaster in a thunderstorm if they don’t know what to expect! Like we did on our first time around, many of these clients have tons of questions once they’ve found the perfect house:
How much money will it actually cost?
How soon should I have the money ready?
Do I have to pay for everything at once?
What should I do about the inspections?
When can I sign my mortgage documents?
The list goes on and on.
First and foremost, the key to a low-stress real estate transaction is to pick the right players for your team. Over the years we’ve built great partnerships with local Lenders, Title Agents, Inspectors, and any other resource you can think of to make sure our buyers have a great experience buying a home.
To help, we developed a handy day-by-day guide to help first-time homebuyers (and those who need a refresher) understand what they should do after they’ve settled on a home they love.
Your 60-Day Roadmap to Homeownership
Day 1-5
Earnest Money Deposit
Earnest money is typically 1%-3% of the purchase price of the home, and it is held in escrow by one of the real estate brokers or the title company. This money protects the seller in case the buyer either backs out or doesn’t complete their tasks on time, which is why the timelines are so important to the transaction. If you don’t decide to back out of the purchase, this money goes toward your purchase of the home.
Day 1-7
Loan Application (Initial Application)
You’ll work directly with your lender on this, but as realtors, we’re always happy to answer questions when we can. Some steps you should expect in the first week:
Submit lender documents - This proves that you’re financially stable and capable of paying for a home.
Lock rate - This ensures you won’t need to pay extra in the future if the industry rates fluctuate.
Order Appraisal - Your appraisal will check that the amount of money you’re requesting is appropriate given the quality and location of the house.
Once you’ve submitted all of your information, the loan is processed by the lender. After it goes through Underwriting Review, you’ll get a Conditional Loan commitment. Often you’ll need to submit a few more documents to get the loan closed.
Title Search
Day 1-10
This happens almost completely behind the scenes for you, but is an important part of the process. The company you choose for your title search will manage your closing process, and will also do a search to make sure you don’t inherit any liens after closing. Title insurance rates are regulated by the state, so there are only a few fees that vary between companies. Most buyers don’t have strong opinions on who to use for title work, but most realtors and lenders do have strong opinions on this, so make sure to choose a trustworthy title agent for your team!
Inspections
Day 1-10
Buyer’s Due Diligence & Inspection
The seller does their best to disclose as much info as they know about the house, but as a buyer, you have the right and responsibility to do your own inspections. Here are the most common inspections:
Home inspection - this is the big one! First-time buyers should NEVER skip this inspection, which looks at every system of a home.
Pest inspection - this inspection looks for wood-destroying insects that may impact the structural integrity of the home.
Radon inspection - radon is a gas found in the earth that makes its way to homes through the ground. High radon is linked to increased risks of lung cancer, so this is important to be informed on!
Sewer camera test - Surprisingly, this is often the most expensive cost a new homeowner will run into, and is super important to examine in older homes. Sewer line repairs cost between $3,000 - $15,000, so don’t skip this inspection!
Other inspections as needed - depending on your priorities, there may be other inspections, such as surveys, flood insurance, or other items you’ll want to research.
Day 1-30
Insurance
Shop for and select the best policy for your needs. Those needs will fluctuate depending on where you live. For example, you may want to invest in a good flood insurance policy if you’re moving to Millvale. That same policy is less important if you plan to move to someplace like the top of Mount Washington.
Day 15-30
Utilities
Transfer all utilities into the buyer’s name, starting the date of closing.
Day 29 (or 24 hours before closing)
Final Walkthrough
Validate that the seller has completed all negotiated repairs and that the home is in the same condition it was represented to be. If there’s a problem with the house or the repairs, now is the time to address them.
30-60 Days From Transaction Start
Closing
You’ve made it all the way to the end! Your three final steps:
Fund the loan.
Sign all mortgage documents.
Get a house!
Optional last time: Pop the cork on a chilled bottle of champagne!
Still have questions about how to responsibly buy a home? As Pittsburgh’s real estate team, we’re here to help. Contact us at theblocks@theblocksintheburgh.com or 412.926.7976.
Cheers,
Julie & Ted