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7 Steps to Home Ownership in Alabama

If you are a first time home buyer, this blog is for you! Buying your first home is an exciting milestone, but it can also feel overwhelming. There are many things to consider, from finding the perfect home to securing financing and closing the deal. As a first-time home buyer, it’s important to be well-informed and prepared for the process ahead. Here are our seven steps to help you get started:

1. Determine your budget

Before you start looking at homes, you need to determine how much you can afford to spend on a monthly payment. The first thing to do is to assess your financial situation, including your income, expenses, and any other debts or financial obligations. This will help you understand how much money you have available each month for mortgage payments. A general rule of thumb is that your total housing expenses should not exceed 30% of your gross income. Once you determine a comfortable monthly mortgage payment that fits within your budget, you are ready for step 2!

2. Get pre-approved for a mortgage

Once you have a budget in mind, it’s time to get pre-approved for a mortgage. This will give you an idea of how much a lender is willing to lend you and at what interest rate. Having a pre-approval letter also shows sellers that you are serious about buying a home and can give you an edge in a competitive market.

3. Find the right real estate agent

A good real estate agent can make all the difference when buying a home. Look for an agent who is knowledgeable about the local market and has experience working with first-time home buyers. They can help you navigate the home buying process and provide valuable advice along the way. Housing inventory is still low in our area, so it is also important to look for an agent who will help you find what you can’t find on the market. 

4. Start your search

Now that you have your budget and pre-approval letter in hand, it’s time to start looking at homes. Work with your real estate agent to find properties that meet your criteria, including location, size, and features. Take your time and don’t settle for a home that doesn’t meet your needs or budget.

5. Make an offer

When you find a home you love, it’s time to make an offer. Your real estate agent can help you determine a fair price based on comparable properties in the area. Be prepared for negotiations, and don’t be afraid to walk away if the deal isn’t right for you.

6. Get a home inspection

Before closing on the home, it’s important to get a home inspection. This will identify potential issues with the property and help you avoid costly repairs down the road. If there are significant issues, you may be able to negotiate with the seller or back out of the deal altogether.

7. Close the deal

If the home inspection goes well, it’s time to close the deal. This involves signing a lot of paperwork, including the mortgage agreement and closing costs. Your real estate agent and lender can help guide you through the process.

When you work with us, we promise to do our best to make home buying as fun and stress free as possible. We have been in your spot before, and are familiar with what’s cycling through your mind when making such a big purchase. We would be honored to work with you on your home buying journey when you are ready!

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