What’s The First Step I Should Take When Buying a Home?

Buying a home is one of life’s biggest milestones. It’s exciting, but it can also feel overwhelming if you’re unsure where to begin. Many first-time home buyers think about house hunting right away, but the process begins before you step inside a property. Taking the right first step can make the entire journey smoother and less stressful.

From preparing your finances to working with a real estate agent like Justin Johnson Realty, each step builds on this foundation.

What Are the Key Steps to Buying Your First Home?

As you’re looking at Pickwick Lake homes for sale, it’s essential to go through several steps before closing. This includes setting a budget, obtaining preapproval for your mortgage, hiring a qualified real estate agent, having the home inspected, and obtaining an appraisal.

Having a plan in place removes the guesswork and keeps you from feeling overwhelmed along the way. At Justin Johnson Realty, we believe that knowing what to expect from the very beginning gives you confidence as you move through the journey of homeownership.

Get Pre-Approved for a Mortgage

The very first and most important step in buying a home is securing a mortgage loan pre-approval. Skipping this often leads to disappointment when homes turn out to be out of reach. Talking to trusted mortgage brokers early in the homebuying process helps you understand loan options, potential interest rate ranges, and prepare effectively.

Pre-approval helps in several ways:

Shows sellers you’re serious: In a competitive real estate market, sellers prefer home buyers who a mortgage lender has already vetted. A pre-approval letter can give you an edge if there are multiple offers on the dream home you want.
Set your budget: Instead of guessing what you can afford, a mortgage lender will review your financial details and provide a realistic borrowing amount based on mortgage rates. This helps narrow your search and prevents you from wasting time.
Speeds up closing: Since part of the underwriting process is already completed, being pre-approved means fewer delays once you’ve found the right property.

To get pre-approved, please provide your pay stubs, tax returns, bank statements, and details about your debts. Lenders review income, credit score, employment history, and savings before issuing a pre-approval letter, laying the groundwork for your homebuying journey.

Evaluate Your Finances

Before you apply for pre-approval, it’s essential to take a close look at your finances. A strong financial foundation can improve your chances of approval and help you qualify for a lower interest rate, which can save you a significant amount over the term of your mortgage loan.

Your lender or mortgage broker can also explain how different loan types impact your interest rate over time.

Here are some key areas to focus on:

Credit Score: Your credit score is one of the most important factors lenders consider. Aim for a score of 620 or higher for conventional loans, though FHA loans may allow lower scores. Improving your credit before applying can help you secure better loan terms.
Debt-to-Income Ratio (DTI): Lenders want to see that your monthly debts don’t overwhelm your income. A DTI below 43% is preferred. Paying down credit cards or personal loans can lower this ratio.
Down Payment Savings: Most conventional loans require at least 3% to 5% down, but a larger down payment (10–20%) can help you avoid private mortgage insurance (PMI) and lower your monthly payments.
Closing Costs: You should be aware of what’s included in closing costs. These usually range from 2% to 5% of the purchase price. Having this money set aside prevents financial stress at the end of the home-buying process.

By taking time to strengthen your finances, you’ll enter the pre-approval process more prepared and confident to take advantage of better mortgage rates and market opportunities.

Choose Justin Johnson Realty as Your Real Estate Agent

Buying a home involves numerous moving parts, and having the right agent by your side makes the process significantly less stressful. At Justin Johnson Realty, we provide the local market insight, clear communication, and negotiation skills you need to move forward with confidence.

From understanding neighborhood trends and school districts to helping you identify the best home for your lifestyle, our team is here to guide you every step of the way.

When you work with us, you can expect:

Local Market Knowledge: We understand the communities, values, and hidden opportunities that can help you find the perfect home in the ideal location.
Clear Communication: We keep you updated, answer your questions promptly, and ensure you never feel left in the dark.
Strong Negotiation: Our experience enables us to negotiate fair prices and favorable terms, allowing you to move forward on solid ground.
Personalized Guidance: We take the time to understand your goals and make sure you feel comfortable and supported throughout the process.

At Justin Johnson Realty, we don’t just help you find a house; we help you find the place you’ll proudly call home.

Begin House Hunting

This is where the excitement really begins as you start searching for your future home. With your pre-approval in hand and Justin Johnson Realty by your side, you can feel confident knowing you are focusing on the right properties within your budget. Our team helps you narrow down your options, schedule showings, and notice details that can make a big difference in your decision.

Here is how we make the process easier for you:

Setting Priorities: We help you separate your must-haves such as the right number of bedrooms, location, or garage from your nice-to-haves such as a pool, office, or finished basement.
Exploring Neighborhoods: We are familiar with the local communities and can guide you on commute times, amenities, school districts, and long-term resale value.
Touring Homes Together: We arrange property tours and provide you with clear and honest feedback, enabling you to make informed choices.
Keeping You Grounded: We help you stay flexible and focused so you find a home that meets the most important needs for your lifestyle.

At Justin Johnson Realty, we understand that house hunting can be a time-consuming process. That is why we stay patient and persistent with you, making the process enjoyable and focused on finding the home that feels right for you.

Make an Offer and Negotiate

Once you have found the right property, it is time to make an offer. This step can feel overwhelming, but with Justin Johnson Realty guiding you, the process becomes straightforward and manageable. We carefully review recent sales, study market conditions, and recommend a competitive offer price that fits both your budget and the current market.

We also walk you through the purchase agreement so your terms are clear and favorable. An offer typically includes several important parts:

Purchase Price: The amount you are offering to pay for the home, based on the listing price, market research, and your financial plan.
Earnest Money Deposit: A percentage of the home price, usually between one and three percent, that shows the seller you are serious about moving forward.
Contingencies: Conditions that must be met before the sale can be completed, such as a successful home inspection, approved financing, or an appraisal that matches the purchase price.
Closing Timeline: The schedule for finalizing the purchase, which allows time for inspections, financing, and paperwork before you receive the keys.

Negotiation is often part of this stage, and that is where our experience becomes most valuable. In a competitive market, we can help strengthen your offer and position you ahead of others.

In a buyer’s market, we focus on negotiating for better terms, possible repairs, or closing cost assistance. With Justin Johnson Realty, you always have an advocate protecting your best interests.

Home Inspection and Appraisal

Once your offer is accepted, the next step is due diligence, which includes both the home inspection and the appraisal. During the inspection, a licensed professional evaluates the property for potential issues, including structural concerns, roof condition, plumbing, and electrical problems.

If major issues are identified, we will assist you in determining whether to renegotiate or withdraw. If minor repairs are needed, we advise you on how to address them and what to plan for in the future. Your lender orders the appraisal to confirm the home’s value matches the agreed purchase price. If the appraisal comes in lower than expected, we step in to renegotiate and protect your financial investment.

With Justin Johnson Realty by your side, you are never left to figure out these steps alone. We make sure your interests are protected and that you move forward with confidence, knowing the home you are purchasing is a smart and secure investment.

Closing the Deal

The final stage of the homebuying journey is closing. This is when ownership officially transfers from the seller to you. The closing process typically takes 30 to 45 days after your offer is accepted, though timelines vary.

What to expect at closing:

Final Walk-Through: You’ll visit the property one last time to ensure it’s in the agreed-upon condition and that all necessary repairs have been completed. This step ensures that there are no surprises before you sign your purchase agreement paperwork.
Signing Documents: Expect to sign a large stack of paperwork, including your mortgage agreement, title documents, and other legal forms that transfer ownership. Take your time and ask questions if anything is unclear.
Paying Closing Costs: These may include lender fees, title insurance, settlement fees, and property taxes. Your lender or agent should provide a breakdown in advance so you know exactly what you’ll pay at closing.
Getting the Keys: Once everything is signed and the funds are transferred, you’ll officially own your new home and receive the keys, marking an exciting milestone that signifies the end of the process.

At Justin Johnson Realty, we stay by your side throughout the closing process to answer questions, keep you informed, and ensure the experience is as smooth as possible.

Start Your Homeownership Journey Today!

Buying a home may seem complicated, but it all starts with one simple step: getting pre-approved for a mortgage. Once you have your finances in order and Justin Johnson Realty on your side, the process becomes much more manageable. From house hunting to moving in, each step builds on the foundation you set at the very beginning.

If you’re ready to begin your homeownership journey, don’t go through it alone. We’re here to guide you through every stage, from pre-approval to closing, so you can make confident decisions and find the perfect home.