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The essentialchecklist for firsttime home buyersIf you're feeling overwhelmed trying to understand the processof buying your home, you're not alone. Our step-by-stepoverview can help make sense of the home buying journey.1Determine how much you can affordConsider what your monthly payments are today and what they will beafter you purchase a home. Key factors include:IncomeWhat is your monthly income?Credit scoreDo you pay your bills on time,are in good standing withcredit bureaus or have anyerrors on your credit report?DebtWhat monthly paymentsdo you have (auto,insurance, mortgage)?Closing costsHow much money willyou need at closing?
Median home price by marketMinneapolis, MN 250,200Seattle, WA 471,700Raleigh, NC 264,000San Francisco, CA 920,000Las Vegas, NV 266,800Los Angeles, CA 553,300Boston, MA 448,500Phoenix, AZ 252,600Dallas, TX 246,100Opendoor marketNote: Markets include surrounding metropolitanarea. Source: NAR Q4 2017 Metropolitan MedianArea Prices and Affordability and Housing Index2Atlanta, GA 198,100Orlando, FL 250,000Get pre-approvedGetting pre-approved means that a lender has reviewed your income,expenses, and credit report and has conditionally agreed to loan you a setamount of money for a mortgage. This enables you to look for a home at orbelow that price level with confidence.5 things you’ll need for pre-approvalProof ofincomeProof ion
3Search for a homeChecking online is a fast and convenient way to search for homes. It mayalso help to drive through neighborhoods you’re interested in, talk toyour friends, or consult your agent, if you already have one.How buyersfound the homethey purchasedSource: NAR’s HomeBuyer and SellerGenerational TrendsReport 2017451%Internet34%Agent8%Open houseor yard sign7%OtherFind a realtorMost first-time buyers work with a real estate agent. An experienced agenthas represented numerous buyers in the past and can be your advocatethroughout the process.Most popular ways a home buyer finds an agentThrough a friend52%OnlineOther10%38%Source: Realtor.com
5Visit open houses and tour homesVisiting homes in person can help you identify the features that are mostimportant to you. While it is easy to get emotionally attached to one home,it is likely you will encounter multiple homes that suit your needs. It alsohelps to ask questions and bring a tape measure.Average house searchBuyers typically searched for 10 weeks and looked at an average of 10 homes.Source: National Association of Realtors6Submit an offerYou found your new home and you’re ready to make an offer. Your agentcan help prepare your offer, which includes your offer price, establishingcontingencies, obtaining disclosures, and establishing a closing timeline. Beprepared to negotiate the purchase price if the seller presents a counteroffer.3 tips from Kerry Melcher, General ManagerPhoenix, Opendoor1Submit your offer assoon as you can. Avoiddelaying your offer assomeone else may getin ahead of you.2Don't forgo inspections.Inspections will helpyou understand thehome and any issuesbefore closing.3Submit a strong offeryou are proud of. If it'stoo low, it may be overlooked, if it's too high,you may have regrets.
7Get a home inspectionA thorough home inspection will help you identify any issues with the home anddetermine whether there are repairs that need to be addressed prior to closeand what future projects you may need to take on as the new home owner.What a standard home inspection includesRoof (basic inspection)Windows& doorsVisibleinsulationAtticHVACInteriorplumbing& electricalsystemsFoundation(basicinspection)Walls, ceilings, floorsNot includedSeptic systemAir ductsPests/termitesOdorsIrrigation
8Get an appraisalAn appraisal is an estimate as to the value of your home from a professionalappraiser. Lenders require an appraisal prior to issuing a mortgage.Critical components for an appraisalComps*Square footageAppearanceAmenitiesCondition*Comps is a real estate term for“comparable sales” and refers to prices paid forrecently sold homes that are comparable in size, style and location9RenegotiateIf problems arise during the inspection period, you may be able torenegotiate the home's purchase price to account for any repairs thatneed to be made. If changing the purchase price is not an option,consider asking the seller to pay for repairs.Following inspections, a buyer has three options:1Proceed with norequested repairs(a good option ifissues are minor).2Request repairs. It iscommon to request repairsto bring the home intogood working condition.3If repairs are significantand the seller will notbudge, be preparedto walk away.
10Close the saleOn closing day, all parties will sign the papers officially sealing the deal,and ownership of the property will be transferred to you.Most important docs you’ll signSettlementstatementSummarizes finalfees and charges.The promissory noteThe legal “IOU” with home loanterms, payment dates and wherethey must be sent.The deedTransfers ownership from the sellerto the buyer.Deed of trust or mortgageThe document in which you agree toa lien on your property as security forrepayment of your home loan.Whether you’re buying or selling a home, Opendoor dramaticallysimplifies the process. Browse listings for hundreds of homes for saleonline and visit homes on your own schedule - no appointment needed!Opendoor homes can be viewed daily from 6am - 9pm. Download theOpendoor app at opendoor.com/appFor more home buying tips and real estate insights, check out ourblog at blog.opendoor.comFollow us on Facebook, Twitter or Instagram!One or more employees of Opendoor or its affiliates arelicensed real estate agents, salespeople, or brokers.
Most popular ways a home buyer nds an agent Find a realtor Most irst-time buyers work with a real estate agent. An experienced agent has represented numerous buyers in the past and can be your advocate throughout the process. Search for a home Checking online is a fast and convenient way to search for homes. It may
