Keller Williams recently produced a great educational and practical first time home buyer brochure called “Your First Home – The Proven Path to Home Ownership.“ These are notes (much paraphrased) from the pamphlet and a link to it if you want to download the “real deal.”
Step 1: Decide to Buy! Above all else, when done right, home ownership can help lay the foundation for a life of financial security. If you are renting and have a stable job with some savings, and a credit score in the upper 600 range, you can likely qualify for a FHA or conventional financing.

An interesting tree root washed up in Cook Inlet
Very few people can afford to buy their dream home when they buy their first home. In fact, according to the National Association of Realtors, 69 percent of first-time home buyers compromised on some features of their first home. So you make some compromises, buy your first home, and start building equity. This approach takes you further and faster down the road to bring able to own your dream home than if you hadn’t purchased a home at all.
Step 2: Hire Your Agent. Your agent will educate you about the market, analyze your wants and needs, guide you to homes that fit your criteria, coordinate any needed professionals, negotiate in your behalf, and all the while check and double-check your paperwork and solve any problems that may arise.
Step 3: Secure Financing. Your lender will approve you for a loan amount, but ultimately, YOU will decide what you are comfortable paying every month. In other words, you don’t have to get a loan as high as you qualify for…you are the boss. When you pre-qualify for a loan, both you and your agent know you aren’t just wasting time; if you find the right property, you can move forward on it.
Step 4: Find Your Home! Your real estate agent will help you sort this out. Which is more critical, size or location? Are you interested in a condo? A duplex? Do you need a yard? You’d like a 3 bedroom, but will two bedrooms work if everything else is good?
Step 5: Make an Offer. This is done in writing on a proper “purchase money agreement”. Your agent will help you decide what a fair offer is. An offer includes several important things such as the price you are offering, when you want to close, a home inspection, who pays what closing costs as well as what things go with the sale like refrigerator or window blinds.
Step 6: Due Diligence. Very few homes are absolutely perfect. This is where you hire a professional to inspect your home, hopefully with you in attendance. The inspectors job is to check for code compliance and for construction problems – large and small.
Step 7: Closing on your home. You’ll need to get home owners insurance and put utilities in your name. Your real estate agent will check your work schedule and look for available appointments with the loan closer. In our market, you sign one day and “record’ the transaction the next day which is the official day you own.
Step 8: Protect Your Investment Learn to give your new home the love and care it needs. you will need to learn to perform routine maintenance on your home’s system, depending on it’s age and condition. A good rule of thumb is to watch for signs of leaks, damage and wear.