We're talking the who, what, when, where, and why for first-time homebuyer.

In the video below I’m joined by Jessy Printz of USA Mortgage to help guide you in the process of buying your first home.

The ‘Who’

Besides your realtor, who do you need in the process of buying your first home? You need a lender. We realtors and lenders are a team, and you need to think of us as exactly that. We're all here to be your unofficial welcoming committee to your new home.

In addition to the lender, you might also need a home inspector. You're going to need to get homeowner’s insurance, so you're going to need an insurance person. Additionally, you do get to select the title company or the settlement agent that you would like to use in your contract.

Overall, there is a bunch of people that are all going to come together and be your team to get you across the finish line of buying your first home.

The ‘What’

While buying a home feels like a huge process, it’s easy as long as you follow some key steps. Now that you know the ‘who’ of buying a home, you’ll want to know what you qualify for. Your lender’s job is to help you understand, not just the big picture of what the highest purchase price home you can buy is, but what your monthly budget is.

What are your habits and your hobbies? Do you need to plan for college or a vacation? All of that matters. You also will need money to buy a house. One of the things that a lot of people think is that they can’t afford to buy a house or don't have enough cash on hand. That's the critical piece.

Start a dialogue with a lender first and make sure you have some money in savings. This way, you’ll be able to pay for some of the inspections or appraisals along the process.

The ‘When’

Let’s move on to the ‘when.’ When do you need the cash? This depends on which cash we're talking about. If you're using a mortgage or financing, you're going to have a lot of that cash requirement covered through your loan. However, there are a couple of other things that may come into play.

Earnest Money Deposit

The first thing is called EMD, or earnest money deposit. This is the money that goes into an escrow account. It’s basically good faith money that you're going to take out of your account before you own the house. As long as you don't exit the contract in a place where you're not eligible to do so, that money is yours.

However, that money is actually at risk if you do any type of Runaway Bride scenario where you're not allowed to leave the contract. That money could then potentially go to the seller. This earnest money goes into an escrow account and gets applied to the end of the transaction for money that you're bringing to the table.

Cash Upfront

In addition to your EMD, there’s a little bit of money typically required at the beginning of the transaction. This includes some appraisal costs or other inspections. And if there's a down payment required, the bulk of your money is not really not going to be required until closing.

 This depends on what type of loan you have, how much money you're putting down, and if your closing costs are being paid by you, the seller, or somewhere in between. Your lender can help guide you through that financial part so you know what to expect.

Going Shopping

Let’s talk about a few more ‘when’s. When do you start shopping? Once you're pre-approved, you get to go shopping with me—though that only happens after you’ve done the hard work with the lender. And when do you close and get your keys? Once I’ve provided your lender, Jessy, with your ratified sales contract.

This basically means that you've agreed to the terms for the purchase of a home. We generally see an average of about 30 days to close—sometimes more, sometimes less. It really depends on the loan program. By that point, you should be ready to make your next move.

When should you buy the furniture for your new house? Once you have keys in your hand, the deed is recorded, and we’ve all celebrated at the closing table—but not before. You don’t want to open or even inquire about new lines of credit during your loan process.

The ‘Where’ And The ‘Why

Now let's talk about the ‘where.’ We’re in Northern Virginia right now, and I’m licensed only in the state of Virginia. However, I might have someone looking in the DMV—which includes Washington D.C., Maryland, or Virginia. This means the ‘where’ is kind of important for me as your realtor. I might need to get some help from another agent that's a friend of mine in another state if you're looking outside of where I'm licensed.

What about the ‘why’ of buying a house? One of the best tools for wealth-building stability (even short-term) is when you can fix that mortgage payment. You’ll no longer be subject to the landlord's rent increases or the unknown associated with where you're going to live next year. It really does help to cultivate a better life.

Knowledge Is Power

We hope this provided you with a good framework of the who, what, when, where, and why of buying a house for the first time. Knowledge is power, so you want to have a plan. When you have a process as big as buying a piece of the Earth with a house on it, that fractional ownership of a planet should probably have a pretty good plan around it.

You also want to make sure you're realistic in your expectations. Make a list of your absolute must-haves—but be willing to be flexible. As you're going through that home buying process, you're going to see that location, the size of the house, or the yard in the back will be most important to you. Make sure you come up with very specific expectations of what you absolutely need in the house and what you’d like to have. Hopefully, you're going to get the best of both worlds when you find that property.