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Buyer's Guide

A Step-by-Step First Time Buyer's Guide

Buying a home is one of the most exciting milestones of your life. To prepare yourself for this moment, you need to know what to expect during the process. This step-by-step first time buyer’s guide created by our team will help reduce the stress of buying a home and help you enjoy the journey as much as possible.

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Step 1: Research

Do you already know where you want to buy? If you want a condo, townhome, or single-family home? Which features do you like and dislike? What’s available on the market now? If you answered no to any of these questions, now is the time to start researching. In addition to looking for homes that interest you, also take note of any changes in asking prices. This could give you valuable insight into housing trends in specific neighborhoods and help you when the time comes to make an offer.

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Step 2: Decide on Your Budget

Notice we said to decide on your budget—not determine how much the mortgage company will give you. In many cases, a mortgage company will pre-approve you for more than you’re comfortable spending, which is why you need to determine the monthly payment you feel comfortable with before talking to a lender. This likely includes doing a full household budget and taking into consideration what changes other than a mortgage payment will occur once you move into your new home. If you’ve lived in an apartment or with roommates, you may overlook new expenses like garbage, water, or HOA fees that could easily blow your budget.

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Step 3: Get Prequalified

Just because you think you can afford a certain payment every month doesn’t mean the mortgage company will agree. Just as they may approve you for too large of an amount, they may also approve you for a lesser amount or deny you a mortgage altogether. Lack of time at a job, insufficient credit, past bankruptcies, or other financial issues can cause major problems when trying to secure a mortgage. Before you get your heart set on a home, talk to a mortgage professional to find out what amount you can qualify for. This will also be an advantage when you make an offer on a home, as some sellers won’t entertain offers from those who aren’t already prequalified for a loan.

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Step 4: Choose a Real Estate Agent

Can you shop for, look at, and ultimately make an offer on a home without a real estate agent? Technically yes, but why would you when it costs you nothing for agents like us to take much of the stress off your shoulders? Not only will we help identify properties you might be interested in, arrange showings, and ultimately handle the offer process, but we also have knowledge of the market that you don’t possess. Finding the perfect home can be a daunting task, this is where our expertise and wealth of knowledge come into play. Let us show you around some homes that meet your dream home criteria so you can find the one that's right for you.

Our goal is to provide you with the most personalized service that is designed to help you buy your dream home

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Step 5: Find the Right Home

This should be the most enjoyable step of the entire process (other than moving in!). We will arrange showings of homes you’re interested in that are within your price range. Take notes about what you like and don’t like, and make sure to pay attention to details. Turn light switches on and off, open and close doors, and run the faucets in various rooms. Don’t limit your inspection to the home itself. Make sure to take time to explore the neighborhood and keep an eye on traffic at certain times of the day, the parking situation, and how close it is to necessities like schools and grocery stores.

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Step 6: Make an Offer

Once you have selected the perfect home, work with your agent to craft a fair offer based on the value of comparable homes on the market. Depending on what the home is listed at and whether the current environment is a buyer’s or seller’s market, your offer may be below, at, or even above the asking price. We will be able to help you negotiate if you receive a counteroffer and reach an agreement. At this point, the house will go into escrow.

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Step 7: Have the Home Inspected

In most cases, your offer will be contingent on having the home inspected to ensure there is no major structural damage or large repairs needed. We can help you arrange this, and you can schedule it within days of making an offer. If there are no major issues, the process goes to step eight. If there is, you can renegotiate your offer based on what needs to be fixed, or you can withdraw it.

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Step 8: Select Your Loan

Now is the time to go back to the mortgage lender who pre-approved or pre-qualified you and choose your mortgage. You will be presented with various options based on your unique financial situation, including fixed-rate, variable-rate, 15-year, 30-year, or special programs such as VA loans or FHA loans. Work with your mortgage lender to select the option you feel the most comfortable with.

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Step 9: Get a Home Appraisal

Your lender will have your new home appraised so they have their independent value of it. The appraisal is to ensure that all parties involved are paying a fair price for the house.

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Step 10: Finish Paperwork

No one looks forward to all the paperwork involved in buying a home, but it’s a necessary part of the process. Fortunately, everything will be arranged by your lender and title company and, when you’re finished, you’ll know you are the legal owner of your new home.

Congratulations!

After signing the final paperwork to complete the purchase, you are now the owner of a new house. It may take a few days for your loan to be funded once the paperwork has been returned to the lender, but once that check is delivered to the seller, you’ll be all set to move into the home of your dreams. 

Client Stories & Experiences

Jon R.

Jon R.

Tracy did an amazing job, both with the sale of our old home and the purchase of our new home. She was very attentive and guided us throughout the process. She truly is one of the best.
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Abby C.

Abby C.

Tracy Farrow Realty is amazing! Tracy and her team were so helpful with finding and sealing the deal on our first home. She was quick to help answer any questions within minutes, set aside whatever she was doing to help us with...
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Ryan R.

Ryan R.

Absolutely outstanding experience with Tracy! From start to finish, she exceeded all expectations in helping us both sell our current home and find our dream property. Tracy's expertise in the market and genuine concern for us ...
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Kim W.

Kim W.

Tracy helped us sale our home, and she was always available when we had any questions. She is a wonderful person and made the process much less daunting than we thought it would be. Tracy and all the staff were great!
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Sheri L.

Sheri L.

Tracy is the epitome of professionalism and knowledge. She is an expert negotiator and always has her client's best interests at heart. She is a leader in the real estate field and I recommend her 100% for all of your real esta...
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Matthew B.

Matthew B.

I have had the pleasure of working with Tracy three times now (buying twice and selling once). She's the best! She will go above and beyond to make the process as smooth as possible, she knows everyone around town and I doubt t...
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Phil S.

Phil S.

If you're looking for a master in real estate who will go above and beyond to ensure a seamless process, look no further than Tracy! We had the pleasure of working with Tracy and from start to finish she demonstrated an unparal...
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Rudolph W.

Rudolph W.

Tracy is a true professional and yet so personable and easy to work with. She follows through and communicates at every step of the sales journey. I highly recommend her to anyone needing a real estate agent in Midland.
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Jay B.

Jay B.

Tracy and her team are by far the best realtors I have ever had a chance to work with, in Midland or beyond. Top Notch!
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Chris S.

Chris S.

Tracy isn’t just another realtor. She is like family. Tracy and her staff are the kindest and most professional people in the business.
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Let’s Find Your Perfect Home Together

Experience the difference of a personalized home search with Tracy Farrow Realty. Our dedicated, super-southern approach ensures that whether you’re buying or selling, you receive the care, attention, and expertise you deserve in Midland TX’s competitive market.

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