Dear AFETT,
I’m interested in purchasing my first property and I think 2025 is my year to make it happen – it’s up on my Vision Board! However, the process feels overwhelming, especially with the legal, financial, and procedural requirements. Could you offer any advice to help me navigate this journey successfully?
Sincerely,
Hopeful Homeowner
Dear Hopeful Homeowner,
“How can they watch me in my face and tell me that I have to look for a house under $600,000 when everybody knows that you need at least a million to buy a property these days?”
I overheard these sentiments expressed by a young to mid-career professional at an event that I attended last year. Ironically, it was an event for youth development.
The desire to achieve the stability and sense of accomplishment that come from property ownership ranks high on many lists of resolutions and goals, especially at the turn of the New Year.
After all, you can’t fully be your own grown person until you’re turning your own key, right?
As young professionals in TT increasingly desire to invest in real estate, understanding the property purchase process is crucial. This process can be complex, involving legal considerations and commitments.
By the time I turned 23, purchasing a property was the single biggest goal on my agenda. I’ve been in your shoes and I know that it can appear a titan task.
Understanding the property purchase process
Purchasing a property typically involves several key stages: identifying and inspecting prospectives, making an offer on a desired choice, conducting due diligence, securing financing, and finally, completing the legal formalities for the purchase.
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When in the market for a property purchase, one of my recommendations would be to get pre-qualified at one or more financial institutions. Start building a credit history and creditworthiness.
One of the more important things about becoming pre-qualified is that you can get an understanding not only for what you can qualify to borrow based on your current financial standing, but also an estimate of the fees and ‘hidden’ costs associated with property purchase. In addition, officers can often provide tips on financial management for improving one’s overall financial standing.
Stages in the process
The first step is finding a property that suits your needs and budget. Once identified, an offer letter outlining the proposed terms of sale is drafted and submitted to the seller.
While the offer letter is usually drafted by the buyer’s attorney or agent, a growing trend is for buyers to write a personal homebuyer’s letter to the seller explaining their reasons for wanting to purchase a particular property. If there is significant interest in the property at the top of your list, this simple step can help to set you apart from the competition.
Key tip: Collate and keep scanned copies of essential documents that you’ll need during the process including IDs, proof
