Home Buying Guide

• Compose your home search online.
  • Price Range.
  • Needs, wants & must-haves.
  • Type of home (Residential, Condo, Townhome).
  • Geographic area & neighborhood.
• Consider all of your options and know your trade-offs.
  • Residential vs. Townhome vs. Condo.
  • New construction vs. Fixer-Upper.
  • In-City vs. Suburban.
  • Evaluate local schools.
• Set-up an online search; Make sure you set up alerts for new homes and price changes.
  • Don't miss out. Successful buyers often tour newly-listed homes in the first few days on market.
• Set-up home tours with your agent. Plan to see several before you place an offer. Nothing replaces an in-home tour!
  • Plan your tours in advance. Many homes are occupied and require an appointment.
  • Take notes and photos on your tours. It can be hard to remember everything you've seen.

• Speak with at least 3 lenders and get pre-approved for a loan.
  • Find out what you can afford to buy, and how much of a down payment you will need.
  • Discuss finance options with your lender.
  • Understand how the loan officer is paid and loan fees that you will be responsible for.
• Begin to get your finances in order; put together a budget based on your projected monthly payment.
  • Don't forget ongoing maintenance costs for the home.
• Ask your lender to prepare a pre-approval letter that your agent can submit with your offer.
  • An offer without a pre-approval letter is unlikely to be taken seriously by a seller.
• Understand how much cash you will need to close - ask your lender for a Good Faith Estimate.
  • Document all money transfers and don't open any new credit lines until the home is closed.

Further Reading

• Understand the situation.
  • How long has the home been on the market?
  • What is the seller's motivation?
  • Are you competing against other bidders?
  • Make sure you and your agent have seen the home in person.
• Prepare your offer strategy.
  • What's a fair price? Ask your agent to analyze recent sold properties in the area.
  • What contingencies should you include in your bid?
  • How will you need to improve your offer to compete against other bidders?
• Plan to spend about an hour with your agent reviewing the paperwork and strategizing your offer.
  • Understand what you are signing.
  • Evaluate risks and trade-offs for various offer terms.
• Be sure to be persistent in your negotiations. Your agent should keep the negotiations moving along (on paper) until both parties are satisfied.
• Be prepared to write an earnest money check at the time of your offer.
  • This is the seller's safety net should you default on the offer.
  • Ask your agent what type of contingencies to put in place to protect your earnest money.

• Ask your agent to prepare a list of timelines required by the purchase & sale agreement.
  • Schedule a home inspection.
  • Apply for your loan.
  • Shop for home insurance.
  • Review the title report.
• Review inspection results and be reasonable when negotiating items that come up during inspection.
  • Consider other types of inspections - sewer, mold, lead paint, etc.
• Is there a Homeowners Association (HOA)?
  • Read through HOA rules, regulations and budgets.
  • Understand if there is litigation, special assessments or rental caps that could affect your ownership of the home.
• Respond promptly to lender requests.
  • Every day you delay documentation to your lender is a potential delay in your closing.
• Be ready for signing.
  • Have your down payment ready.
  • Plan to be in town before closing to sign documents.

Resources

We work with a variety of professionals and contractors that can help with your home. Check our resources list or ask your findwell agent for recommendations.