Your Guide to Home Buying

Congratulations on starting the home buying process! This guide will be your timeline that will help you navigate each part of the purchase process. We will be providing insights on each step. While you don't need to follow it exactly, we do recommend you carefully consider each step.

Financing or Cash?

No matter if you are going to finance your purchase or pay cash determining how much house you want to buy is the first step in the purchase process.

If you are financing your purchase getting prequalified by a reputable lender is the first and most important step in the purchase process. In order to submit an offer to purchase a home you must have your financing in place and ready to go. The lender will need to review most recent pay statements, bank statements, proof of other sources of income along with your w2’s and tax documents. The lender will be able to go over with you what loan programs you qualify for and the pluses and minuses of each program as well as let you know what the maximum amount you can borrow.

If your purchase is going to be an all cash offer we will need to make sure that we have available what is called “proof of funds” or a statement showing that you have the funds available to you to close the transaction.

The Pre-Qualification letter and/or Proof of Funds will be required to submit an offer and may be required to view potential homes in person.

Get Pre-approved

You can select any lender to assist you with your home purchase; however we recommend using one of our preferred lenders, They have a proven track record of being able to get the purchase to the finish line.

Ask us today for the contact information for our preferred lenders.

Start Your Home Search

The next step in buying a new home is for us to identify the the home you want to live in. The search will be based on your NEEDS, WANTS, & DESIRES we will search to locate homes that meet or exceed your expectations.

Investing in a home is one of the most important decisions you’ll make. So much more than a roof over your head, your home is where life unfolds and memories are made, while building a financial foundation for your future.

Your needs drive how and when we find your next home. From this day forward, everything I do will be motivated by your goals and how you imagine your life in a new environment. Once I get a thorough understanding of where you see yourself, finding your dream home will move faster and with minimal interruption to your daily life. And, it all starts with the home search.

Homes that we may want to consider may be homes listed in the MLS, FSBO (for sale by owner), New homes, or homes that may have previously been withdrawn or have expired from the MLS.

One easy way to search is to use the KW App.

With layers of options found on no other app, my app allows you to search by neighborhood and school district, revealing the details that matter most to you. Your neighborhood is an extension of your home. Neighbors, surroundings, and access to everyday things can and should factor into your home-buying decision. My app provides background on neighborhoods you won’t find anywhere else – including lifestyle trends, walkability ratings, local restaurants, and more.

Once you have identified the neighborhoods that you are most interested in, favorite the homes in those neighborhoods that best meet your needs. When you tap the ‘heart’ icon next to a home that catches your eye, you will have the option to add it to a collection. From there, you can share the collection with me, a co-buyer, friends, and family. Because searching for a home is anything but a solo activity, my app allows for true collaboration so that everyone stays on the same page.

Another helpful tool you may want to consider is to create a saved search. This is a preset filtered search that updates automatically with any new homes for sale. Simply fill out your desired search criteria (neighborhood, number of bedrooms, bathrooms, etc.) and tap the ‘save’ icon. You can then choose to be alerted through text or email whenever a new home meets your criteria. I can also set up saved searches for you, noting specific homes I think you may like and we can decide which ones are worth exploring further.

Tour Homes

Let's arrange to visit the homes that meet or exceed your expectations, we can view the homes together and in-person or I can take you on a video walkthrough of the home, to determine the best fit for you.

How can I make the most of my time when touring homes?

We’ll work together to get an accurate idea of your price range, an estimate of your monthly payments, and a pre-approval letter, so we can move quickly if need be.

Refining your “wants” and “needs” list will help us identify what’s most important to you, including both the location and the house itself.

Preview, favorite, and hide homes through the KW App to eliminate those you don't want to consider further.

Once we narrow your list, we’ll plan an itinerary together.

What should I expect when touring homes?

We will typically tour homes together alongside any co-buyers you’d like to join.

Homeowners usually aren’t home, so you’re free to spend as little or as much time as you want.

You may have a gut reaction when visiting a home. First impressions count, but I’ll advise you on home values and help evaluate priorities in the context of what’s available in your price range.

How many homes should I visit?

Sometimes buyers find their future home the first time out, and others look at several before they see one that checks all their boxes. It’s a good idea to see at least a few alternatives so you have some points of comparison, but sometimes you just know a place is where you want to live.

What should I look for when visiting homes?

Look beyond the staging and decorative items to see the features and fixtures that convey with the house.

Check the condition of the home.

Keep track with photos and notes.

Consider possible home improvements you might want to make so you can research costs later.

Don’t forget to check out the outside of the property and the neighborhood. I have access to relevant neighborhood insights and data to help inform your decision.

Locate your commuter route, schools, shops, restaurants, parks, and other amenities.

If the property is a condo or located in a homeowners association, we’ll assess the fees and rules to see if you can live with them.

As your trusted partner for your home search, feel free to reach out at any time should you have any questions about any of the homes we tour.

Make an Offer

After you’ve found the one, I’ll evaluate the market and draft a well-thought-out offer that also protects your interests.

When putting in an offer we will need to consider the following: Recent similar sales; seller’s desires/needs; deposit amount; number of offers on the property; inspection, loan and appraisal contingency time periods; amount you are willing to pay for the home; move in date; and other items available for negotiation.

I'm here to guide you through that process.

What should you include with our offer?

Your offer will be written using the most recent standard-purchase offer forms that comply with all state and local laws.

Your offer will include:

The price

Terms – such as a request for closing cost help or that the offer is subject to your obtaining financing and a home inspection

Target date for closing

Earnest money deposit – I can advise you about how big your deposit should be based on local customs and current conditions

Request for final walk-through

Time limit for the offer

Contingencies

What are the most common contingencies?

Financing. Unless you’re paying cash, it’s typical to write your offer with a contingency clause that lets you off the hook if you can’t finalize your mortgage within a certain number of days. Even though you have a pre-approval for a loan, it’s smart to protect yourself.

Appraisal. You may want to make sure a third party agrees that the contract price is the current market value. If you are financing your purchase the lender will require an appraisal. The appraisal contingency will protect you in the case that the value is determined to be less than the contract price.

Home inspection/investigation. Your offer can be made dependent on a satisfactory inspection of the home within a certain number of days. This protects you if an inspection uncovers expensive, necessary repairs.

What happens if I face multiple offers?

In a hot housing market, you may find yourself competing against other buyers. If that’s the case, I will work on your behalf, strategizing for your offer to be accepted. With access to real-time market data, I’ll know how to best position your offer.

Working to find out what’s important to the seller, such as a specific moving date, and to discuss possibly waiving contingencies, or adjusting your price are all options we can consider when facing multiple offers.

My goal is to make the offer a win-win for both you and the seller so that you get the best value on your new home with the terms that meets your needs.

What should I expect to see in the contract?

Some of the key points in your multipage contract include:

Accuracy of information, including the correct spelling of your name and the property address

The effective date of the contract – important because your contingencies have time limits

A list of contingencies, such as that the sale depends on financing, an appraisal, a satisfactory home inspection, and perhaps the sale of your current home

Property disclosure information from the seller, depending on your state laws

A complete list of what conveys with the property

A list of required inspections, such as a home inspection and a pest inspection

Information about when you can move in

In some cases, such as if your offer is contingent on the sale of your home, the seller may add a “kick-out” clause, which means that the seller could accept another offer if one is made before your home is sold

I’ll review the contract with you to make sure all of your questions are answered.

offer Negotiation

Our goal is to have the seller accept our offer. Sometimes it takes a little negotiation to reach a final decision.

Once an offer has been made the seller will have the opportunity to accept the contract as written, reject your offer, or counter your offer

If there’s more than one on the table, the seller can:

Accept the best offer

Counter all the offers to get a better price and terms

Counter one offer that’s close to what they want

What is a counteroffer?

A counter offer is where the seller will make adjustments to your terms. You can accept or reject the counteroffer and make your own counteroffer.

The crucial period between an offer and a final contract is an important time to stay in close contact with me, so you’re equipped with all the information you need to make smart decisions. I’ll work on your behalf to negotiate the terms of your purchase.

How do you know when to negotiate and when to let go?

We’ll work together to balance how much you want a particular property and what you’re willing to accept to get it.

You may want to let go when:

A bidding war drives the price too high

The appraised value of the home is below your offer

A home inspection finds defects that would be expensive to repair

The seller is unwilling to make reasonable repairs

You learn about homeowners association rules that won’t work for you

What are common contract pitfalls I should avoid?

We’ll watch out for:

Unrealistic deadlines: you’ll need time to arrange a home inspection and receive the report, as well as arrange financing

Missing deadlines means you lose your chance to end the contract and keep your deposit

Items that don’t convey with the property: if you’re not sure, we can discuss it

Communications from your lender

According to the National Association of REALTORS®, the most common reasons for contracts to fail or be delayed are home inspection problems, financing problems, or an appraisal issue.

I will be by your side at every step to help you navigate the complexities of a real estate contract.

The contract is final once you and the seller have agreed to all terms.

Accepted Contract

Once an agreement is reached we will be "in contract" or what is also known as "In escrow".

During this time we will help you navigate all of the steps that lead to a successful close. Keep in mind that while in contract there are several processes being completed all at the same time and it may feel a little overwhelming at times. Once your offer is accepted it is very important to make sure that we are diligent in staying within the timeframes in the offer.

Good Faith Deposit

Once in contract it is now time to take your good faith deposit to the title company.

One of the first items you will need to complete once we are in contract is delivering your good faith deposit to the title company. You can take that deposit in the form of a check, cashier's check or funds can be wired to the title company directly.

Your lender will need to verify that the deposit came from your account so make sure that it comes from an account that your lender knows of and that there is a paper trail (no mattress money).

Home Insurance

Home insurance protects your new home and belongings from accidental damages. Make sure you insure your home with a plan that fits. The best place to start is with your current insurance company that you use for Auto Insurance. They usually offer multiple policy discounts.

You can also check out Keller Covered for additional insurance options that may be available to you.

Contingencies

As we move forward we have protections or contingencies in place to allow us to cancel if something comes up that would prevent us from being able moving forward. We will need to work proactively to removal any contingencies that we have in a timely manner.

Common contingencies that are part of the purchase contract are the Inspection, Loan and Appraisal contingencies. The contingencies are in place to protect your ability to cancel the contract in case something happens that would prevent you from wanting to or being able to buy this home.

The contingencies get removed as we complete each item and should be removed in a timely manner following the time periods that were negotiated as part of the contract.

Inspection / Investigation- This contingency ensures that if anything is discovered during our inspection and investigation of the property that the seller is unwilling or unable to correct we can cancel the contract and you will get your deposit back. This is generally between 10-17 days.

Appraisal- The appraisal contingency ensures that if the appraised value comes in lower than what we wrote the offer for we can work to renegotiate the contract price to be at the contract price or we can cancel the contract and you will get your deposit back. If the appraisal comes in higher than contract price the seller does not have the right to renegotiate the price higher. This is generally between 14-21 days.

Loan- This contingency is in place to ensure if anything changes with your loan approval during the underwriting process and you are unable to qualify for the loan for any reason we can cancel the contract and you will get your deposit back. This is generally between 14-21.

Another contingency that we may include would be the Contingency for the Sale of an existing property.

If your loan or the purchase is dependent on the sale of another property will will include that as part of our offer. That ensures if something happens during that sale of the other home you aren't obligated to move forward.

Investigation & Inspections

Once in contract you will have the option to inspect and investigate the property. You will also get to review any information the seller has regarding the home.

You can conduct your own inspections or hire professionals to assist you in the inspection process. We will need to schedule any inspections as soon as your offer is accepted. If you have inspectors you prefer we can use those or I have a number of trusted inspectors we can turn to.

Keep in mind that unless you are using a VA loan all inspections are optional. The VA requires a pest inspection. We recommend that you attend the inspections when possible. It will allow you to get all of your questions answered. If you are not available, the inspectors will be happy to go over the report with you over the phone.

We recommend that you have the following types of inspections:

Whole house inspection- ($400-$600)this inspector is going to go over the home from top to bottom looking for health and safety issues. This inspector will also be able to answer most of the questions you may have regarding the home itself.

Pest- ($100-$150) The pest inspector is going to look for anything that can cause harm to the “wood” of your home- dry rot, termites, water damage, etc. They will categorize it into 3 areas- Section 1, or areas of current damage like dry rot or termites. Section 2 or areas of future damage if repairs aren’t made such as a kitchen sink drain that is leaking but there is no existing damage. Section 3 or things to pay attention to including areas that may need further inspection due to belongings in the way.

Roof- ($100-$150)The inspector will inspect the roof and make sure that it appears to be water tight. They will make recommendations that need done and for an additional fee they will certify or warranty the roof for up to 2 years if all repairs are made.

Others- Depending on the home that you are purchasing you may also want to get a Chimney, HVAC, Sewer Lateral, pool inspection or any of the inspections that you will find listed on the Statewide Buyer and Seller Advisory.

Seller Disclosures- In addition to the inspections you will also receive disclosures from the sellers that will detail what they know regarding the property as well as HOA documents if the home is in a Homeowners Association..

Natural Hazard Disclosure (NHD)- This is going to let you know if your home is in a flood zone, high fire hazard severity zone, if there are rare salamanders in your backyard, or if you are near an airport or area of commercial use along with other things.

Buyer Investigation- In addition to the reports and disclosures you will receive we also recommend that you stalk your new home. Drive by it at different times of the day on different days of the week. Walk around the neighborhood. Get to know your new neighborhood.

When attending the inspections you will get to learn more about home maintenance and you can review any potential problems yourself. The inspectors can answer questions as you go, so if there’s anything you don’t understand or are worried about, just ask. If you are unable to attend the inspections the inspectors will provide full reports for you to review and they are always happy to go over the reports an answer any questions your may have over the phone.

Repairs

I’ve got the inspection reports, now what?

Once you have completed all of your inspections and investigations and reviewed all of the reports and disclosures you will have the opportunity to ask the seller to complete repairs.

All homes will have things that need to be fixed or changed, items missing or even things that were done to code at the time that the home was built but may not be up to the current building code.

You only want to request repairs that would otherwise cause you to not move forward with the purchase of the home or the “deal Breakers”. You wouldn’t normally include normal maintenance type items or items that were obvious when you submitted the offer.

Home Warranty

We will make sure that we secure a home warranty for you. In most cases a seller will provide you with a home warranty and if they are unwilling to do so, we will provide the warranty for you.

A home warranty policy, which typically lasts for one year and is renewable, provides coverage for repairs to some of your home’s systems and appliances. In return for the annual fee, the company will cover repair costs and arrange for contractors. You’ll pay a service fee, usually around $75, if you need to use the warranty. For the major repairs it may not cover 100% of the costs. It will greatly reduce your cost out of pocket.

Do I need a home warranty?

If you’re buying an existing home, especially one with appliances that are more than four years old, a home warranty can give you peace of mind about paying for unexpected repairs and finding a reliable contractor. If you’re a first-time buyer, especially if you have limited savings, this can be particularly important.

If you have plenty of emergency savings, you’re handy, or you know good contractors, you may not need a warranty. You can count on me to provide referrals for recommended contractors.

If you’re buying a newly built home, structural defects are usually under warranty by the builder for 10 years, and other items are typically covered for six months to two years, so you don’t usually need a home warranty.

The Loan Process

Your lender will be in charge of ordering the appraisal and having an underwriter review all of your document to finalize your loan.

Once in contract we will send a copy of the accepted contract and all counter offers to your lender which will start the loan process. Your lender will send you initial disclosures to review and will allow them to get the process started.

The lender will order an appraisal. The appraisal is a third party independent opinion of the value of the property. This ensures that an outside source believes the value of the property is the same as what we are in contract for. Your lender will order the appraisal shortly after you start the loan process. Your lender may require the appraisal to be paid up front. You need to make sure that you are aware of this cost. It will usually be between $600-$750.

After the initial loan disclosures are signed and acknowledged your lender will lock in your rate and prepare to submit your file to the underwriter. Your lender may require additional or updated documents, letters of explanation or other items required be able to submit your file to the underwriter.

At times the items may feel tedious and excessive. Just know that this is a normal part of the process. Think of underwriting like quality control. They will review all the documents provided and compare it to what the bank requires. The underwriter may ask for more items in addition to what you have already given them or clarification on items after they review your file. These are called conditions. It is important that you provide them with everything they ask for in a timely manner as to not delay the closing.

Once all conditions have been received and reviewed your will be “Clear to Close” and final loan documents will be sent to the title company to be set up for closing.

Title & Escrow

The title company is the neutral party in the transaction. They handle all the funds required to close escrow and make sure all parties are in agreement before closing escrow.

The title company takes all the information and interprets it to make sure all parties are in agreement. They also handle all the funds in transaction. You will take your deposit to to the title company as well as any additional funds needed to close escrow.

The title company also searches all county and public records to make sure that the title of the property doesn’t have anything filed against it that would delay or prevent closing, or interfere with your ownership of the property.

Once they have conducted their records search the title company will issue a preliminary title report. . In this report you will find a legal description of the property, a plot map showing your lot lines, and a list of easements and encroachments on the property. . These would be items such as the utility company having permission to come on your property to access the meters. In rare cases someone else may have the legal right to cross your property to access theirs

Other items that you will receive from the title company are any CC&R’s (Covenants, Conditions & Restrictions) or rules that are recorded against the property as a way to help maintain the value of the neighborhood. This may include things such as that you can’t have farm animals in your backyard or leave a motorhome parked in front of your home for 3 months.

The title company will issue title insurance on the property to guarantee that as of the date that the home becomes yours no claims from the past can come back and challenge your ownership.

The title company will also orchestrate the closing of the transaction. The will make arrangements for all the parties to sign the final closing documents and they will also complete the final step in the home buying process and record the transaction at the county recorder's office. Once the recording is completed we are “On Record” and the home is officially YOURS!! This is when you will get keys!

The Final 5 Days

There’s no need to feel jittery before your closing as I will have you fully prepared for the day. We’ll stay in close communication to make sure that your questions are answered and you feel ready to sign on the dotted line.

As your closing day nears, here is what will happen in the final 5 days.

Clear to Close- When underwriting is complete and all conditions have been met on your loan you will be “Clear to Close” at this point your lender will verify all fees with the title company and issue a “CD” or the closing disclosure. Once you acknowledge receipt of these documents you will have 3 days to review the documents before we can move forward.

During this 3 day period is a good time to start

Signing- Next we schedule the signing of the official closing documents. The title company will call you to schedule this time. We prefer to do this at the title company as it helps to expedite the process. Sometimes it just won’t work to sign at the title company so there are mobile notaries that will go to you, if necessary. When title schedules the signing they will also make sure that you are aware of the funds required to close. Please bring those funds with you to your signing appointment in the form of a cashier’s check or you can wire the funds to the title company prior to your appointment. Just ask them to send you instructions.

Final Walk Through- Within 48 hours of closing we will conduct a final walk through of the property to ensure that any repairs were completed as requested and that the property is in the same condition as the day that we put the offer in.

Closing- Once you have signed your documents it will take about 24-48 hours to review that everything is accurate in the signed documents, your lender will conduct one last verification of employment and then they will release the funds to the title company for your loan. Once the funds are received, title will set up your transaction to be recorded at the county recorder's office.. Once “on record” the home is officially YOURS!

Other FAQs

Getting into contract is just one step in a long list of items that need to happen in order to reach a successful close of escrow. Here are some other important items:

Giving Notice- We don’t recommend giving notice to your landlord until all inspections and the appraisal has been completed. This just ensures that you aren’t homeless if we decide to not move forward with the home.

Don’t worry, about being able to handle 2 payments. When you close on a home purchase, in most cases you will have a delay in your first payment. For example: If you close in February you will not have a payment in March. Your first payment will be due April 1st. This means that even if you don’t give your 30 day notice until the end of January and you have to pay your February rent you still will not have a double payment.

Utilities- Once you have the “CD” for your loan, or when your signing at the title company is scheduled you can and should contact all local utilities to arrange for them to be moved into your name and/or turned on. This would include: electricity, gas, trash, water/sewer, and any other optional utilities such as phone, internet, TV, etc. We can get you a list if you need one.

Change of Address- Once you have the “CD” for your loan, or when your signing at the title company is scheduled you can and should register a change of address with the post office to make sure that your mail is delivered to your new address and not your old address.

Purchases- Do NOT make any large purchases during the home search and buying process. Adding to credit card balances and reducing the amount of available cash in your account can greatly affect your ability to qualify for the loan on your new home.

Major Life Decisions- Do NOT make any major life changes during the home search and buying process. Changing jobs, getting married, & large purchases may all change your ability to qualify for your loan.

Congratulations!

Congratulations on taking steps to purchasing your next home. Thank you for partnering with us as your trusted real estate advisors.

After your purchase, ask us to recommend fully-vetted service specialists in town or how you can care for your home. Further down the road, should you ever want to sell, We’ll have the scoop. You’ll always have our number, and we’ll always be ready to spring into action.