Buyer’s Guide

Before doing anything, it’s vital to think about what’s most important to you, the buyer. To do this and to make the right kinds of decisions without accidentally overpaying, it can be very helpful to find a real estate agent with a good track record who you can trust. First, it’s important to know your price range — how much you can spend and how large of a loan you can receive. This can be determined by visiting a lender and usually has to do with your income, credit rating, current monthly expenses, down payment, and interest rates. This is where you can consider getting pre-approved for a loan, which can help speed the process. 

Once you’ve done that, you and your team can begin to go through the details of your wants and needs. Do you need to move as soon as possible? Are you dead-set on an architectural style, a location, or a type of infrastructure? 

Another important thing to give some real thought to is the benefits of renting versus owning. Renting has its pros, including lessened responsibility since your landlord handles taxes, upkeep, and more. It also means you can move more freely. Some cons, however, include that the landlord can raise your rent. Owning a home, on the other hand, can come with some up-front costs but can help raise your equity and provide a stable sense of community. It also acts as an investment in your future more than paying rent to a landlord does, though you are responsible for repairs and upkeep. 

Determining what is necessary for your purchase can help narrow down the options and ensure you are buying the best possible property for your needs. After that is determined, you can set off!

The offer has been accepted. Now it’s time to enter “escrow,” the period between an offer and the moment when the keys actually change hands. This usually lasts anywhere between 30-90 days. During this time, the buyer puts “earnest money” in an account handled by an escrow officer, typically through a bank, demonstrating the buyer’s commitment to the purchase and ability to follow through. The seller will provide necessary documents such as tax receipts, equipment warranties, or more. 

Title insurance is its own process. A property title search analyzes public records to determine the legal owner of the property. At the end of this process, the legal owner should be you, the buyer. The title search will also help overturn any last-minute stones in case there are any claims or liens on the property that may affect your purchase. How you choose to title your home is also important—single homeowners have different responsibilities than joint homeowners, and issues like the right of survivorship come up here.