Buying a Home: What to Know Before You Start

Buying a home is a series of decisions, and you don’t need to have every answer before you begin. You do need to know whatBuying a Home: What to Know Before You Start you can comfortably spend, what you want from the property, and which questions need answers before you commit.

Here’s how I approach the process with buyers.

Start with the cost of owning the home

A lender can tell you what you may qualify to borrow. That’s useful, but your budget should also reflect what you’re comfortable paying each month. Include the mortgage, property taxes, insurance, any HOA fees, utilities and money for maintenance. You’ll need cash for a down payment, closing costs and the expenses that come with moving in.

You don’t necessarily need 20% down. Depending on your qualifications, loan programs may allow a smaller down payment, though that can change your monthly payment and other costs. Ask a lender to compare the full cost of your options and give you an estimate of the cash you would need to close. If you’re still at this stage, I’m happy to talk through your goals and help you prepare the questions to take to a lender.

Get pre-approved, then start looking

Pre-approval gives you a working price range and puts you in a better position to make an offer. Your lender will review your income, debts, assets and credit, so gather the documents they request and ask about anything in your finances that may affect approval. Compare loan terms and fees, not just the advertised interest rate. Pre-approval is an early assessment; the loan still has to be approved for you and the property you choose.

Before we look at homes, we’ll talk about what you think you need and what you hope life in the home will feel like. Your budget and basic requirements give us a place to start, but I don’t expect your first list of priorities to be your final one. Sometimes you learn more from walking through a home that surprises you than from seeing another one that checks all the boxes on paper.

You might walk onto a deck and realize you would happily give up some interior space for that setting. You might love the view but discover that the steep driveway would be difficult for you in winter. A small cabin with a fireplace could feel more like the getaway you imagined than a larger house, while another buyer may find that easy access and nearby neighbors make a home much more enjoyable. None of those reactions is a wrong turn in the search. They tell us what to look for next.

I’ll ask what worked for you, what didn’t, and whether the appeal of a feature holds up when we consider the whole property. In the mountains, that means looking beyond the photos at access, parking, stairs, snow conditions, insurance, decks and any property rights you expect to use. We can adjust the search as your priorities become clearer. The goal is to make sure you understand the compromises you’re choosing, rather than keep showing you homes based only on the list we made at the beginning.

Before I represent you, we’ll also review the buyer agreement, the services I’ll provide, its duration and how compensation would work.

Build an offer around the property

When you find a home you want, we’ll look at comparable sales and the details of that particular listing. The offer sets out more than a price. It also addresses your deposit, financing, inspections, appraisal, closing date and any credits or other terms you want to request.

I’ll help you weigh those terms and negotiate with the seller. A stronger offer is not necessarily one that gives up every protection. We should understand what each term does, what risk you’re taking, and where your limit is before a counteroffer arrives. Your deposit generally goes toward the purchase at closing; what happens to it if the sale doesn’t close depends on the contract and the circumstances.

Use escrow to investigate

Once an offer is accepted, there is work happening on several fronts. You’ll review the seller’s disclosures and title information, arrange a home inspection, and follow up with specialists when something calls for a closer look. Your lender will continue working on the loan and may order an appraisal. You’ll also need to confirm that you can obtain acceptable insurance for the home.

For a mountain property, an inspection may raise questions about a roof, deck, drainage, retaining wall or access that deserve more investigation. Other properties may bring different questions. I’ll help keep the people and deadlines coordinated, but you’ll decide what you’re comfortable taking on after you have the information.

If a concern comes up, we can consider asking for a repair, a credit or a price change. Sometimes the seller agrees; sometimes they don’t. We’ll review your options under the contract before you make the next decision, especially when a contingency deadline is approaching.

Review the final details before closing

Before closing, compare your Closing Disclosure with the earlier Loan Estimate and ask your lender about any figures you don’t understand. For most purchase mortgages, the lender must provide the Closing Disclosure at least three business days before closing. Confirm any instructions for transferring funds by calling your escrow or closing professional at a number you already know is genuine.

We’ll also do a final walk-through to check the home’s condition and any agreed repairs. Plan your move and utilities around the possession date in the contract, which may differ from the day escrow closes. Once the closing requirements are complete and possession is authorized, you can get your keys.

If you’re thinking about buying in the San Bernardino Mountains, you can reach out at any point in this process. We can start with the questions you have now, whether you’re working out a budget, reconsidering your priorities or already looking at a particular home.