Navigating Real Estate,
One Unique Story at a Time.

Key Tasks

1. Review Your Credit

  • Obtain credit reports from Experian, Equifax, and TransUnion.
  • Check for errors (e.g., incorrect balances, unknown accounts).
  • Calculate FICO score (minimum 620 for conventional loans; higher scores get better rates).

2. Evaluate Debt-to-Income Ratio (DTI)

  • Add all monthly debt payments (credit cards, car loans).
  • Divide by gross monthly income; aim for <36%.

3. Review Your Credit

  • Calculate amount based on target home price (5%, 10%, or 20%).
  • Factor in PMI if down payment <20%.
  • Open a high-yield savings account to grow this fund

4. Budget for Closing Costs & Reserves

  • Estimate 2–5% of purchase price for closing costs.
  • Save 3–6 months of housing expenses for emergencies.

5. Get Pre-Approved 

  • Gather financial docs: last 2 years of tax returns, W-2s, pay stubs, bank statements, proof of assets.
  • Compare lenders for interest rates and fees.
  • Obtain a pre-approval letter to show you’re a serious buyer.

Common Problems:

  • Low credit score delaying loan approval.
  • Insufficient savings for down payment or unexpected costs.
  • Misunderstanding affordability limits.

Recommendations:

  • Start improving credit 6–12 months before house hunting (pay down debts, avoid late payments).
  • Use budgeting tools (Mint, YNAB) to track and optimize savings.
  • Consult a financial advisor to align budget with long-term financial goals.

Tasks

1. Identify Your Needs

  • Number of bedrooms/bathrooms, garage, yard, etc.
  • Accessibility needs or proximity to family/work/schools.

2. Set Location Priorities

  • Research safety, commute times, walkability, amenities.
  • Evaluate school districts for resale value.

3. Define Future Plans

  • Starter home vs. long-term residence.
  • Consider market growth and resale potential.

Common Problems:

  1. Overlooking location factors (crime, traffic).
  2. Unrealistic expectations for price vs. features.
  3. Failing to account for future life changes.

Recommendations:

  1. Use online tools (NeighborhoodScout, Niche) to analyze areas.
  2. Create a weighted scoring system for property comparisons.
  3. Look at properties within 80–90% of your budget for negotiation/upgrades.

Tasks

1. Research Agents

  • Experience in your target market.
  • Check online reviews and referrals.

2. Interview Candidates

  • Ask about recent transactions, communication style, market trends.

3. Sign an Agreement

  • Review buyer-agent agreement (commission often paid by seller).
  • Confirm availability for showings in competitive markets.

Common Problems:

  1. Choosing an agent who doesn’t prioritize your needs.
  2. Miscommunication about responsibilities.

Recommendations:

  1. Select an agent with a strong local track record.
  2. Set communication preferences (email, phone, frequency).

Tasks

1. Use Online Tools (Zillow, Redfin, Realtor.com, MLS)

  • Set filters for budget, location, desired features.

2. Attend Showings & Open Houses

  • Visit multiple properties, take photos/notes for comparison.

3. Evaluate Properties

  • Look beyond aesthetics; assess functionality, layout, storage.
  • Identify needed repairs/updates.
  • Monitor market trends (homes selling above/below asking).

Common Problems:

  1. Getting attached to properties outside your budget.
  2. Overlooking red flags (e.g., water damage, poor insulation).

Recommendations:

  1. Stay within pre-approved limits.
  2. Bring a trusted friend/family member for a second opinion.

Tasks:

1. Craft a Competitive Offer

  • Use a comparative market analysis for fair pricing.
    Include earnest money (1–3%).

2. Include Contingencies

  • Inspection, appraisal, financing approvals.

2. Negotiate

  • Be prepared to adjust terms (closing date, minor repairs).

Common Problems:

  • Losing out in bidding wars.
  • Overpaying due to emotional attachment.

Recommendations:

  • Rely on your agent for a strong, realistic offer.
  • Avoid waiving critical contingencies.

Tasks:

1. Schedule Inspections 

  • General, roof, plumbing, pest.

2. Order an Appraisal

  • Verify property value matches the offer.

3. Review Disclosures & HOA Rules

  • Check legal/structural issues, fees, regulations.

4. Check Title History

  • Ensure no liens or ownership disputes.

Common Problems:

  1. Major issues (foundation problems, unpermitted renovations).
  2. Appraisal or inspection delays.

Recommendations:

  1. Negotiate repairs or price reductions if significant issues arise.
  2. Walk away if deal-breakers appear.

Tasks:

1. Lock In Your Mortgage Rate

  • Consider fixed vs. adjustable-rate mortgages (ARMs).

2. Submit Documentation

  • Provide any additional paperwork promptly.

3. Review Final Loan Terms

  • Check interest rate, loan amount, closing costs.

Common Problems:

  1. Loan denial due to job loss or new debt.
  2. Hidden fees or unexpected rate increases.

Recommendations:

  1. Avoid major financial changes (new loans, big purchases).
  2. Clarify all terms with the lender before signing.

Tasks:

1. Final Walk-Through

  • Check completed repairs, confirm fixtures/appliances remain.

2. Review Closing Documents

  • Scrutinize for errors or unexpected fees.

3. Sign & Transfer Funds

  • Wire closing funds securely.

4. Receive Keys

  • Collect keys, garage door openers, access codes.

Common Problems:

  1. Title issues causing delays.
  2. Errors in closing documents or funds transfer.

Recommendations:

  1. Hire a real estate attorney to review paperwork.
  2. Use secure methods for wiring funds.

Stay Organized:

Track deadlines in a spreadsheet or project management tool.

  1. Build a Support Team: Agent, lender, attorney, inspector.
  2. Expect the Unexpected: Keep a contingency fund for surprises.
  3. Following these steps helps ensure a smooth home-buying journey!