A practical guide to feeling prepared, confident, and ready when the right home comes along.

Buying a home is exciting, but it can also feel overwhelming-especially if it is your first time or it has been a while since your last purchase.

One of my biggest goals as a Realtor is to make sure my buyers understand the process before we ever get to the closing table.  A little preparation can make the entire experience smoother and help you avoid surprises along the way.

Here are five things I believe every buyer should know before starting their home search.

1. GET PREAPPROVED BEFORE YOU START SHOPPING

It is tempting to start scrolling through homes and scheduling showings right away, but your first step should be talking with a lender and getting preapproved. I always recommend using a local lender. If you are unsure who to contact, I can provide you with a list of preferred lenders.

A preapproval gives you a realistic idea of what you can comfortably afford and helps you understand the estimated payment, down payment, and cash you may need for closing.  It also puts you in a stronger position when you are ready to make an offer because sellers want to know that a buyer has already taken steps toward financing.

And remember the amount you are approved for does not necessarily have to be the amount you spend.  Your monthly payment should still fit comfortably into your own budget.

2.  YOUR UPFRONT COSTS INCLUDE MORE THAN THE DOWN PAYMENT

Many buyers focus on the down payment, but there are other expenses to plan for during the buying process. 

Depending on the transaction, these can include earnest money, a home inspection, an appraisal, closing costs, prepaid taxes and insurance, and other lender-related expenses.

The good news is that there may be loan programs and down payment assistance options available, and in some transactions a buyer may negotiate for the seller to contribute toward certain allowable closing costs.  This is one reason it is important to have both a knowledgeable lender and Realtor helping you understand for your speciic purchase.

3. THE BEST HOUSE IS NOT ALWAYS THE MOST PERFECT HOUSE

Most buyers have a wish list-and you should.  But it helps to separate your must haves from the things you would simply like to have.

Location, layout, number of bedrooms, commute, lot size, and major structural features may be difficult or expensive to change.  Paint colors, light fixtures, landscaping, and cosmetic finishes usually are not.

Try to look beyond someone else's decorating choices and focus on the things that matter most to your lifestyle and long-term plans.  Sometimes a home that does not photograph perfectly ends up being the one that feels right in person.

4. YOUR REALTOR DOES MUCH MORE THAN OPEN DOORS

Finding homes to tour is only one small part of the buyer representation.

Your Realtor helps you evaluate properties, research comparable sales, structure and negotiate an offer, coordinate deadlines, communicate with the listing side, work through inspections and repairs, and help keep the transaction moving from contract to closing.

Before touring homes, talk with your agent about how buyer representation works, what services are included, and how the agent will be compensated.  Understanding the relationship from the beginning helps everyone know what to expect and allows you to move quickly when you find the right property.

5. DO NOT WAIT UNTIL YOU FIND "THE ONE" TO LEARN THE PROCESS

The middle of a multiple-offer situation is not the ideal time to learn what earnest money means, how inspections work, what contingencies protect you, or what happens after your offer is accepted.

Ask those questions early. 

A good buyer consultation should walk you through the process from preapproval to closing so that when the right home comes along, you can make an informed decision without feeling rushed or confused.

READY TO START YOUR HOME SEARCH?

Buying a home is a major decision, but you do not have to figure everything out on your own. If you are considering buying in Richmond, Madison County, or the surrounding Central Kentucky area, I would be happy to help you understand your options and create a plan that works for you. 

Diane Montgomery, Realtor

Berkshire Hathaway HomeServices Foster Realtors