Buyer's Guide

Purchasing a home is one of the biggest and most important financial decisions you will ever make. Whether you are a first-time homebuyer or already well-versed in the purchase process – it is important to have a dedicated real estate expert to guide you and keep your best interest a priority.

Tired of paying rent? By renting, you are paying SOMEBODY’S mortgage; why not make it your own? This is the best way to invest in your financial future. In our local market, this is a great investment. Our local economy has soared. Greater Lafayette offers so much in industry, education, lifestyle and community. It is a fantastic place to work, play and raise a family!

Your first step in preparing to purchase is connecting with a trusted and reputable lender. Speaking with a lender will give you an idea of what you can afford, what program, and what is expected financially to purchase a home. This is extremely important! In a fast-paced market like we are in, your offer will not even be considered without written prequalification from a lender.

This can be done over the phone, face to face, or at the first showing of a home you’re interested in. This is to get to know your realtor! It’s an opportunity to narrow down your specific criteria in a home as well as discuss the entire home-buying process so that there are no surprises along the way. Knowing what to expect ahead of time will prevent unnecessary stress in the home buying process.

Select a few properties that fit your interest and have your agent schedule your showings. Be sure to ask your agent about potential resale value. Our job is also to ensure you are well-prepared with any potential costs associated with each specific home.

Narrow your search by choosing preferred locations by neighborhood, zip code or specific schools. If you are unfamiliar with the area, take a drive to see what parts of town (or out of town) draw your interest.

Once you have chosen a property you would like to pursue, we are here to help you draft an offer that the seller will accept. Each part of the purchase agreement will be reviewed with you, and offer strategy will be discussed in depth, prior to submitting your offer. Our goal is to draft it in a way that gives you an advantage over another offer.

After you have an accepted offer, your agent will notify your lender and deliver the fully executed documents so that he or she can start your loan file. Contact your lender to get started with your full loan application. Your lender will require various documentation to submit to underwriting and move your file to closing. It is imperative that communicate closely with your lender throughout the entire loan process.

Escrow - A closing agent will hold your earnest money in an escrow account until closing. Earnest money is a measure taken to show the buyer’s “earnest” in purchasing the home, or their commitment to buy. It can also be considered a deposit toward the down payment. Furthermore, it serves as a protective measure for the seller -- if the buyer were to back out of an agreement without reasonable cause, the seller would have the right to keep the earnest money as damages.

Inspections - If you opt to reserve your right to an inspection on your home purchase (which is always recommended), you will have a window of time to order, execute and respond to the findings. Your agent will explain the verbiage in the purchase agreement regarding inspections, and the definition of a true defect. Buyers will have an opportunity to submit an inspection response form, if there are particular concerns they feel should be addressed by the seller. Buyer agent and listing agent will negotiate requested items until both parties agree.

Appraisal - If you are financing your home purchase, your lender will require an independent appraisal. This should be ordered as soon as possible by your lender to ensure closing date is achieved with no setbacks. The appraiser will view the home and review comparables to determine its value.

Insurance - If you are obtaining a loan, your lender will require you to purchase a certain amount of insurance on the home. You can save money by shopping around and considering your options. Obtaining insurance is also to be done according to the timeline written in your purchase agreement.

Earnest money - $500+ — within 3 business days of an accepted offer

Whole house inspection - $250-450 — at time of inspection

Appraisal - $400+ — at time of ordering

Down payment - Due at closing. This depends on loan program: FHA – 3.5%, Conventional – 3%, 5%, 10%, 20%, VA – 0%, USDA – 0%

Closing costs - Fees associated with purchasing a home. This is due at closing. Closing costs will vary, but average range for buyer closing costs is $2500-4000. Your lender will have a better idea of what you should expect.

Always be sure to schedule a final walk thru. This is an opportunity to ensure agreed-upon repairs were made, and that the house is in the same, if not better condition as before. You will verify that everything is in working condition and that nothing was left behind/ no surprises. This typically happens a day or so before closing.

Make sure to obtain utility provider information and schedule transfer to your name for closing day.

The closing agent will prepare a settlement statement for all parties to review prior to closing. All parties will certify its accuracy. The settlement statement will detail all financials for both sides of the transaction.

If you are bringing down payment funds (down payment & closing costs) to the transaction, you may elect to have them wired into the closing agents’ escrow account, in the specified amount on the settlement statement. Or, if it is under a certain amount, you may elect to bring it in the form of a certified check. Keep in mind, your earnest money will already be there, so deduct that amount from what you’ll be bringing to closing.

Listing agent and seller will provide keys and any other pertinent items for the transfer of ownership.

Sign a big stack of papers, shake hands and take your keys.