Buyers Central

Is's an Exciting Time for a Rookie Homebuyer

In buying your first home, you'll want to work with a professional who has the experience and offers the services that will make this an exciting time for you. A home purchase is an investment in your future, and the equity you build as well as the pride in home ownership makes it a smart decision any way you look at it. However, in buying your first home, you'll most likely face a lot of questions, so it's important for you to understand what's involved in the home buying process.

The Seller

Agrees to pay commission to both the listing agent and the buyer's agent
Might help pay some of the closing costs

Getting Pre-Approved

First and most important step
Determines what you can afford
Helps you decide which mortgage is best for your situation
Shows the seller that you're a serious buyer

Looking at Homes

Make a list of your wants and must-have's
Your REALTOR® will send you homes of interest via email
Be sure your REALTOR® schedules your home tours for you
You'll visit and walk-through homes and Open Houses until you find "the one"

The Purchase Offer & Negotiations

Decide on your offer price
Decide the loan-type you want
Discuss closing costs, who pays for what, closing date, and home inspection
This is the time to ask for any special stipulations

Earnest Money

Required at the time you write the contract
Usually an amount between $500 and $5,000; about 1% of your loan
Kept in the broker's escrow account while contract is fully negotiated
At closing, it's credited back to you as part of your down payment
If the contract does not go through, the money goes back to the buyer
If the buyer is in default of the contract, however, they could lose their earnest money