Buyers
Your Guide to Buying a Home
Buying a home is a major milestone, and having the right guidance can make all the difference. This page walks you through every step—from securing financing and finding the perfect property to negotiating offers and closing the deal. You’ll also find expert tips on working with real estate professionals and what to expect after you get the keys. No matter where you are in the process, we’re here to help make your journey smooth and successful!
Know Your “Why”
There are many reasons to buy a home, and knowing your “why” can help guide your decision. Maybe you’re tired of renting and want to build equity for yourself instead of a landlord. Perhaps you’re looking to invest in real estate and expand your financial portfolio. If your current home no longer fits your needs—whether you need more space, a bigger yard, or a dedicated home office—buying may be a better option than remodeling. On the other hand, if you’re ready to downsize, a smaller home could offer more convenience and less maintenance. Or maybe you simply crave a change of scenery, a new neighborhood, or a different floor plan.
Whatever your reason, it’s important to be financially prepared. Avoid making large purchases, increasing debt, or changing jobs before applying for a mortgage. Consult a lender before closing any credit accounts, and address any liens or judgments that could affect your approval. Real estate remains one of the safest ways to build long-term wealth, so knowing your goals will help you make the best decision for your future.
Reasons to Own a Home
- Tax Benefits – US Tax code may allow you to deduct costs involved in purchasing and owning a home
- Appreciation – Historically, real estate has had a long-term, stable growth in value. In addition, the number of U.S households is expected to rise 10 to 15 percent over the next decade, creating high demand for housing.
- Equity – Building equity in your home is a ready-made savings plan.
- Predictability – Unlike rent, your fixed-rate mortgage payments don’t rise over the years so your housing costs may actually decline as you own your home longer. However, keep in mind taxes and insurance costs will likely increase.
- Freedom – The home is yours. You can decorate any way you want and choose the type of upgrades and new amenities that appeal to your lifestyle.
- Stability – Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity.
Choosing the Right Realtor®
a professional, ethical Realtor®.
Choosing the right Realtor® is the first and most important step in your real estate journey. A professional, ethical, and knowledgeable agent can make all the difference in navigating the complexities of a real estate transaction, from handling paperwork and meeting deadlines to providing expert advice along the way. Your agent’s first interaction with a seller’s representative can leave a lasting impression and even influence whether your offer is considered. That’s why it’s essential to select a Realtor® who is experienced, available, and dedicated to your needs. As you evaluate potential agents, consider their:
- Credentials & Experience – Look for ongoing education and industry designations.
- Availability – Ensure they have time for you, including nights and weekends.
- Responsiveness – Quick replies can make a difference in a fast-moving market.
- Communication – Choose an agent who listens and keeps you informed.
- Negotiation Skills – A strong negotiator will advocate for your best interests.
A full-time professional with a strong commitment to their clients will be best equipped to guide you through a successful transaction.
Considerations When Choosing a Lender
Selecting the right lender can make or break your real estate transaction—use your Realtor® as a valuable resource when choosing. Here are a few factors to consider when selecting your lender:
- Reputation and Experience – A professional Realtor® can recommend top-notch lenders who are experienced and knowledgeable. Experience is important, as lending products and laws are constantly changing.
- Knowledge of Mortgage Products – Ensure your lender is familiar with various mortgage options and can suggest the best fit for your situation.
- Processor and Underwriter Experience – A lender’s processor and underwriter should be experienced, ideally local, and have a good relationship with the loan officer to help things run smoothly.
- Local Lender – A local lender can be more accessible and provide a smoother process than internet-based lenders or brokers.
- Document Signing and Closing – It’s beneficial if your lender attends the buyer’s document signing and closing for better communication and understanding.
- Responsiveness and Flexibility – A great lender is responsive, flexible, and available 7 days a week to provide quick answers and pre-approval letters for offers.
- Communication Skills – Look for a lender who communicates effectively with both you and your Realtor® throughout the process.
- Collaborative Partner – A strong lender works closely with your Realtor® to provide payment scenarios, answer questions, and guide you on offer submissions.
Time to Go Shopping!
Make Your List:
Now that you’re pre-approved and have a Realtor®, it’s time to find the right home! Stay focused on your needs and keep in mind the 85% rule—most homes will have about 85% of what you want, so decide what you can compromise on.
- Must-Haves – Essentials like location, number of bedrooms, garage, or school district.
- Wish List – Nice-to-haves like a pool, upgraded kitchen, or walk-in closet.
- Deal Breakers – Absolute no-gos like busy streets, HOA rules, or lack of storage.
Explore Neighborhoods:
Drive around at different times of the day to see if an area fits your lifestyle. Look at maintenance, traffic, amenities, and safety.
Viewing Properties:
- Let your Realtor® schedule showings.
- Keep a top-three list to avoid being overwhelmed.
- Be aware there may be video/audio recording while viewing home.
- Know if you’re in a buyer’s or seller’s market.
Viewing Properties:
If you find your perfect “cream-puff” home (one that doesn’t last long on the market), know your decision-making style. Quick buyers win in competitive markets, while processors may risk losing opportunities. Your Realtor® is here to guide you—happy house hunting!
Next Steps After Finding Your Home
The Offer
Once you’ve found the home you want to buy, your Realtor® will assist you in writing and submitting your offer. Be prepared to provide earnest money—a deposit that demonstrates your good faith intent to purchase the home. This deposit is typically applied toward the purchase price at closing.
After submitting your offer, the seller may accept, counter, or reject it. If both parties agree on terms and sign the purchase contract, a series of contractual deadlines will follow. Your Realtor® will guide you through these steps to ensure all deadlines are met.
The signed offer documents will be sent to your lender and the closing agent, who is typically a title company but may also be an attorney. The closing agent will:
- Hold the earnest money in escrow
- Research the property’s title to ensure it is free of encumbrances
- Identify any recorded easements, encroachments, or rights-of-way that may affect your use of the property
- Ensure all necessary documents are properly recorded at closing
In Idaho, property titles are typically conveyed through a Warranty Deed. You may wish to consult an attorney or tax advisor for guidance on legal, estate, or tax considerations related to your purchase.
The Inspection
When making an offer, you have the option to include a home inspection contingency, which I highly recommend. While an inspection won’t eliminate all risk, it helps protect you by identifying potential issues before finalizing your purchase.
Inspection Basics
- Cost: Typically $300–$500, depending on square footage and age.
- Duration: About three hours; buyers are often encouraged to attend (your Realtor® must accompany you).
- Report: You’ll receive a full inspection report, and the inspector can discuss findings with you.
- Choosing an Inspector: Your Realtor® can recommend trusted professionals.
Why Hire Your Own Inspector?
A seller may provide a previous inspection report, but remember, that inspector was hired by the seller. To ensure unbiased results, it’s best to hire your own professional.
Types of Inspections
- General home inspection
- Specialized inspections: Roof, HVAC, structural, mold, radon, termite, etc.
- Land purchases: Well/septic inspections, property surveys, boundary confirmations
Inspection Fees & Contract Deadlines
- Inspection fees are non-refundable, even if you choose to back out of the purchase.
- Your contract will specify a deadline for completing inspections and submitting requests.
After the Inspection: Your Options
Once you review the report with your Realtor®, you can:
- Proceed as-is (removing the contingency)
- Request repairs from the seller
- Negotiate a credit at closing instead of repairs
- Request a price adjustment
- Terminate the contract (without losing your earnest money)
The seller may accept, modify, reject, or negotiate your requests. Your Realtor® will guide you through this process.
Home Warranties & Final Checks
- Home warranties offer additional protection after move-in but do not replace a home inspection.
- You have a contractual right to re-inspect any agreed-upon repairs before closing.
- Insurance Check: During the inspection phase, confirm the home is insurable before moving forward.
By understanding the inspection process, you can make informed decisions and protect your investment. Your Realtor® is here to guide you every step of the way!
The Inspection
When making an offer, you have the option to include a home inspection contingency, which I highly recommend. While an inspection won’t eliminate all risk, it helps protect you by identifying potential issues before finalizing your purchase.
Inspection Basics
- Cost: Typically $300–$500, depending on square footage and age.
- Duration: About three hours; most inspectors offer a 30-minute review of findings at the end of the inspection. Your agent must be present with you.
- Report: Within 24 hours, you’ll receive the inspection report. Your Realtor® will discuss the findings with you.
- Choosing an Inspector: Your Realtor® can recommend trusted professionals.
Why Hire Your Own Inspector?
A seller may provide a previous inspection report, but remember that the seller hired the inspector. To ensure unbiased results, it’s best to hire your own professional.
Types of Inspections
- General Home Inspections: All areas of the home, including an overview of the roof and HVAC.
- Specialized inspections: Structural, mold, radon, termite, etc.
- Land purchases: Well/septic inspections, property surveys, boundary confirmations
Inspection Fees & Contract Deadlines
- Inspection fees are non-refundable, even if you choose to back out of the purchase.
- Your contract will specify a deadline for completing inspections and submitting requests.
After the Inspection: Your Options
Once you review the report with your Realtor®, you can:
- Proceed as-is (removing the contingency)
- Request repairs from the seller
- Negotiate a credit at closing instead of repairs
- Request a price adjustment
- Terminate the contract (without losing your earnest money)
The seller may accept, modify, reject, or negotiate your requests. Your Realtor® will guide you through this process.
Home Warranties & Final Checks
- Home warranties offer additional protection after move-in but do not replace a home inspection.
- You have a contractual right to re-inspect any agreed-upon repairs before closing.
- Insurance Check: During the inspection phase, confirm the home is insurable before moving forward.
When you go under contract, you’ll have the first few days to review the neighborhood’s Covenants, Conditions, and Restrictions (CCRs). If something doesn’t sit right with you, no worries—you can walk away without losing your earnest money. Once the title company receives the contract, they’ll get started by opening title, doing a preliminary title search, and putting together a title commitment for everyone to review. If anything comes up in that report, don’t stress—the contract has built-in provisions to address them.
By understanding the inspection process, you can make informed decisions and protect your investment. Your Realtor® is here to guide you every step of the way!
The Appraisal
Once the inspection phase is complete and all parties agree to move forward, your lender will request a home appraisal.
A home appraisal is an estimate of a property’s value based on its location, condition, and recent sales of similar homes in the area. It determines the maximum amount a lender is willing to finance for the property.
How the Appraisal Works:
- Lenders do not select the appraiser directly. Instead, they request one through an Appraisal Management Company (AMC), which assigns an independent appraiser.
- The appraisal process can take up to two weeks to complete.
- Once finished, the report is sent to both the lender and the buyer.
Appraisal Considerations:
- Market conditions and the appraiser’s assessment can impact the final value.
- Appraisers use recent comparable home sales (also called “comps”) to help determine the home’s value.
Next Steps:
- If the appraisal meets or exceeds the agreed purchase price, the loan moves to final underwriting.
- If the appraisal comes in low, the buyer and seller may need to renegotiate the price or adjust financing terms.
Final Underwriting
You’re almost there! The appraisal contingency has been removed, and now you’re in the final underwriting stage of your loan. By staying proactive and responsive during this process, you’ll be well on your way to closing on your new home!
What to Expect in Final Underwriting:
- Your lender’s underwriting team will review all financial documents to ensure nothing has changed since your initial approval.
- It’s critical to follow your lender’s recommendations—avoid major financial changes, such as new credit inquiries, large purchases, or job changes.
- Be responsive to your lender’s requests and provide documents promptly to keep the process moving.
Homeowner’s Insurance Requirement:
- Your lender may have already asked you to shop for homeowner’s insurance to confirm the property is insurable.
- If not, you must secure a policy now, as the cost will be factored into your final loan numbers.
Closing Disclosure (CD):
- Once underwriting is complete, your lender will issue the Closing Disclosure (CD)—a detailed document outlining your final loan terms, monthly payments, and closing costs.
- Your lender will email you the CD three business days prior to closing. You must confirm receipt to start the three-day clock.
- The three-day window allows you to compare final loan terms to your original Loan Estimate and ask any last-minute questions.
Final Underwriting
You’re almost there! The appraisal contingency has been removed, and now you’re in the final underwriting stage of your loan. By staying proactive and responsive during this process, you’ll be well on your way to closing on your new home!
What to Expect in Final Underwriting:
- Your lender’s underwriting team will review all financial documents to ensure nothing has changed since your initial approval.
- It’s critical to follow your lender’s recommendations—avoid major financial changes, such as new credit inquiries, large purchases, or job changes.
- Be responsive to your lender’s requests and provide documents promptly to keep the process moving.
Homeowner’s Insurance Requirement:
- Your lender may have already asked you to shop for homeowner’s insurance to confirm the property is insurable.
- If not, you must secure a policy now, as the cost will be factored into your final loan numbers.
Closing Disclosure (CD):
- Once underwriting is complete, your lender will issue the Closing Disclosure (CD)—a document outlining your final loan terms, monthly payments, and closing costs.
- The lender must provide the CD at least three business days before closing.
- The three-day window allows you to compare final loan terms to your original Loan Estimate and ask any last-minute questions.
- The CD is usually emailed, but if mailed, the three-day period begins once you confirm receipt.
Closing and Funding
Once the Closing Disclosure (CD) phase is complete, the lender will send final figures to the title company, which will prepare the settlement statement. This document is a final reconciliation of all figures.
After final verification, the settlement statement is sent to your agent for review. Your agent will check for errors based on the purchase contract terms before forwarding it to you for final review. This statement will confirm any funds you need to bring to closing.
Final Walk-Through
A final walk-through is typically scheduled about three days before closing. This gives the buyer a chance to ensure the home is in the same condition as when the offer was made and that no new issues have arisen. If repairs were required, a separate walk-through may have already been completed to confirm they were properly addressed.
Your Realtor® will coordinate the walk-through and must accompany you during this final review.
Before Signing
As you get closer to move-in day, there are a few important steps to keep in mind to help everything go smoothly. From setting up utilities to understanding the funding process, here’s what to expect as you prepare to sign papers and then settle into your new home.
Utilities:
- Start preparing for move-in by contacting utility companies like electricity, water, and gas a week in advance of your move. Your Realtor® will reach out to the listing agent for the names of utilities currently in use. Keep in mind, internet providers may be booked out, so they may need more than a week’s notice.
- Some utilities, such as irrigation services or your Homeowners Association (HOA), require the title company to notify them when ownership of the property changes.
Your Realtor® will schedule your signing at the title company. You want to sign by noon the day of closing in order to have enough time for the funding to take place. Funding is when the new warranty deed is recorded and ownership changes hands. You can typically sign a day or so in advance as well if same day signing doesn’t work in your schedule.
What to Bring to Your Signing:
- A valid, unexpired photo ID (such as a driver’s license).
- If you owe any funds, they must be in the form of a cashier’s check made out to the title company. (Title companies typically do not accept personal checks for large amounts.) It’s also a good idea to bring a personal checkbook in case minor last-minute adjustments arise.
Signing Out of State:
If you need to sign documents out of state, inform your Realtor® as soon as possible so arrangements can be made in time to meet the closing date.
Your Realtor® is Here for You!
We personally attend our client’s signings to answer any last-minute questions, provide support, and celebrate this milestone with you. Purchasing a new home is a big step, and we’ll be with you every step of the way!
Be Aware of Wire Fraud
Wire fraud is a serious issue. DO NOT wire any funds unless you have confirmed the details directly with your Realtor®. Cybercriminals are skilled at hacking emails and sending convincing, fraudulent wire instructions. Fund transfers should always be handled by the title company, which will coordinate directly with your bank to ensure a secure transaction.
Home Warranty:
- You may choose to purchase a home warranty, which your agent can assist with.
- If a home warranty is being provided for you as part of the transaction, you will receive this information at your signing.
Funding & Recording:
- Once your home has officially been funded and recorded, the title company will let your Realtor® know. Your Realtor® will then give you a call to share the good news—and that’s when your keys will be ready for pickup at the title office!
- Please note, you’ll need to wait until your home has officially been funded and recorded before you can start moving in.
Signing
Your Realtor® will schedule your signing at the title company. You want to sign by noon the day of closing in order to have enough time for the funding to take place. Funding is when the new warranty deed is recorded and ownership changes hands. You can typically sign a day or so in advance as well if same-day signing doesn’t work in your schedule.
What to Bring to Your Signing:
- A valid, unexpired photo ID (such as a driver’s license).
- If you owe any funds, they must be in the form of a cashier’s check, or wired funds, made out to the title company. (Title companies typically do not accept personal checks for large amounts.) It’s also a good idea to bring a personal checkbook in case minor last-minute adjustments arise.
Signing Out of State:
If you need to sign documents out of state, inform your Realtor® as soon as possible so arrangements can be made in time to meet the closing date.
Homeowner’s Exemption:
You will be instructed at your signing on how to file your homeowner’s exemption. It is critical you complete this as instructed, as it significantly reduces your property taxes. Your Realtor® and lender can assist you with this.
Your Realtor® is Here for You!
We personally attend our client’s signings to answer any last-minute questions, provide support, and celebrate this milestone with you. Purchasing a new home is a big step, and we’ll be with you every step of the way!
Be Aware of Wire Fraud
Wire fraud is a serious issue. DO NOT wire any funds unless you have confirmed the details directly with your Realtor®. Cybercriminals are skilled at hacking emails and sending convincing, fraudulent wire instructions. Fund transfers should always be handled by the title company, which will coordinate directly with your bank to ensure a secure transaction.
After Signing Papers & Closing on Your New Home
After signing the papers, start preparing for move-in by contacting utility companies like electricity, water, and gas. You can find their contact information through the title company or your Realtor®. It’s also a good idea to set up cable and internet appointments in advance. Some utilities may need notification from the title company about the ownership change, so check when you call.
The HOA and irrigation companies will be notified of the ownership transfer. If you purchased a home warranty, you’ll receive policy details after closing.
Once the title company completes funding and recording, your Realtor® will be notified, and ownership officially transfers. You won’t have access to the home until then. Afterward, your Realtor® will provide instructions on how to get the keys and any access details.
At signing, you’ll also receive information on filing for a homeowner’s exemption, which can reduce your property taxes. In Idaho, as a non-disclosure state, you don’t need to report the purchase price to the taxing authority. Your Realtor® and lender can help with the process and assist in deciding whether to disclose the price you paid.
This is not goodbye!
Our services do not end once you have closed—we are here for you beyond the transaction. If you have any questions after closing, whether about your new home, the neighborhood, property taxes, or homeownership in general, please don’t hesitate to reach out. Need recommendations for contractors, landscapers, or other home services? We are happy to connect you with trusted professionals. If any issues arise with your home warranty, HOA, or anything else related to your purchase, we’ll do our best to guide you through it. And if we don’t have the answer, we’ll find someone who does. Your satisfaction and peace of mind are our top priorities!