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After the due diligence period, all that’s left is closing! The closing process is complex and timely; you will sign paperwork and hand over the check for your down payment. Once the purchase is funded and the transaction records are completed, the house is officially yours! Your agent will hand over the keys and welcome you to your new home.

If your offer is accepted, you will then enter the due diligence period. This mutually-agreed upon time frame is when you must complete the home inspection, any follow-up inspections, the appraisal, and any necessary negotiations. During this time, your agent will help you with these negotiations and scheduling inspections.

Once you have found “the one”, work with your Realtor® to place an offer on the home. The offer will also include a due diligence fee and earnest money that goes toward closing costs.
Your agent will do some research on the backend by finding comparable homes that have recently sold in the area. Comparing the value of nearby homes can give you a better idea as to how much you should offer. You should also know what things to ask when buying a home. Ask the seller for information about major features of the home such as the roof, HVAC system, and water heater.

Remember, each offer for each home will always be different. Some sellers may be in a rush to sell, while others may be looking for the best offer on the table. Either way, your agent will help you decide what will work best for you and the seller.

Drive around different areas and make note of what you do and don’t like about the surrounding area, the style and size of homes, the neighborhood as a whole, the lot size and landscape, and so on. You should also check out open houses and ask your Realtor® to schedule some showings. The more homes you look at, the more you will learn about what you’re looking for.

Real estate agents are important partners when buying or selling a home. More specifically, they are your advocates during this process and are obligated to do so. Plus, agents can provide you with helpful information on homes and neighborhoods that isn’t easily accessible to the public. Their knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in can be extremely valuable. And best of all, it doesn’t cost you anything to use an agent — they’re typically compensated from the commission paid by the seller of the house.

Figuring out your debt-to-income ratio is just one of many things to consider when financing your home and calculating the down payment. We recommend speaking with a mortgage lender to see what price range works best for you and getting a pre-approval letter to start the homebuying process.

Lenders generally recommend buyers look for homes that cost no more than three to five times their annual household income — if the home buyers plan to make a 20% down payment and have a moderate amount of other debt. Nowadays, you can put as little as 0-3% down. It all depends on what mortgage packages are available to you.