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BUYER'S GUIDE
Buying a home is one of the most important decisions you’ll make, and having the right guidance makes all the difference. North Star Group’s Buyer’s Guide walks you through every step of the process with clarity and confidence. Follow below to successfully find your dream home, and scroll down to request your copy of our complete Buyer’s Guide.
1. START WITH YOUR CREDIT
Before beginning your home search, it’s important to understand your credit. Credit reports are maintained by the three major bureaus—Experian, Equifax, and TransUnion—and provide a history of your payment habits and any past credit challenges.
Your credit score is calculated based on the information in these reports, meaning you may have three different scores. This number plays a key role in determining your ability to qualify for a loan and the interest rate you’ll receive.
To prepare, request a copy of your credit reports and review your scores through a trusted source such as MyFICO.com. Errors are more common than you might think, so be sure to dispute any inaccuracies directly with the credit bureaus, as corrections can take a few months. If your report reflects past issues, be ready to discuss them with your lender so they can better understand your situation.
2. SET YOUR BUDGET
Determine how much home you can comfortably afford by starting with online tools, then getting pre-approved by a lender for a more accurate picture based on your income, debt, and credit. A general guideline is to target homes priced around two to two-and-a-half times your annual income, while keeping total monthly housing costs near or below 36% of your income. Your down payment and existing financial obligations will also play an important role in shaping your budget.
3. LINE UP YOUR FUNDS
Once your budget is set, prepare for both your down payment and closing costs. While 20% down is common, many loan programs allow for as little as 3%. If you put down less than 20%, you’ll likely pay private mortgage insurance (PMI), which increases your monthly payment. Be sure to also budget for closing costs—typically 2% to 5% of the loan amount—including fees for appraisal, inspections, and title services.
4. FIND THE RIGHT AGENT
While many agents represent the seller, it’s important to have a dedicated buyer’s agent focused on your best interests. A buyer’s agent helps you find the right home, negotiate effectively, and guide you through every step of the process with confidence.
5. SEARCH FOR A HOME
Start by choosing a city or neighborhood that fits your lifestyle, focusing on areas with strong amenities, stability, and long-term value—especially those with highly rated schools. Pay attention to market trends, as fast-moving homes or prices above asking indicate strong demand. If possible, search during the off-season when competition may be lower. Keeping your criteria flexible with location and price can also open up more opportunities and help you find the right home more efficiently.
6. MAKE AN OFFER
Once you find the right home, act quickly and work with your agent to submit a strong, strategic offer based on recent sales and market conditions. In competitive markets, stronger offers may be necessary, while slower markets can offer more room to negotiate. Avoid going too low and instead focus on terms that appeal to the seller, such as timing or flexibility. Once an agreement is reached, a purchase contract is prepared with a typical closing timeline of 30 to 45 days.
7. ENTER INTO A CONTRACT
Once your offer is accepted, you’ll enter into a formal purchase contract. It’s important to have your agent or attorney review the agreement to ensure key protections are included. These typically include financing approval, a satisfactory home inspection, and the ability to complete a final walk-through before closing.
You’ll also submit an earnest money deposit—usually 1% to 10% of the purchase price—which is held in an escrow account until closing. This deposit shows your commitment to the purchase and is applied toward your transaction at closing. If the deal falls through due to a contingency, your deposit is typically refunded.
8. SECURE YOUR LOAN
Once you’re under contract, it’s time to finalize your financing. Work closely with your lender to lock in your loan terms, including choosing between a fixed-rate or adjustable-rate mortgage and deciding whether to pay points.
During this stage, your lender will complete a credit check and order an appraisal to confirm the home’s value. While some upfront costs may apply, most loan-related fees are typically paid at closing.
You’ll also need to secure a homeowner’s insurance policy, as most lenders require proof of coverage before approving your loan. Staying responsive and organized during this step will help keep your transaction on track for a smooth closing.
9. GET A HOME INSPECTION
In addition to the lender’s appraisal, it’s important to hire your own home inspector to evaluate the property. An inspection typically takes a few hours and provides valuable insight into the home’s condition, including structure, systems, and overall maintenance.
Attending the inspection is highly recommended, as it gives you a better understanding of the home. If significant issues are discovered—such as roof or structural concerns—you can work with your agent or attorney to negotiate repairs, request a credit, or adjust the purchase terms.
If an agreement cannot be reached and your contract includes an inspection contingency, you may have the option to walk away without penalty. This step helps protect your investment and ensures you’re making an informed decision.
10. CLOSE THE DEAL
As you approach closing, your lender will provide a final settlement statement outlining all costs associated with your purchase. Review this document carefully, as it includes items such as title insurance, which protects your ownership rights, along with other closing-related fees.
Your lender may also require an escrow account to cover future property taxes and insurance, typically collecting a few months of payments upfront.
Before closing, you’ll complete a final walk-through to ensure the home is in the agreed-upon condition. On closing day, you’ll sign the necessary documents, finalize your loan, and officially take ownership of your new home. While the process is straightforward, your agent will guide you through each step to ensure everything goes smoothly.
GET YOUR COMPREHENSIVE BUYER'S GUIDE
The path to a new home is often filled with uncertainty, but it doesn’t have to be. We’re more than just agents; we’re expert listeners and navigators. By asking the right questions, we help you define exactly what you’re looking for—reducing search time and providing the clarity you need to make the right decision for your future.
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