Buying a home for the first time can be exciting, exhilarating, thrilling.  And scary!  There are so many terms, so much paperwork, so many signatures. Sometimes it has you thinking, “What have I gotten myself into?” Overcome that fear!  All you need is knowledge. What happens when you want to buy the home of your dreams?  Read on for some tips and information. 1. Find a dedicated buyer’s agent to help you with your first home purchase. With so many ways to find listings online now, you may think that you can save time and money by representing yourself in a real estate transaction. But there are several ways a buyer’s agent can help you with your first home purchase. They can help with “just listed” homes, which appear on their hot lists before they hit the public Web sites. A buyer’s agent can tour you through homes that are on a MLS keybox, which you would have to schedule an appointment for otherwise. A buyer’s agent can help you negotiate your deal. They can help with suggestions for inspectors and due diligence on a home. And a buyer’s agent can help you through the quagmire of paperwork and signatures and facilitate a smooth closing. 2. How much can you afford to purchase? Get pre-approval for a mortgage from a lender. Most reputable mortgage companies will offer you a free home loan consultation. If you are purchasing a new construction home or condominium the developer may have a preferred lender, and if so that lender will help ensure that your loan funds and closes on time which is of benefit to you and the developer. Getting pre-approved also helps you have an edge when making an offer for a home. If you are curious how much your mortgage payment might be, you can use the online mortgage calculator at MCM’s preferred lender, www.countrywide.com. 3. Set aside money for a down payment/earnest money. In recent times, mortgage companies were offering zero down, low interest, variable rate loans, but that is what they clamped down on in the so called “subprime meltdown” of the past months. In the current lending climate, it’s still possible to find 100% / zero-down loans with some lenders, so be sure to shop the mortgage market to find out what is possible. 4. Set aside money for your closing costs. Your closing costs pay for services such as loan origination fees, title and escrow, and typically are 2% to 6% of your total home cost. The closing costs must be paid in cash at closing. Any earnest money you submit with your initial offer is applied to help pay for your closing costs. 5. You’ve found a home, you’re pre-approved, you’ve saved some money. Now how do you make an offer? When you are ready to purchase a home, this is done on a legal document called a Purchase and Sale agreement. This can be done as a private party without representation, but many buyers choose to have a licensed Realtor assist them. Once you have made an offer it’s typical for there to be several points of negotiation such as price. You may also choose to place an offer contingent on sale of a home, on an inspection, or on financing. It’s up to the seller whether they choose to accept an offer with contingencies. In a seller’s market you may want to avoid too many contingencies in your offer, but in a buyers’ market sellers would be more likely to consider an offer with contingencies. If you are buying a new construction or conversion condominium in the State of Washington, you will receive a Public Offering Statement and have seven days to read and review this document. Within those seven days from receipt of the POS you can rescind your purchase and sale agreement at any time for no other reason. 6. If your home is a resale or conversion condominium, make your offer contingent on a home inspection. Ask your Realtor to recommend an inspector who will tell you the detailed condition of the home including the furnace, plumbing, attic crawl space, under-house crawl space, etc. This typically costs $300-500 that the home buyer has to pay. It’s a good idea to attend the home inspection so you can ask any questions. It’s the buyer’s right to receive an MLS Form 17 (seller disclosure). Likewise it’s the buyer’s responsibility to do their due diligence by inspecting the property, neighborhood conditions, special assessments, etc.  Any defects that surface may then be negotiated with the home seller by the home buyer, or you may decide to accept responsibility for repairs and waive your contingency. 7. Get your home insured. Before you can close on your home, the mortgage company will require that you have home insurance. You can shop around for the best rates, including whatever company you have other insurance policies with. You can pay this yourself on a quarterly, half-yearly or yearly basis; but it’s more frequent for this to be rolled into your mortgage payments. 8. Sign your papers, and the home is yours! One thing that surprises many first-time home buyers is the volume of documents that you have to sign right at closing. Plan on being in-town and flexible just before you close. You will have to visit an escrow officer who will facilitate your closing by having all the paperwork in one place for your signature. Once you have signed all your paperwork, you can arrange to pick up the keys from the seller’s agent and you can move in to your new home! to top