Buying a Home Step 15: Gathering down payment closing funds

Gathering funds for your down payment and having them at the ready for the closing process is crucial when buying a home in Washington state. Here are some tips to help you prepare:

1. Start saving early: Ideally, you should start saving for your down payment as soon as you start thinking about buying a home. The more time you have to save, the easier it will be to reach your goal.

2. Set a budget: Determine how much you can realistically afford to put towards your down payment each month. Consider cutting back on unnecessary expenses to help you reach your goal faster.

3. Explore down payment assistance programs: Washington state offers several programs that can help first-time homebuyers with their down payment. Research these programs to see if you qualify.

4. Keep your funds in a separate account: Once you've saved up enough for your down payment, keep the funds in a separate account to ensure they're ready when you need them for closing.

5. Assemble all funds you'll need for closing in one location; if you're liquidating stocks, receiving gifts, or cashing bonds, you'll want to have all of that completed well before your actual closing day.

6. Be prepared for closing costs: In addition to your down payment, you'll also need to cover closing costs. Make sure you have enough funds set aside to cover these expenses as well.

By following these tips, you'll be well on your way to gathering funds for your down payment and having them ready for the closing process in Washington state, and ensure that you're able to meet your contract requirements and close on time on your new home!

Are you ready to begin the home-buying process? Whether your timeline is 3 weeks, 3 months, or 3 years, our team is here to help you every step of the way! Get started now by filling out our Ready To Buy Survey, and our team will reach out to schedule a call to discuss how we can support you on this path. 

Terra Wright Knudsen- Bainbridge Island Realtor

Buying a Hom Step 14: Title 101: Understanding what a title report means to your home.

When purchasing a home, a title report is a crucial document that outlines the legal history of the property. Here are some common items found on a title report:

1. Ownership history: This section lists all the previous owners of the property, including the current owner.

2. Liens and encumbrances: This section identifies any outstanding debts or claims against the property, such as mortgages, judgments, or tax liens.

3. Easements: This section details any easements or rights-of-way that exist on the property, such as utility access or shared driveways.

4. Property restrictions: This section identifies any deed restrictions, covenants, or zoning ordinances that may impact the use of the property.

5. Waterfront-specific items: For waterfront homes, the title report may include information on riparian rights, flood zones, and wetlands permits.

6. Well and septic tank-specific items: For homes with well and septic systems, the title report may include information on permits, inspections, and compliance with local regulations.

Here's a checklist of things to look for when reviewing a title report:

• Check the ownership history for any gaps or irregularities.

• Review any liens or encumbrances to ensure they will be resolved at closing.

• Evaluate any easements or property restrictions to ensure they won't impact your intended use of the property.

• For waterfront homes, review any special regulations or permits required for waterfront properties.

• For homes with well and septic systems, review any permits or inspections required and ensure compliance with local regulations.

Overall, a title report is an essential part of the home-buying process that provides important information about the property's legal history. Be sure to review it thoroughly and consult with a real estate professional and title representative if you have any questions or concerns.

Are you ready to begin the home-buying process? Whether your timeline is 3 weeks, 3 months, or 3 years, our team is here to help you every step of the way! Get started now by filling out our Ready To Buy Survey, and our team will reach out to schedule a call to discuss how we can support you on this path. 

Terra Wright Knudsen- Bainbridge Island Realtor

Buying a Home Step 13: Understanding HOAs, CCRs, and bylaws (when applicable)

When purchasing a home, it's important to understand the governing documents of the Homeowners Association (HOA) that governs the community. These documents, which typically include the Covenants, Conditions, and Restrictions (CCRs), outline the rules and regulations that all residents must follow. Here's a checklist of commonly found items to consider when reviewing these documents:

1. Architectural guidelines: These rules dictate what types of changes you can make to the exterior of your home, such as adding a fence or painting the house.

2. Use restrictions: These rules outline what you can and cannot do on your property, such as running a business from home or using the property for short-term rentals.

3. Maintenance requirements: These rules outline the responsibilities of the HOA and the homeowner for maintaining the property, including landscaping, painting, and repairs.

4. Assessment fees: These fees cover the cost of maintaining the community, such as landscaping, pool maintenance, and security.

5. Dispute resolution: These rules outline the process for resolving disputes between homeowners and the HOA.

Understanding these governing documents is crucial when purchasing a home in an HOA community. Make sure to review them carefully and ask any questions before making an offer.

Are you ready to begin the home-buying process? Whether your timeline is 3 weeks, 3 months, or 3 years, our team is here to help you every step of the way! Get started now by filling out our Ready To Buy Survey, and our team will reach out to schedule a call to discuss how we can support you on this path.

Terra Wright Knudsen- Bainbridge Island Realtor

Buying a Home Step 11: Keep your spending down. 5 things NOT to buy when you’re under contract

When you're in escrow on a home, it's important to be mindful of your finances and avoid making any major purchases that could jeopardize your ability to close on the home. Here are a few things you should avoid purchasing during this time:

1. A new car: Taking on a new car loan or lease can significantly increase your debt-to-income ratio, which could impact your ability to secure a mortgage loan.

2. Large furniture or appliances: While you may be excited to start decorating your new home, it's best to hold off on purchasing any large furniture or appliances until after you've closed on the home.

3. Appliance: Again, wait until you've closed on the property for any large purchases (are you noticing a trend here?)

4. Expensive vacations: Vacations can be costly and may impact your ability to make your mortgage payments on time. It's best to hold off on any major travel plans until after you've settled into your new home.

5. Opening new credit cards: Applying for and opening new credit cards can also increase your debt-to-income ratio, which could hurt your chances of securing a mortgage loan.

Overall, it's best to be conservative with your spending during the escrow process and focus on securing your new home.

Our team adds a fun item to your closing timeline called Operation: Checkout. We know you're so excited to start making your new home, well, YOURS! So build those shopping carts and wishlists, and WAIT until we give you the green light to check out! Trust us, it's worth it!

Are you ready to begin the home-buying process? Whether your timeline is 3 weeks, 3 months, or 3 years, our team is here to help you every step of the way! Get started now by filling out our Ready To Buy Survey, and our team will reach out to schedule a call to discuss how we can support you on this path. 

Terra Wright Knudsen- Bainbridge Island Realtor

Buying a Home Step 9: Negotiations

Negotiations are an important part of any real estate transaction. Here are some common negotiations that may arise during a real estate transaction:

1. Price: The most common negotiation during a real estate transaction is the price of the property. Buyers and sellers may have different ideas about the value of the property, and negotiations may be necessary to come to a mutually acceptable price.

2. Repairs: After a home inspection, buyers may request repairs to be made before closing. Sellers may negotiate which repairs to make or offer a credit for the buyer to make the repairs themselves.

3. Closing costs: Buyers may ask sellers to cover some or all of the closing costs associated with the sale. Sellers may be willing to negotiate on this point to make the deal more attractive to the buyer.

4. Contingencies: Buyers may have contingencies in their offer, such as a contingency on the sale of their current home or financing. Sellers may negotiate the terms of these contingencies or ask that they be removed altogether.

5. Closing date: Sometimes buyers and sellers may have different timelines for closing. Negotiations may be necessary to find a closing date that works for both parties.

It's important to work with a real estate agent who can guide you through the negotiation process and help you come to an agreement that works for everyone involved.

Are you ready to begin the home-buying process? Whether your timeline is 3 weeks, 3 months, or 3 years, our team is here to help you every step of the way! Get started now by filling out our Ready To Buy Survey, and our team will reach out to schedule a call to discuss how we can support you on this path. 

Terra Wright Knudsen- Bainbridge Island Realtor

Buying a Home Step 8: Ordering a Home Inspection

Ordering a home inspection is a crucial step in the home-buying process. A home inspection can help identify any potential issues with the property and give you an idea of the repairs or maintenance that may be needed. Here is a checklist of items that a home inspector typically finds on an inspection:

1. Roof: The home inspector will inspect the roof for any signs of damage, wear and tear, or leaks.

2. Foundation: The foundation of the home will be inspected for any cracks or signs of settling.

3. Plumbing: The home inspector will check all plumbing fixtures, pipes, and drainage systems for leaks or potential issues.

4. Electrical: The electrical system of the home will be inspected for any outdated or unsafe wiring, circuit breakers, or other electrical components.

5. HVAC: The heating, ventilation, and air conditioning system will be inspected for proper function and maintenance.

6. Appliances: All major appliances, such as the stove, refrigerator, and dishwasher, will be checked for proper function.

7. Windows and doors: The inspector will check all windows and doors for proper sealing and function.

8. Attic and insulation: The attic and insulation will be checked for proper ventilation and insulation levels.

9. Exterior: The exterior of the home will be inspected for any signs of damage or wear, including siding, paint, and landscaping.

By ordering a home inspection and reviewing this checklist, you can ensure that the home you are considering purchasing is in good condition and free of any major issues.

As a home buyer, your Realtor should absolutely be on site for your home inspection make sure you ask good questions and help you better understand the process, especially if additional inspections or bids are necessary after issues are discovered. Check out our resources tab for a list of recommended home inspectors in the Bainbridge Island, Kitsap, and Seattle areas.

Are you ready to begin the home-buying process? Whether your timeline is 3 weeks, 3 months, or 3 years, our team is here to help you every step of the way!

Get started now by filling out our Ready To Buy Survey, and our team will reach out to schedule a call to discuss how we can support you on this path. Terra Wright Knudsen- Bainbridge Island Realtor

Buying a Home Step 7: Earnest Money and Escrow

If you're buying a home in Washington State, you'll likely encounter the terms "escrow" and "earnest money." These are important parts of the home-buying process, and understanding them can help you navigate the transaction with confidence.

Escrow is a process where a neutral third party (an escrow company or attorney) holds onto funds and documents related to a real estate transaction until all conditions have been met and the sale can be completed. Earnest money, on the other hand, is a deposit made by the buyer to show their commitment to the purchase.

Here are some tips for home buyers in Washington State when it comes to opening escrow and earnest money:

1. Understand the timeline: In Washington State, the timeline for opening escrow and submitting earnest money can vary by transaction. Your real estate agent or attorney can help you understand these timelines and ensure that you meet all deadlines.

2. Be prepared to provide documentation: When opening escrow, you'll need to provide various documents, such as a purchase and sale agreement and proof of your earnest money deposit. Be sure to have these documents ready and available.

3. Consider the amount of earnest money: The amount of earnest money required can vary, but it's typically between 1-3% of the purchase price. Consider how much you're comfortable putting down and make sure you have the funds available.

4. Understand the refund policy: If the sale falls through, you may be entitled to a refund of your earnest money deposit. However, the refund policy can vary by transaction, so be sure to read the fine print and understand your rights.

Overall, opening escrow and submitting earnest money are important steps in the home-buying process in Washington State. By understanding these concepts and following these tips, you can navigate the transaction with confidence and ease.

Are you ready to begin the home-buying process? Whether your timeline is 3 weeks, 3 months, or 3 years, our team is here to help you every step of the way! Get started now by filling out our Ready To Buy Survey, and our team will reach out to schedule a call to discuss how we can support you on this path.

Buying a Home Step 6: Your offer has been accepted! Now what happens?

Congratulations on having your offer accepted on a home! After the excitement of getting your offer accepted passes, there's still work to be done before you can move in. Here's a checklist of common things that happen in the escrow process in Washington State:

1. Earnest Money Deposit: You'll need to provide an earnest money deposit to show the seller that you're serious about buying the home.

2. Home Inspection: It's important to get a home inspection to ensure that there are no major issues with the home.

3. Appraisal: The lender will require an appraisal to ensure that the home is worth the amount that you're borrowing.

4. Title Search: A title search will be conducted to ensure that there are no liens or other issues with the title.

5. Contingencies: You'll need to satisfy any contingencies in the contract, such as obtaining financing or selling your current home.

6. Closing Costs: You'll need to pay closing costs, which can include fees for the loan, title, and escrow.

7. Final Walk-Through: You'll do a final walk-through of the home to ensure that any repairs that were agreed upon have been completed.

Once all of these items have been completed, you'll be ready to close on the home and move in!

Are you ready to begin the home buying process? Whether your timeline is 3 weeks, 3 months, or 3 years, our team is here to help you every step of the way!

Get started now by filling out our Ready To Buy Survey, and our team will reach out to schedule a call to discuss how we can support you on this path.

Buying a Home Step 5: Make an Offer

Making an offer on a home can be both exciting and nerve-wracking. It's important to have a solid understanding of the process and to be prepared before diving in. Here are some key steps to consider:

1. Get pre-approved for a mortgage: Before making an offer, it's important to know how much you can afford. Getting pre-approved for a mortgage will give you a better idea of your purchasing power.

2. Research the market: Look at comparable homes in the area to get an idea of what the home you're interested in is worth. This will help you determine a fair offer.

3. Work with a real estate agent: A good agent can guide you through the offer process and help you negotiate with the seller.

4. Make a competitive offer: Your offer should be based on the market research you've done and should take into account any repairs or renovations that the home may need.

5. Be prepared for negotiation: The seller may counter your offer, so be prepared to negotiate until you reach a mutually acceptable agreement.

Remember, making an offer on a home is just the beginning of the homebuying process. There will be inspections, appraisals, and other steps that need to be taken before closing. With the right preparation and guidance, however, you can make a successful offer and become a homeowner.

Are you ready to start your homebuying process? Fill out our Ready To Buy Survey, and our team will help you get started!

Buying a Home Step 4: Start Touring Homes

Scheduling home tours can be an exciting but overwhelming process. To ensure that you make the most of your time and find the home of your dreams, it's important to have a checklist of what to look for when touring a property. Here are some key items to include on your checklist:

1. Location: Is the home in a desirable neighborhood? Are there nearby amenities such as shops, restaurants, and parks?

2. Exterior: Check the condition of the exterior, including the roof, siding, and landscaping. Are there any visible damages or needed repairs?

3. Interior layout: Does the layout of the home suit your needs? Is there enough space for your family and belongings?

4. Rooms: Check the size and condition of each room, including the kitchen, bathrooms, and bedrooms. Are they in good condition and do they meet your needs?

5. Storage: Is there enough storage space such as closets, cabinets, and pantry areas?

6. Lighting: Check the lighting in each room to ensure that it meets your preferences.

7. Appliances: Check the condition and functionality of appliances such as the refrigerator, stove, dishwasher, and washer/dryer.

8. Plumbing: Check for any leaks, water damage, or plumbing issues.

9. Noise level: Pay attention to the noise level inside and outside of the home. Is it located near a busy road or noisy neighbors?

10. Safety: Check for smoke detectors, carbon monoxide detectors, and fire extinguishers.

By utilizing this checklist during your home tours, you'll be able to make informed decisions and find the perfect home for you and your family.

Are you ready to start your homebuying journey? Fill out the Ready to Buy survey, and our team will reach out to help you begin!